Governments Should Make the Most of Tax Windfall for Tobacco Control
The Australian Medical Association today urged the Federal Government to use the benefits of an expected tobacco tax windfall following the implementation of the GST, to help fund its National Tobacco Strategy.
AMA Federal President, Dr David Brand, highlighted an Access Economics assessment of the GST on the inflation rate. Because tobacco excise is linked to the Consumer Price Index, the higher inflation rate will lift the revenue heading the Government's way from cigarette sales.
"This is a window of opportunity that should not be ignored because better funding is needed for such an important public health initiative to reduce smoking," Dr Brand said.
"The state governments should also be encouraged to utilise the increased revenue from the GST in coming years to fund their tobacco action plans contained in the National Tobacco Strategy.
"The Federal Government's National Tobacco Strategy is an impressive and comprehensive tobacco control initiative and it needs more resources.
"However, the federal and state governments only spend around $10m per year on tobacco control yet the revenue from tobacco products is $4.5bn per year.
"The Federal Government must take this opportunity to fully utilise the windfall for the health of the Australian community," Dr Brand said.