A SECOND increase in tobacco taxes in three years is being considered as the Federal Government wrestles with filling revenue shortfalls without slashing jobs and services.
Treasurer Chris Bowen will deliver an economic statement later this week to take account of the sharp drop in Commonwealth revenue, which has been greater than forecast in the May Budget.
Government taxes already make up 60 per cent of the price of a packet of 30 Peter Jackson cigarettes. But, a higher cigarette excise tax hit on smokers could be backed by arguments it is a health measure.
The Australian National Preventive Health Agency (ANPHA) on July 25 highlighted the cost of treating diseases related to smoking and urged further funding of "social marketing activities focused on increasing awareness of the health risks of smoking and supporting quit attempts".
But on the eve of an election there are political dangers for the Government.
Today it was warned it could risk angering the Labor base and adding disproportionately more to the burdens on the weekly expenses of some of the poorest than to the expenses of well-off smokers.
"Raising excises or other commodity taxes on alcohol, food and tobacco would merely punish families, especially on lower incomes, for the pent up deficits and debts under this federal government over the past six years," said Dr Julie Novak of the right-wing Institute of Public Affairs (IPA).
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