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Doctors call for new tobacco levy
28 December 2009.
AMA Victoria today called on the State Government to introduce a new tobacco transaction levy which could see the price of cigarettes rise to $20 a pack and reduce the availability of tobacco for children and people wanting to quit.
The proposed tobacco transaction levy would increase the cost of smokes incrementally – by 10 cents a cigarette on 1 July 2010, 15 cents in the second year and 20 cents in the third year – with pack of 30 cigarettes costing about $20 from 1 July 2012.
AMA Victoria President Dr Harry Hemley said a price rise was the most effective measure to reduce smoking rates. "Three quarters of smokers who took part in a Cancer Council Victoria survey earlier this year said they would quit if the price of cigarettes rose by 50 per cent," he said.
"A significant price increase should be the next step in reducing the addition, disease and death we see from cigarette smoking. Children are particularly price sensitive, so a steep increase in the cost of smokes should see less children taking up this destructive habit.
"Smoking is the largest cause of preventable disease in Victoria and is responsible for around 4,000 deaths each year.
"The Federal Government has failed to implement substantial tobacco price increases – it is now time for the Victorian Government to take matters into its own hands and introduce a tobacco transaction levy," Dr Hemley said.
"Smokers know that giving up tobacco is often the single best thing they can do to improve their health. Hopefully some smokers will give up before the price of cigarettes increases – I expect quitting will feature prominently on some new year’s resolution lists over the next few days."
Dr Hemley said based on a conservative estimate of five billion cigarettes smoked in Victoria in 2010-11 and a drop in consumption thereafter, the levy could raise over than $3 billion in four years for preventative and acute health care.
The levy would be on the transaction of cigarettes rather than on tobacco products themselves to ensure constitutional validity.
AMA Victoria’s anti-tobacco proposal, outlined in its 2010-11 Victorian Budget Submission, also recommends the Victorian Government introduce tobacco licensing fees for vendors.
"Any business can currently sell tobacco," Dr Hemley said. "Introducing licensing fees would make tobacco vendors think twice about whether they want to sell cigarettes.
"Some vendors that sell small amounts of tobacco would baulk at the cost of a license to sell tobacco and would rather remove themselves from the market than pay a license fee.
"The reduced availability would make it far more difficult for smokers to buy tobacco, particularly after-hours. This could provide the nudge some smokers need to cut back or quit."
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