Federal Budget to target Cigar smokers

[OZCUBAN]

People who use roll-your-own tobacco or smoke cigars might feel some pain after the budget.
Those products are set to be taxed more, bringing them into line with the tax rates on cigarettes.
The change will be phased in over the next four years, and will contribute $360 million to the budget over the same period.

After years of massive tax hikes on our cigars the pain is set to increase its the only time I wish I was American were Tobacco tax and a customs department seem to be non existent ?

[OZCUBAN]

Seems like it maybe a continuation of the 12.5% increase very 12 months it's fast becoming a rich mans hobby and that's wrong because cigars and all comradary and laughter they bring is CLASSELESS 

[CaptainQuintero]

Do not fret comrades! The proletariat will be a more happy and efficient workforce without the corrupt and bourgeois tobacco weed! Tractor production will increase even more when this decadent addiction is purged!

[JohnS]

10 hours ago, OZCUBAN said:

Seems like it maybe a continuation of the 12.5% increase very 12 months it's fast becoming a rich mans hobby and that's wrong because cigars and all comradary and laughter they bring is CLASSELESS 

Cheers Steve for that confirmation. I was looking for specific information last night, from the budget, and couldn't find any. 

Even more interesting was the fact that the government said NOTHING about taxing GST on overseas retailers for purchases under $1000. They were hoping to pass legislation on that by July 1st, 2017. Don't think that will happen (by then).

[OZCUBAN]

Thanks John I haven't seen that written anywhere either it's just what I have been told either way we're screwed? 

[gweilgi]

12 hours ago, OZCUBAN said:

People who use roll-your-own tobacco or smoke cigars might feel some pain after the budget.
Those products are set to be taxed more, bringing them into line with the tax rates on cigarettes.
The change will be phased in over the next four years, and will contribute $360 million to the budget over the same period.

Hmmm ... does that figure of $360 million include the loss of tax revenue due to lost business?  When merchants lose trade and have to lay off staff because customers either stop buying or start illegally importing from overseas, the resultant loss of taxes is a net cost to the budget.  

[stunod]

Exactly how much tax is there on cigars in Australia.

[JohnS]

9 minutes ago, stunod said:

Exactly how much tax is there on cigars in Australia.

Currently, it's  $AU771.60 per kilogram of tobacco and it will increase by 12.5% per year every September 1st for the next four years.

Also, as if there's not enough tax applied already, every March 1st there's a Consumer Price Index component added.

https://www.ato.gov.au/Business/Excise-and-excise-equivalent-goods/Tobacco-excise/Excise-rates-for-tobacco/

[stunod]

4 minutes ago, JohnS said:

Currently, it's  $AU771.60 per kilogram of tobacco and it will increase by 12.5% per year every September 1st for the next four years.

Also, as if there's not enough tax applied already, every March 1st there's a Consumer Price Index component added.

https://www.ato.gov.au/Business/Excise-and-excise-equivalent-goods/Tobacco-excise/Excise-rates-for-tobacco/

And if you buy a box of cigars ,say from Switzerland i.e. Geneva duty free, I assume it"s not duty free when it gets to you ?

[Dimmers]

just awesome 

[JohnS]

1 minute ago, stunod said:

And if you buy a box of cigars ,say from Switzerland i.e. Geneva duty free, I assume it"s not duty free when it gets to you ?

It all depends if it gets picked up at customs. If it does, then the duty is applied. The customer gets a notification in the mail to settle the duty via credit card payment, usually. Then the box is released.

What's incredibly hypocritical, from a vendor point of view, is the requirement to plain package cigars for Australian retailers, yet if you import your own cigars from overseas privately, there is no legal requirement to do so. The Australian Government is just interested in collecting the monetary duty.

[Sean3]

Sorry to all our Aussie brethren out there.  I know nothing of your politics...is this a money grab or are they trying to drive tobacco products out of existence all together?

[OZCUBAN]

Both I think Sean ?

[gweilgi]

30 minutes ago, Sean3 said:

Sorry to all our Aussie brethren out there.  I know nothing of your politics...is this a money grab or are they trying to drive tobacco products out of existence all together?

It's a money grab under the guise of "public health" concerns.  They have found a perfect revenue source where ever larger increases in tax allow politicians to portray themselves as acting inner best interest, with no blow-back to their careers at the ballot box for their raids on our wallets.  At the same time, any future increase in healthcare spending or loss of tax revenues if and when smoking is finally stamped out is a problem for future generations of politicians, so why should they care.  

