John MacDonald: What To Do About The Illegal Tobacco Trade Canterbury Mornings With John MacDonald podcast

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John MacDonald: What to do about the illegal tobacco trade

12h ago 5:44

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Here’s a stat for you: 25 percent of cigarettes sold in New Zealand are from the black market.

They’re being smuggled into the country and criminals are making millions selling them on Facebook Marketplace and construction sites. All over the place. And you probably don’t have to go far to find a dairy selling them, either.

That figure has been put out by the tobacco industry in New Zealand. Although, there was an expert saying this morning that he reckons it’s not quite as bad as the tobacco companies are saying.

Either way - whatever the figure actually is - there are smokers balking at the cost of a packet of cigarettes and pouches of tobacco and they’re quite happy to buy the illegal stuff.

And I reckon the time has come to have a re-think about how we’re dealing with cigarette smoking.

Because the approach that’s been taken so far - aside from treatment programmes and all that - has largely been about punishing people in the pocket if they want to smoke.

More and more taxes, to the point where people are paying a small fortune. And, if we want to try and reduce the amount of illegal tobacco trading going on, then I think we need to think whether piling more tax on tobacco is worth it.

I don’t think it is. I’m not saying that we should make cigarettes cheaper - but I don’t think we should make them more expensive than they are now.

Because, if we do, then the illegal trade is going to grow even more and that will mean less tax revenue for the Government through the legitimate tobacco market.

The thing too about not adding more taxes to ciggies and tobacco, is that it would still keep the price out of the reach of people like teenagers. People who could become the next generation of smokers.

I was talking to someone who said their partner used to make a special trip into town to buy tobacco from a dairy in Christchurch that was selling pouches that were about $20 cheaper than what the legitimate stuff was going for.

And they were saying that their partner would go into the dairy, ask if they had any of the cheap stuff and, sure enough, reach into the drawer and out it would come.

It was worth the drive into the city to get it, apparently.

Customs is saying today that these groups are bringing truckloads of the stuff into the country - mainly by sea - using what customs describes as “sophisticated smuggling tactics similar to the tactics used by drug smugglers".

It says they are serious criminals. Not just opportunists having a go because they’re worried about the price of tobacco”.

The expert from Auckland University who was on Newstalk ZB this morning says the solution is getting more people off smoking.

I agree. But I also think that’s your ideal scenario kind of thing.

Which is why I think the time has come to stop piling more taxes on cigarettes and tobacco. It’s done its job. Making cigarettes more and more expensive is just going to feed demand for the illegal stuff.

Which is ripping us off. Because with every packet of illegal cigarettes sold, there’s no tax revenue. Money that we could all benefit from.

And why would we continue to let that happen?

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John MacDonald: What to do about the illegal tobacco trade

Canterbury Mornings with John MacDonald

published 12h ago