Federal Budget 2016: smokers hit with massive price hikes

SMOKERS will suffer a double blow after being stung with massive hikes to cigarette prices and slashed limits to the purchases of duty-free smokes.

MILLIONS of smokers will suffer a double blow after being stung with massive hikes to cigarette prices and slashed limits to the purchases of duty-free smokes.

In a move aimed to deter tobacco use the Government announced it would hit smokers with four annual 12.5 per cent increases to tobacco excise and excise equivalent customs duties which will significantly push up the over-the counter price.

The price hike is expected to push the price of a packet of cigarettes up to $37.50 by 2020.

The limit to the purchase of duty-free cigarettes will also be slashed in half from July 2017 — dropping from just 50 cigarettes to 25.

The first hike to tobacco prices will arrive on September 1 next year and then follow every 12 months until 2020.

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It is expected this will push packet prices up from about $25 per pack to about $40 by 2020.

The move is expected to reap about $4.7 billion to the Budget.

Originally published as Federal Budget 2016: smokers hit with massive price hikes