Coles’ cheap imported cigarettes cause uproar
Coles is in hot water from Federal Health Minister Nicola Roxon for selling imported cigarettes significantly cheaper than local cigarette brands, undermining the Government’s anti-smoking efforts.
Coles is selling imported discount ‘home brand’ cigarettes in packs of 25 for about $11, or $4 less than an equivalent locally produced product The Herald Sun reports, undermining attempts by the Federal Government to reduce smoking rates by increasing taxes on cigarettes, says federal Health Minister Nicola Roxon.
Small business is already hurting from the Federal Government’s decision to introduce plain packaging and a new tax hike on cigarettes according to the Council of Small Business of Australia (COSBOA), with Coles using it’s market size to import its own brand of cigarettes from overseas, small business will not only lose sales due to the increases in taxes, but will lose out to Coles undercutting their prices as well.
“COSBOA supports strong tobacco control measures to reduce the prevalence of smoking and disease in Australia, but prohibitive pricing and identical packages are not solutions to this problem,” said former COSBOA CEO Jaye Radisich.
“As long as tobacco remains legal to sell, purchase and consume, small businesses should not be inadvertently punished for selling it.
“There is simply no need for these extreme measures in order for the Government to pursue the health outcomes it desires. This has serious ramifications for hardworking small businesses that sell and make an income from a legal product.
“Increasingly the tax on cigarettes will dramatically increase the price, and consumers will be driven to large national chain stores like Coles and Woolworths who can afford to wind back their profit margins to get customers through their doors.” Ms Radisich said.
Related Keywords: Cigarettes, Coles, COSBOA, Nicola Roxon, Taxes
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Good for them, dont let the Gov rule you !! its there right.
Whooray for Coles. Good on them.
I am soooo glad I have given up the smokes- not only for my health but the cost is absurd!
It seems to me we no longer live in a democratic country,its more like a dictatorship.We all know that smoking is not good for you,but the choice to smoke or not is being taken away from us,by a government that is only interested in raising revenue from some of the simple pleasures we have in life.If we all stopped smoking today,where would the govenment raise the 30 billion dollars a year they make from tobacco tax.Maybe they will increase motor registration,which is already the highest in the world,or maybe they can slug another tax on alcohol,which is already higher than most european countries,my point is that if people chose to smoke or drink or drive a big petrol gussling 4 wheel drive,then they should not have pay a premium for doing so.The fact is i will probably die long before most none smokers,so i shall not be drawing down on a government pension until im 100 years old,so in actual fact i shall be saving the governmet money,so at least let me enjoy my life,no matter how short it will be,with some of the things i like to do,and not be penalised for doing so,,,,Barry
Easy fix – whack an import duty on them.