Smokers take tobacco tax hike in stride

Taranaki smokers are still puffing away on cigarettes, with many unaware of the rising cost of their habit.

A 10 per cent increase in the price of cigarettes and roll-your-owns which came into force on January 1 is having little effect on retail sales in Taranaki – and those consuming.

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When the Taranaki Daily News surveyed smokers around town yesterday, many people said they did not know about the hike, and that it would still not make them quit.

Louise Spice, 36, has been smoking since she was 14, and said while she knew it was anti–social, it was incredibly hard to give up.

"My closest friends all smoke and I wouldn't say any of them would be worried about the cost. I didn't even know about it."

Owner of Snax in the City, Dragon Cai, said he had to explain to customers why the price had increased.

"They knew last time, but not now. Maybe people will give up because it's too expensive, but it's too soon to tell."

The 10 per cent increase in the tax on tobacco was the second of three jumps, and takes the cheapest pack of 20 cigarettes from about $10 to $12.

The tax was first increased last May and another 10 per cent rise is planned for January 2012.

John Gray, owner of Merrilands New World, said the supermarket had seen no effect on sales from the tax increase.

"They've done it for a reason, but I don't think it has stopped people from smoking as yet. Maybe for the next generation it will, but the older, tried and true smokers, it won't affect them."

It remains to be seen if those smokers will take the hike in their stride, according to Kirsty McLay, owner of Brougham Barbers.

"We're still waiting on the reaction from people. Some of the increases are $6 more."

She said she would measure the effect on sales in a month's time, but it was unlikely to have a large impact on her business.

"We don't make a lot of money on cigarette sales, it's more of a service we're providing people."

Despite the apparent limited impact in Taranaki, the timing of the increase has triggered more smokers to make a New Year's resolution to quit nationwide, according to Quit Group.

Chief executive Paula Snowden said Quit Group had rostered more advisers on and had opened on New Year's Day to respond to increased numbers contacting the service.