Tax

High tobacco taxes linked to crime spike

Another convenience store worker has been attacked in what has become an increasingly common occurrence. Criminals, lured by the sky-high value of cigarettes due to the government’s Tobacco Excise, are robbing local shops to get their hands on them. It has become “tobacco first then cash” according to Jeff Rogut, chief executive of the Australasian Association of Convenience Stores. Tobacconists in Queensland have also expressed concerns for the safety of themselves and their stores, with one man’s shop being hit twice in a week by thieves targeting cigarettes. New Zealand has faced the same crisis, with aggravated robberies soaring by 87% between 2016 and 2017 and then-acting Prime Minister Winston Peters criticising high tobacco taxes in his country for much of that rise.

This hardly comes as a shock. History shows that aggressively taxing a product is a surefire way to create a black market and contribute to increased … Read the rest

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