Options to increase Tobacco Excise
Three options for tobacco excise increases are presented below, and assessed in terms of their likely impact on: government revenue; tobacco consumption and smoking prevalence; on consumers; and on tobacco suppliers:
- 10%+CPI increases for four years, implemented on 1 January.
- An immediate 10% increase in May 2012, and further 10%+CPI 1 January increases for four years.
- An immediate 30% increase in May 2012, and further 10%+CPI 1 January increases for four years.
Other options include implementing a single step increase in tobacco excise, or the status quo. The relative effect of both these options on the government's revenue and smoking cessation targets can also be inferred through the analysis below.
