theguardian.com
Australia to Increase Cigarette Prices Despite Illicit Trade Surge
Australia will raise cigarette prices by nearly 7% on September 1st, despite a surge in illegal tobacco sales and associated violent crime fueled by high prices.
- What is the immediate impact of the upcoming tobacco excise increase in Australia?
- The excise increase will raise cigarette prices by almost 7%, reaching $29.97 per pack of 20. This follows a near doubling of the smoking tax rate over five years, coinciding with a halving in tax revenue.
- How has the current price-led anti-smoking policy affected tobacco sales and crime?
- The policy has led to a significant rise in illegal tobacco sales, with estimates suggesting one-fifth of sales are now illicit. This surge in the black market is linked to a rise in violent crime, prompting calls for a policy change.
- What are the potential long-term consequences of continuing the current tobacco excise policy?
- Continuing the current policy risks further fueling the black market, undermining tax revenue, and potentially exacerbating the public health and safety problems associated with the illicit tobacco trade. Experts predict the policy's failure if the excise isn't lowered.
Cognitive Concepts
Framing Bias
The article presents a balanced view of the tobacco excise increase, including perspectives from health experts, economists, and government officials. However, the sequencing of information might subtly influence the reader. The initial focus on the price increase and its impact on the black market could prime the reader to view the policy negatively before counterarguments are presented. The inclusion of the ATO's estimate of illegal sales early on emphasizes the scale of the problem and might predispose the reader towards criticism of the policy. The later inclusion of counterarguments from health experts who support stronger enforcement weakens this initial framing but doesn't fully negate its impact.
Language Bias
The language used is largely neutral, although terms like "explosion in black market tobacco sales" and "prohibition-style approach" carry negative connotations. The description of the policy as "doomed to fail" is a strong statement reflecting a particular viewpoint. More neutral alternatives could be: "significant increase in illegal tobacco sales", "policy resembling prohibition", and "facing challenges in achieving its goals". The use of "boasted" in reference to the ABF's seizure of illicit tobacco might subtly suggest criticism of their self-congratulatory tone.
Bias by Omission
While the article presents various viewpoints, it could benefit from including data on smoking rates. A decline in smoking rates, even if accompanied by increased illegal sales, would support the government's claim that the policy is achieving its objective of reducing smoking. Additionally, exploring the economic impact of black market tobacco beyond lost tax revenue would offer a more comprehensive perspective. Further, the article could provide more detail on the nature and effectiveness of the "tough new laws" implemented in NSW and Victoria.
False Dichotomy
The article presents a false dichotomy between raising excise and cracking down on illegal sales as the primary responses to the issue. The problem is complex and likely requires a multi-pronged approach involving both increased enforcement and perhaps reevaluation of the excise rate. Presenting these as mutually exclusive options oversimplifies the situation.
Sustainable Development Goals
The article highlights the unintended consequences of Australia's high tobacco excise, including a surge in illegal tobacco sales and associated violent crime. This undermines efforts to reduce smoking rates and negatively impacts public health. The focus on price-led policy without sufficient enforcement has created a "public health emergency" according to experts. The increase in excise despite the clear negative consequences indicates a failure to adapt strategies effectively and prioritize public health.