Smokers will look for price, not health
THE Federal Government’s tax hike on cigarettes will do more to annoy smokers than taking colour off the packets, according to Coffs Harbour’s The Club Tobacconist manager.
Nicole Green said the smokers who file through the shop are influenced by price more than looks.
“In terms of packaging, it won’t make a difference,” she said.
“But people will shop around with a price hike.”
From July 1, 2012, the Government will force tobacco companies to use plain packaging.
Ms Green said she knew of people who would walk the extra distance to save five or 10 cents per packet of smokes. The 25 per cent tax increase will mean an increase of about $2.16 for a pack of 30, raising the cost to about $17.95.
The profit margin for most tobacco retailers on a packet of cigarettes is about 10 per cent per pack and only six per cent on a carton.
Tobacco companies have released a flier claiming that last year, $6 billion of tax was collected on cigarettes but only one per cent of that was used on preventative health measures.