The annual cost of tobacco tax to Māori is approximately $120 million more than the combined annual budget of the entire Vote Māori Development portfolio and the average annual amount spent on Treaty Settlements, says the Executive Director of the Taxpayers Union Jordan Williams.
As tobacco prices went up by 11% today. Williams describes the latest tax hike as 'a raid on the wallets of Māori'.
Another increase in tobacco prices is not how some Wellingtonians wanted to start their new year.
Here was the reaction from some of the general public:
"I think it’s silly. I think it’s because of the government trying to make money."
Another says, "That's crazy just for twenty cigarettes. Where are people gonna get $40 for a packet of cigarettes."
"Well so is living cost as well."
"Go to work and get money for smokes."
Jordan Williams of the Taxpayers Union says as a result of these increases, our country now charges the worlds highest income adjusted rate of tobacco excise.
Williams says, "Māori actually pay more in tobacco excise tax than the Government spends on Māori development and on treaty settlements.
“That shows what the Governments doing with tobacco taxes is it’s giving with one hand and taking with the other."
Williams says that through these price increases the Government is undermining decades of effort to improve outcomes for Māori.
Williams also says, "Māori already pay four times the level of the cost of the health system of smoking. Income adjusted we have the most punitive tobacco excise tax in the world and what we're pointing out is actually the Government is using smokers as cash cows.
Williams believes if the Government made it easier for smokeless products like vapes to be marketed current smokers are more likely to make the shift.
More reaction from the general public -
"Yeah struggle like with me I only get $60 on my benefit after everything goes out and I only buy a packet of twenties."
"$40 is a ridiculous amount for cigarettes to be honest."
"I guess I can provide for my own habit so yeah."
"Every year they increase the price and if you’re a regular smoker it’s very difficult."
Williams concludes that the Government's own advisers are pointing out the Smokefree 2025 target doesn't require never-ending taxes on the poorest.