Cigarette prices to rise again

The price of cigarettes will rise significantly in this month's budget. A series of steep tax excise hikes have been so successful over the past two years in persuading people to give up smoking that the Maori Party is understood to have successfully lobbied the Government for such hikes to continue. Sue Lindsay is one of those enjoying having more dollars in her pocket since she quit smoking. She says she gave up because of the cost and nothing else. “I gave up wholly based on price - the health issue never came into it for me, just the cost increase did it,” says Ms Lindsay.

When the Government slapped a 10 percent excise tax increase on in 2010 - she gave up. “The price of a pack of smokes went up $1.50 and that was it for me,” she says. 3 News can now confirm the Government will bring in new excise tax hikes in the May 24 budget, further pushing up the price of cigarettes. Prime Minister John Key won’t say so publicly yet because it's a budget secret, but isn’t ruling it out. “The Maori Party has lobbied us hard to make further changes and I am not ruling it out,” he says. However 3 News can confirm it's going ahead. Maori Party co-leader Tariana Turia says they will stop at nothing to eliminate smoking.

“We will do whatever it takes to get a smoke-free Aotearoa,” says Ms Turia. 5.000 people a year die due to smoking related illnesses. The increase in excise tax has seen an increase in the number of people quitting. Over the last two years there have been three 10 percent increases to the price of cigarettes - a pack of 20 now costs more than $14. It's raised almost $200 million for the Government, which now collects more than $1 billion a year in excise tax. Ms Turia says that ultimately she would like to see cigarettes banned altogether.

“I cannot believe we continue to allow a product that kills to be sold here,” she says. So Bill English will hike the cost of a price of cigarettes again on May 24 - and if you're looking for a guide over how much - look at what's already happened. They've risen about $1.50 a year for the past three years, and it's likely the government will follow a similar path this time round.