[jmimac351]

14 hours ago, OZCUBAN said:

After years of massive tax hikes on our cigars the pain is set to increase its the only time I wish I was American were Tobacco tax and a customs department seem to be non existent ?

While taxes in the States aren't at Aussie and Canuck levels, there are definitely threats happening here - especially over the last several years.  Obama's punitive FDA launched an offensive on premium cigars to "deem" them as subject to their authority based on prior misguided legislation for another matter.  Fortunately, Cigar Industry groups fought back and created Cigar Rights of America. The hope is that with a more friendly Administration this FDA overreach can be stopped.  Many members of Congress on "both sides of the aisle" are supportive of CRA and are being lobbied heavily.  Although this doesn't apply to Cuban cigars, there are people not going away without a fight.  

It's one thing that I've been puzzled by based on my perception of Aussies... a common sense, frank, and self-reliant culture - governed by a Nanny State.  It doesn't add up. Perhaps my perspective is wrong.  

Good luck.  Kick ass. 

https://www.cigarrights.org/news/160715-FDA-Lawsuit.html

 

[Sean3]

1 hour ago, gweilgi said:

It's a money grab under the guise of "public health" concerns.  They have found a perfect revenue source where ever larger increases in tax allow politicians to portray themselves as acting inner best interest, with no blow-back to their careers at the ballot box for their raids on our wallets.  At the same time, any future increase in healthcare spending or loss of tax revenues if and when smoking is finally stamped out is a problem for future generations of politicians, so why should they care.  

Is there anything sleazier than a politician?

[Fuzz]

3 hours ago, JohnS said:

Currently, it's  $AU771.60 per kilogram of tobacco and it will increase by 12.5% per year every September 1st for the next four years.

Also, as if there's not enough tax applied already, every March 1st there's a Consumer Price Index component added.

https://www.ato.gov.au/Business/Excise-and-excise-equivalent-goods/Tobacco-excise/Excise-rates-for-tobacco/

Correction, John. CPI increases for tobacco occurs twice a year; now March & September each year, previously in Feb & August. The 12.5% increase in September is an additional gift bestowed upon us by the Govt.

 

1 hour ago, Sean3 said:

Is there anything sleazier than a politician?

Secondhand car or insurance salesmen? The creepy old DJ who has been working in the same strip club for the last 30 years?

[Auspaul]

Duty free allowance drops to 25 cigarettes on first of July 2017 they will be increasing penalties for illicit tobacco and more support for border force. Can recall the 2014 budget where Hockey and Cormann smoked big cigars and said the age of entitlement is over then labelled people lifter's and leaners

[gweilgi]

2 hours ago, Sean3 said:

Is there anything sleazier than a politician?

Telemarketers selling to Alzheimer's sufferers?

Cult leaders?

 

[LordAnubis]

Might as well just quit. Heroin is cheaper.

[Shaunster]

Seems they are just going ahead with the endgame over there, a tobacco free country. Nobody really cares about cigars, and by now most of the population are indoctrinated to believe all tobacco is the devil. 

[Auspaul]

40 minutes ago, LordAnubis said:

Might as well just quit. Heroin is cheaper.

Reminds me of a few years ago at the pub mate made a comment to the barmaid of the cost of beer now and its getting expensive to get pissed she commented you might not believe it but its easier and cheaper to get Meth in this town,

I really don't know who to vote for

[Leopolis Semper Fidelis]

Nanny state in New Zealand wants to make that country "smoke-free" by 2025, so the tobacco taxes keep going up and up and up.  It appears most cigar imports entering through the mail system there (even as few as three cigars) are hit savagely with tax, inspection duty, agricultural products duty and anything else they can think of levying - with GST added to the mix.  Of course it is done in the name of protecting the populace and having their good health at heart.

[Fuzz]

1 hour ago, Leopolis Semper Fidelis said:

Nanny state in New Zealand wants to make that country "smoke-free" by 2025, so the tobacco taxes keep going up and up and up.  It appears most cigar imports entering through the mail system there (even as few as three cigars) are hit savagely with tax, inspection duty, agricultural products duty and anything else they can think of levying - with GST added to the mix.  Of course it is done in the name of protecting the populace and having their good health at heart.

Good luck with that "smoke-free by 2025" idea. NZ uses more hash than we do!

[OZCUBAN]

The Irony is that pot is probably cheaper and not taxed ?