THE federal opposition says if Labor hikes the tobacco tax again it won't be about cutting smoking rates but raising extra revenue to try to meet its promised budget surplus. There's speculation the government could increase the tobacco excise by 25 per cent in its upcoming budget update, called the Mid-Year Economic and Fiscal Outlook (MYEFO). Opposition health spokesman Peter Dutton says if that occurs it won't be about better health outcomes but rather trying to patch up "an ever-growing black hole".
"This is a government that strives now to find savings because they've wasted so much," he told reporters in Canberra on Thursday. "Yes, they'll talk about all sorts of extra revenue increases and cuts but whether or not they achieve a surplus in the end - well look at the fact they've delivered the four biggest deficits in our country's history over the course of the last four years." A spokesman for federal Health Minister Tanya Plibersek told AAP: "We don't commentate on MYEFO speculation." Labor hiked the tobacco tax by 25 per cent in April 2010 to try and cut the smoking rate by forcing up prices.
Asked on Thursday if the coalition would support another increase Mr Dutton replied: "We'll wait to see what the Labor party proposes and we'll respond at that time." The opposition health spokesman said the coalition first proposed increasing the excise to reduce smoking rates but Labor "seeks only to do these things because they waste money". Opposition Leader Tony Abbott believes the government will rush out MYEFO before the truth about declining revenues is exposed. "This is a government which I fear is utterly incapable of delivering an honest surplus," Mr Abbott told reporters in Melbourne on Thursday. In May, the budget was forecast at a $1.5 billion surplus in 2012/13, and projected to remain in the black for the next three financial years.
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