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Smoking and taxes

Discussion in 'The Pub' at netrider.net.au started by deadman, Nov 12, 2010.

  1. I am a smoker,

    $32-00 for a packet of Roll your own Tobacco,

    $28-00 is Tax and excise,

    All the people giving up smoking is a loss of huge amounts of taxes,

    Speed camera's are one way of getting back the lost taxes on smokers,

    High fuel costs are another way.

    Alcohol is another,

    Tolls on roads we have already paid for in taxes are another,

    In the early ninty's, We were forced to pay 2 cents a litre on fuel for upgrading and building new roads,

    Middle ninety's, they upped it to 5 Cents a litre,

    They have never recinded these amounts and we are still paying them.

    Where has all this money gone too.

    I dont hear the media doing any thing about it.
  2. Good question
  3. are you SURE the real cost of the tobacco is only $4??

    anyway, the governments of this country can bleat all they like about what you are doing to the health-care costs, but they'd be broke if it wasn't for the taxes, eh?
  4. Its pretty close to the mark Hornet,

    The $4-00 is slightly exagerated, its more around the the $3-40 Mark per packet.

    and smokers tax also cover the entire health budget, If you want to hunt up the statistics on it, You will get quite a shock,

    While your at it, try fuel and alcohol costs, the actual costs to put it in the hands of the consumers. With out any taxes or excise added.
  5. The tobacco tax revenue for 2007/8 was $5.9 billion.
    The total health care bill for Australia for the same period was $103 billion.

    Road maintenance, construction costs, land use costs. $15 billion.
    Revenue from fuel excise and GST. $14 billion
  6. You could always grow your own... It might even be legal as long as you don't sell it...
  7. when i worked in the service station, i asked the cigarette reps about the cost of it all. apparently, the tobacco companies get about $2-4 for each packet sold (for example, a $12.00-$16.00 packet, etc).

    the rest goes to the gummerment
  8. I wouldn't be surprised to see tobacco banned in our lifetime. There is a big push for it across europe. Not so much banned as prohibitively expensive, until it just isnt sold anymore. In the meantime, the taxes and prices will keep going up
  9. I emailed the cancer council about this quite a while ago:

    From Me:

    Hey Guys!

    Just a quick note regarding some statistics that were quoted recently about the cost of smoking to the community.

    I think it was on Q&A on the ABC when a senator mentioned that smokers pay 3.5 billion dollars over and above the amount they cost the health system in treatment and advertising etc etc. He quoted the Cancer Council as the source.

    It sounded like an interesting figure to me, and I'm sorry to be a pest, but I'd really like to know if this is true or not?

    Any help you could provide in tracking down the study it'd refer to would be greatly appreciated.



    And the response...

    Dear Mr Slack,
    Thank you for your inquiry regarding statistics relating to the cost of smoking to the community attributed to Cancer Council Victoria.

    The study being referred to is: Scollo, MM and Winstanley, MH [editors]. Tobacco in Australia: Facts and Issues. Third Edition. Melbourne: Cancer Council Victoria; 2008 which is available at http://www.tobaccoinaustralia.org.au/

    In this study, it is noted that if a narrow view is taken of the current levels of revenue from taxes on tobacco products in comparison to the total levels of expenditure by federal and state governments that result from tobacco abuse then in 2004–05 tobacco tax revenue exceeded tobacco-attributable costs borne by the public sector by more than $3.5 billion. Of this surplus, $2.7 billion accrued to the Commonwealth and about $800 million to state and territory governments.

    However the impact of tobacco abuse on Australian society is much broader than its effect on government tax revenues and government expenditure on tobacco-attributable health care. The same study notes that the total social costs of smoking in Australia were estimated to be $31.5 billion dollars in 2004-05. Of this amount, $12 billion was due to tangible costs such as spending on health care services or drug subsidies and the costs associated with absenteeism and loss of labour in the workforce. The remainder was due to intangible costs such as pain and suffering and loss of life. The study also notes that of the total tangible costs of smoking in 2004–05, more than half were borne by households, 42% were borne by business, and only 7.6% were borne by governments, while the intangible costs are borne by individuals.

    I hope this helps.


    Mrs EtcEtc

    There you go. Regarding the overall cost of smoking to a socialist style health system tobacco companies in Czecheslovakia commissioned some research years ago about how smoking actually saves society money through death. Strangely they ran a series of ads about this to protest tax increases during the 90's. Despite the hoo-ha about the calousness of the research and the public relations nightmare that came with the advertising nobody has really challenged the statistics. The Czechs aren't us, but I think there might be some relationship between the two.

    NPR fuelled ramble out.
  10. Oh that's a stretch.
    People taking a break from work is one of the 'horrors of smoking' ??

    Wonder what the gruesome cost to the nation is due to evil cups of tea/coffee.
  11. I think they are referring to absenteeism due to illness not ducking out for a quick ciggie.

    Although if you add up all those "breaks" across the board, be they for cigarettes or coffee, I think you would find they constitute a significant cost to business in terms of lost productivity.
  12. My sig on another forum is 'In my tribe it is customary to support our assertions with evidence'. The assertion was made earlier in this thread that taxes on smokers fund the entire health budget. Evidence was brought that in fiact they fund a little over 3%. Didn't see a retraction and correction...
  13. Don't forget, folks, smokers often don't claim the aged pension. Not for very long anyway.
  14. Just on this note, I've always thought it was interesting how many of the philosophy and literature PhD students I know smoke. It appears to me to be at least 50%. This mob argue (albeit after a couple of beers, so its not the most scientific of surveys) that smoking actually helps their productivity. They put it down to needing to give themselves regular breaks, say every 60-90 min., from what they're reading or writing. One of them reported that, after he'd quit, he found he wasn't giving himself these regular breaks, and so instead of lasing a whole day in the library, he would just keep working, but would wind up shattered after 3 or 4 hours. (I'd like to say this was my problem too, that I never get anything done because I work too hard and need to go home early, but no one believes me...)

    Anyway, point of story is that he was surprised to find to what degree he'd been measuring time through his nicotine addiction, and that these breaks were of benefit to his productivity. I guess there's a reason why classes at school/uni usually only last 50-60min, and why most people who've taught classes learn pretty quickly that, if they have a double-period to teach, the kids need a break half way through or you're just going to loose them mentally.
  15. interesting comments about productivity and smokers.

    you know, i've often thought, when the smokers go out for their multiple breaks, being a non-smoker, i'd just stop work, take a seat, and restart when they get back in.

    sadly, the irony is that this would definitely not go down well with the manager and i'd be accused of waisting time.

    want to smoke. do it on your own time!
  16. Id like them to add up all the unpaid overtime workers do aswell and compare that.
  17. I must admit i found the thread title with your name underneath it fairly amusing....

    Attached Files:

  18. Just the smokers and coffee hounds though?

    Smoking sucks just stop it:angel:
  19. I can see what you mean, but If you're good at your job and effective when you're actually seated at your desk it shouldn't be a problem. In my office we have a mothers club who spend half their day in the kit hen making coffee and talking about... Absolutely nothing at all. Yet we're not allowed to smoke. Meh.
  20. I'm hearing ya, Will. It should be swings and roundabouts. Just because you sell your labour to someone, doesn't mean they own you. Anyone know F. W. Taylor? Scientific management? Capitalism would grind to a halt in ten minutes if that stuff were true.