TEMPO.CO, Canberra - Australian Government have announced to increase tobacco tax as much as 60 percent for the next four years in an effort to cover the country's state budget deficit.
Australian Finance Minister Chris Bowen mentioned that the policy is also set to lower the number of cancer patients in the country. Bowen said that raising tobacco tax wil eventually help to reduce smokers.
Australian Financial Review stated that the initial increase will take place on December 1, 2013, with an increase of 12.5 percent. The increase will make a pack of cigarette costs A$ 19.70. Bowen later said that this will help increase state income as much as A$ 5,3 billion for the next four fiscal years.
However, some parties believed that the policy is highly affected with political interests as Prime Minister Rudd sets to establish a political platform of the Labor Party.
CHANNEL NEWS ASIA | TRIP B