The Australian government’s active efforts to induce a cross-country
reduction in smoking by causing a hike in taxes and plain packaging
rates in smoking rates are being undercut by tobacco companies. The
tobacco giant British American Tobacco Australia (BATA) has introduced a
$13 pack of 25 cigarettes into the Australian market.
These ‘cut-price’ line of cigarettes, known by their shelf name of
Rothmans, claim to be the cheapest on the market and are enticing more
people to smoke due to their inexpensive price tag. Despite infuriating
anti-smoking lobbying campaigns, BATA hinted at the possibility of
lowering cigarette prices even further to cater to the new demands of
the cut-price line of cigarettes.
It is a well-known fact that high cigarette prices are major
deterrents for smokers, cigarette suppliers are justifying selling
cut-price line cigarettes as strategic motions to retain market shares
in an industry that is facing tough government opposition.
The government implemented cigarette taxes last December that saw a
12.5 percent tobacco excise each year over a four year period,
increasing the average price of a pack of cigarettes to between $20 and
$25 while simultaneously raising approximately $5 billion in government
revenue.
On the contrary, BATA spokesperson Scott McIntyre made claims that
the increase in cigarette taxes has driven consumers, especially between
the ages of 18 years and 30 years, to search for cheaper
options. According to BATA, the cheap cigarette sector saw a 66 percent
increase in the past five years, with more than 42 percent of all
cigarettes being priced under $15 per pack.
Health campaigners have called for even stronger government actions
to curb the trend of increasing smoking rates as a result of cut-price
line cigarettes. Anti-smoking campaigns are pushing for an absolute
minimum price for cigarettes across the board and the subsidization of
nicotine patches to encourage smokers to quit rather than take up
smoking
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