Abbott won't oppose cigarette tax

Opposition Leader Tony Abbott will not oppose the government's new anti-smoking
measures despite spurning it as a tax grab rather than genuine health reform.
He concedes the government's 25 per cent tax hike on cigarettes - and forced plain
packaging which is due to come into effect from July - could save lives.
"I'm not going to defend smoking and I'm not going to oppose the measure because it
might have some useful health spin-offs," Mr Abbott told the Nine Network on Friday.
"(The government's) tax measure will go through."
It means big tobacco companies are now on their own in resisting the changes, which
sparked a rush of sales late on Thursday as smokers hurried to beat the price rise.
There were reports of some spending up to a week's wages in an effort to stockpile.
Tobacco companies such as Imperial Tobacco Australia say they are still considering
their legal options in the move to standardise packaging, which they say is an
assault on their intellectual property rights.
Prime Minister Kevin Rudd wants to take away their last available promotional pitch
by introducing plain packets in what he's lauding as a world-first move.
The move has given the government - under attack for recent turnarounds on emissions
trading and childcare centres - a welcome run of positive headlines in the
international media.
But at home, it continues to weather continuing criticism about the rush with which
it announced the changes.
Mr Abbott labelled the cigarette excise a hurriedly introduced "panic tax" ahead of
the May 11 budget.
The tax increase is estimated to deliver an extra $5 billion into government coffers
over four years.
Treasurer Wayne Swan addressed concerns the tax will hit poor communities the most.
"It's not regressive if it kills you," he told Fairfax Radio.
The former smoker said the rise was not about raising revenue, even though the money
will be directed towards the health system.
"We hope more people give up smoking and we would hope that we don't necessarily
collect the revenue, because we come to this from a health perspective," he said.
Mr Abbott has rejected the idea of refusing donations from tobacco companies. "I
don't see why, if they want to make a donation, we should not accept it," he said.
Federal frontbencher Anthony Albanese had labelled Mr Abbott a "hypocrite" and
called on him to ban the Liberal Party from accepting donations from tobacco
companies.
Mr Albanese said Mr Abbott could not have it both ways.
"He wants to talk tough when it comes to smoking but in the meantime he's happy to
stuff his pockets with donations from big tobacco," Mr Albanese told reporters in
Perth on Friday.
"Phoney Tony can't have it both ways - he can't be on the payroll of big tobacco but
allegedly be concerned about the impact of smoking.
"(He) needs to rule out today any further donations from big tobacco towards the
Liberal Party of Australia.
"The Labor Party did this some time ago.
Special Minister of State Joe Ludwig also called on the Liberal Party to dump
tobacco donations.
The federal Liberal Party received "at least $235,060 from large tobacco firms (in
2008-9), including $132,460 from Philip Morris and $102,600 from British American
Tobacco", he said in a statement.
"Tony Abbott needs to come clean about how much influence British American Tobacco
has purchased in the Liberal Party," Senator Ludwig said.
"The only way the Liberal Party can offer credible policy on tobacco-related issues
is to immediately declare that they will stop receiving tobacco donations."



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