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Cutting duty-free cigs no deterrent: BATA

http://news.ninemsn.com.au/national/8419233/cutting-duty-free-cigs-no-det
errent-bata

Cutting duty-free cigs no deterrent: BATA

13:23 AEDT Tue Feb 14 2012

One of the world’s biggest tobacco products makers says dropping the
duty-free cigarette allowance for travellers arriving in Australia won’t
deter smokers.  (they hope)

British American Tobacco Australia (BATA) says the federal government
would be financially better off by focussing on stamping out illegal
tobacco sales by organised crime gangs, which costs up to $1.1 billion a
year in revenue. (so BAT can make more profit)

The federal government is believed to be planning to remove the duty-free
exemptions that apply to tobacco sales at Australia’s airports for
in-bound travellers.

The move could deliver the government up to $300 million a year in extra
revenue from tobacco products excises.

But BATA says travellers will buy their tobacco in other countries to
avoid the 70 per cent excise upon return. (??)

“Financially it’s a no brainer,” BATA spokesman Scott McIntyre said on
Tuesday in a statement.

“Rather than targeting the hip pocket of Australian and international
tourists, the government could remove a large income source from
organised crime gangs.”

At present, the tax-free allowance for in-bound travellers over 18 years
is 250 cigarettes, or 250g of tobacco product.

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