New Zealand has abandoned its plan to implement a “generation ban” on smoking in order to use the funds for tax cuts.


The newly elected government in New Zealand plans to eliminate the nation’s progressive law that prohibits smoking in order to fund tax reductions. This decision, according to health experts, is expected to result in a significant loss of lives and have devastating effects on the Māori population.

In 2022, a groundbreaking law was enacted in the country that implemented a gradual increase in the minimum age for purchasing tobacco products. This measure aimed to prevent individuals born after January 2009 from ever being able to legally purchase cigarettes. The legislation was implemented to prevent numerous deaths related to smoking and to save the healthcare system billions of dollars.

The law, believed to have influenced a proposal in the UK to gradually eliminate smoking for future generations, included several actions to deter smoking by making it more expensive and difficult to access. These actions involved significantly decreasing the permissible amount of nicotine in tobacco goods, restricting their sale to designated tobacco shops, and reducing the number of stores authorized to sell cigarettes from 6,000 to 600 across the country.

The regulations were originally planned to take effect in July 2024. However, in their coalition agreement with the New Zealand First party, the National party agreed to undo the changes, which include eliminating the need for de-nicotisation, removing restrictions on retail sales, and lifting the ban on generation.

The new finance minister, Nicola Willis, announced on Saturday that the measures would be eliminated by March 2024. The revenue generated from cigarette sales will be used to fund the coalition’s tax cuts. National had to come up with alternative funding methods for its tax plan after its coalition partner, New Zealand First, declined a plan to allow foreign buyers in the property market.

According to Willis on Newshub Nation, the Treasury’s pre-election fiscal update stated that implementing limitations on the sale of tobacco products and reducing the number of shops allowed to sell them would greatly decrease revenue for the government.

Returning to the additional sources of income and potential cost-cutting measures that will allow us to finance the tax cut, it is important to note that the modifications made to the smoke-free laws have had a substantial effect on the Government’s finances, resulting in approximately $1 billion in revenue.

Willis stated that Act and New Zealand First, the coalition partners, were determined to undo the limitations.

Christopher Luxon, the prime minister, stated that this change would prevent the emergence of a clandestine tobacco market and would deter criminals from targeting shops.

“According to Luxon in an interview with Radio New Zealand, having one store in a small town as the sole distributor of cigarettes will likely attract a significant amount of criminal activity.”

Luxon stated that his administration will persist in reducing smoking rates through educational efforts and implementing additional smoking policies.

However, the decision to reverse the policy has been met with surprise from public health professionals. They believe that it could result in the loss of 5,000 lives annually and disproportionately affect the Māori community, who have higher rates of smoking.

Professor Lisa Te Morenga, the head of Health Coalition Aotearoa, stated that this is a significant setback for public health and a substantial victory for the tobacco industry. This will lead to an increase in profits for the industry, but at the cost of lives in New Zealand.

According to Te Morenga, recent simulations have indicated that implementing the regulations would result in a cost savings of $1.3 billion in the healthcare system over the next two decades. Additionally, it would lead to a 22% decrease in mortality rates for women and a 9% decrease for men.

“Turning the tide on harmful products that are entrenched in society cannot be done by individuals, or even communities,” Te Morenga said. “It takes good – and brave – population-level policies.”

Hāpai te Hauora, the primary Māori public health organization, stated that the undoing of this decision will have a devastating impact on Māori communities.

According to CEO Jason Alexander, this action displays a lack of consideration for the opinions of the communities most impacted by the negative effects of tobacco, instead prioritizing financial gain.

Source: theguardian.com

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