A 50 percent cut to tobacco customs duties would hand multinational tobacco companies an estimated windfall worth around $2.3 billion annually, according to the Public Health Association of Australia (PHAA).
Adjunct Professor Terry Slevin, the association’s CEO, says the new estimates reinforce the need for governments to remain strong against intense tobacco industry lobbying – an issue that was put in the spotlight last week during Senate inquiry hearings into illegal tobacco.
“At a time when 66 Australians die every day from tobacco-related disease, the tobacco industry appeared before the senate inquiry hearing arguing for cheaper cigarettes and a tax cut,” Adj Prof Slevin said.
“The conversation happened behind closed doors, and without being included on the hearing agenda. This is typical of the stealth tactics the tobacco industry uses when lobbying to protect its profits at the expense of public health.
“It’s important for governments to recognise that arguments for a tax cut are part of an orchestrated campaign being driven by the tobacco industry and associated organisations with a focus on self-interest and profits, not concern for public health and safety.
“Our Federal Budget will be revealed tomorrow. With so many urgent pressures on our health system and budget, a reduction in tobacco excise would represent a perverse and unacceptable giveaway to an industry whose products are responsible for the deaths of hundreds of thousands of Australians, as well as billions of dollars in healthcare costs and lost productivity.
“The only real winner from a tobacco tax cut would be the tobacco industry itself. We estimate British American Tobacco would receive an estimated windfall of more than $1 billion, Imperial Brands more than $600 million, and Philip Morris more than $500 million annually. So it is no surprise the tobacco industry lobbying campaign around tax cuts has intensified.
“Cutting tobacco tax would not stop the illicit tobacco trade. Even under the tobacco industry’s proposed tax cut, the price difference between legal and illicit tobacco would remain large enough to continue driving organised criminal activity and illegal supply.
“Regardless of whether they are illicit or legal, cigarettes kill. We need governments to focus on enforcement, including tighter regulation of the supply chain and tobacco retailers.”
Adj Prof Slevin says he hopes the Senate inquiry will lead to a government commitment to stamping out tobacco industry interference and reducing the impact of smoking across the country.
“Australia also has clear obligations under the WHO Framework Convention on Tobacco Control to protect public health policy from tobacco industry influence.
“One positive outcome of this Senate inquiry could be greater transparency around tobacco industry lobbying and influence activities, including the role of retailers and associated interests. Australians deserve to know the extent of these influence campaigns.
“Rather than handing billions of dollars back to multinational tobacco companies, Australia should be strengthening public health protections, reducing smoking rates, protecting future generations and considering stronger reforms such as stopping tobacco industry political donations.”
Associate Professor Raglan Maddox, Program Lead of the Tobacco Free Program at the Australian National University, says the debate highlighted the importance of protecting future generations from industry harm.
“Young people are increasingly seeing through tobacco industry narratives and calling for a nicotine-free future grounded in culture, truth-telling and community leadership,” he said.
“At a time when communities are working hard to reduce smoking and vaping harms, the answer is not cheaper cigarettes. The focus should remain on protecting future generations, and preventing addiction before it starts.”
More detail is here.
PHAA’s submission to the inquiry is available here.
For further information/interviews:
Hollie Harwood Strategic Communications Advisor, 0400 762 010 [email protected]
About the Public Health Association of Australia
We’re Australia's peak body for public health and advocate for the health and wellbeing of everyone. We strive to help prevent – rather than cure – illness and disease. We represent around 2,000 individual members from more than 40 professional groups interested in the promotion of public health. We have branches in every state and territory. https://www.phaa.net.au/