A price hike on cigarettes is expected to raise $5.3 billion for the federal government over four years
AAP understands Treasurer Chris Bowen will make the announcement in Sydney on Thursday and that the tax increase will raise $5.3 billion over the forward estimates.
Prime Minister Kevin Rudd hinted a tax increase was on the cards on Wednesday.
"Cancer is Australia's number two killer and therefore it is a number one priority for the Australian government," Prime Minister Kevin Rudd told reporters.
"I'm the son of a woman who never smoked in her life and she died of lung cancer, we assume through passive smoking."
Health Minister Tanya Plibersek would not confirm a tobacco tax increase but said it could have benefits.
"There's a strong public health case for increasing the price of tobacco," she told Sky News.
Australia spends $31 billion on health care for ill smokers.
"If we see a decline in smoking rates and that causes a drop in excise collection that would be a fantastic outcome," she said.
In April 2010 Labor lifted the cigarette excise by 25 per cent, adding $2.16 to the price of a pack of 30 smokes.
In this year's federal budget, smokers copped a seven cent rise in the cost of a packet of 25.
Anti-smoking groups agree taxing tobacco is an effective preventative measure.
Shadow treasurer Joe Hockey said Labor was hitting people with higher taxes and dressing it up to look like a health initiative.
LINK :
1. http://www.sbs.com.au/news/article/1794795/Tobacco-tax-hike-%27to-raise-$5.3b%27
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