Cigarette price hike 'will see kids go hungry' - Peters

  • 27/05/2016
Winston Peters
Winston Peters

New Zealand First leader Winston Peters says steep increases in the tobacco tax will see children go without food as their parents pay more to smoke.

The tax will increase 10 percent a year for four years, making the cost of a packet rise from about $20 now to $30 in 2020.

Peters has slammed the move, saying it is an "attack on the working people of New Zealand" who have "so few pleasures now".

"Frankly, if it's a legal product, why are they slamming working people so hard on that matter," Peters says.

"A lot of children will not be fed because of that."

The measure has found support from the Heart Foundation, although spokesperson Louise Ryan says more needs to be done.

"I'm happy that we've got an increase but we are disappointed that it is only ten percent," Ryan says.

"There is very clear evidence that increased taxing helps reduce tobacco rates."

Labour has also welcomed the move, although Annette King says the extra $425 million in expected tax revenue needs to be spent wisely and not used to "make the deficit look better".

She said it should be put back into helping people stop smoking and other public health programmes.

"I don't want it to go into the consolidated fund for a tax cut. I want it to go into improving the health of New Zealanders," King says.

"We shouldn't let tobacco companies kill poor people."

About 550,000 New Zealanders are daily smokers and it kills about 5000 people a year.

Newshub.