Higher tax on cigarettes likely

Wayne Swan believes that a rise in the Federal tax on cigarettes would receive wide support.

“I think a lot of people would be supportive of that,” the Treasurer said in a radio interview yesterday.

He differed sharply from the Federal Finance MInister, Linsday Tanner, who had previously attacked Malcolm Turnbull for proposing such a rise, saying the Opposition Leader’s suggestion amounted to asking the poor to subsidise a tax break the rich emjoy on private health insurance.

Mr Swan,said, though, that the means test, the Federal government has now placed on the private health insurance rebate would help  to  fund  pensions, over the long term.

That was good policy, Mr Swan said.

But the matter won’t rest there.

The Treasurer also said that the government would look at rasing the present excise on cigarettes, when the results of the Henry review of Australia’s tax system are known.

That is expected to be late this year.

“We’ve said we will have a  look at it in the context of the Henry Review,” Mr Swan said.

“We are already on the record, unlike Malclm Turnbull, of supporting changes in taxation, when it comes to vital public health issues like alcopops,” he added.

What further hints do your need?

Quit now.  Save a packet. And, incidentally, your health.