New Zealand aims for a smoke-free country with 40% tobacco tax hike

New Zealand’s government on Thursday announced a 40% hike in tobacco taxes over the next four years. Prices here are already among the highest in the world, and by 2016 they will top NZ$20 ($15) a pack on average.

Smoking rates among New Zealand adults have fallen from about 30% in 1986 to about 20% today. Cigarette sales have fallen more sharply, suggesting that even people who haven’t quit cut back as prices rose.

Officials hope higher taxes and new restrictions will bring the nation of 4.4 million closer to a recent pledge to snuff out the habit entirely by 2025. Other countries have lauded the idea of trying to wean their populace off tobacco, but few, if any, have been willing to put a date on it.

Health officials here are so serious they recently considered hiking the cost of a pack of cigarettes to NZ$100 ($75). Although that idea was dismissed, another measure, which will force retailers to hide cigarettes below the counter rather than putting them on display, will come into effect in July.

People who are still smoking aren’t happy about where prices are going.
 
The South Pacific nation’s smoking statistics are similar to those in other developed countries. According to a 2011 study by the World Health Organization, about 20% of adult New Zealanders smoke. That compares to about 16% of adults in the U.S., 17% in Australia, 23% in China and 27% in France.

New Zealand already charges more than 70% tax on cigarettes, compared to 41% on average for China, 45% on average for the U.S., 64% for Australia and 80% for France.