Read The Times Australia

Daily Bulletin

How might Big Tobacco react to a rise in cigarette excise?

  • Written by: The Conversation Contributor
image

There now appears to be bipartisan recognition in Australia of the political stench of cigarettes. Labor governments have taken a dim view of smoking for at least a decade, but now even the Liberal Party is joining the attack.

As the campaign donations from the tobacco industry dry up, the Turnbull government has set its sights on a product that, thanks to its unfortunate tendency to kill off its natural constituency, makes for an obvious target. The government is expected to announce a rise in tobacco excise in the coming federal budget.

The current taxation debate is just a small part of a much wider effort to curb smoking rates. And with every successful legislative change in Australia, other nations are increasingly emboldened to take on an industry once considered too politically powerful and dangerous.

Australia’s plain-packaging laws are already viewed as a model for Ireland, the UK and France. Its taxes – among the highest in the world – have routinely been shown to cut smoking rates to historic lows. Its citizens now overwhelmingly accept bans on passive smoking.

Still, Big Tobacco will never give up its fight against regulation and taxes. It knows that for every day it delays change, it saves millions in profits. As such, it relies on tactics of deceit, delay and frustration, which it has developed and refined over half a century.

But it also knows that it can’t make its argument directly. Instead, it relies on rhetorically gifted proxies. To that end, Big Tobacco has collaborated with a global web of friendly lobby groups, researchers and free-market think-tanks, such as the Institute of Public Affairs (IPA). Each proxy is expected to push an agenda, such as suggesting that research on tobacco smoke is “junk science” and critics of tobacco are “biased”.

Once the research has been completed, there are always media outlets willing to dutifully repeat the industry’s claims, which are used to build a narrative of the “nanny” state repeatedly kicking the mature and informed smoker.

Capitalism and freedom – for smokers

In the West, the freedom-of-choice argument has been at the heart of most of Big Tobacco’s campaigns since the 1970s. It’s a powerful idea, but it deliberately ignores the issue of child and passive smoking.

As such, Big Tobacco primarily relies on the argument that the state is trampling on personal liberty. When plain-packaging laws were being debated in Australia in 2010 – the first such laws in the world – the industry and its allies leapt into action.

The resultant advertising campaign was designed to portray the government and anti-smoking campaigners as part of a “nanny state” that was determined to tell adults how to live their lives.

An anti-plain-packaging advertisement.

(Stuck in) Nineteen Eighty-Four

The liberty argument may be a legitimate point of debate. But Big Tobacco also contended that plain-packaging laws would fail to deter people from smoking.

The IPA pointed out the tremendous monetary value of packaging, and Australia’s vulnerability to legal challenges that would cost billions of taxpayer dollars.

But, later, a senior IPA member released a study that showed spending on tobacco products had – controlling for other factors – increased following the plain-packaging laws’ passage.

Writers in the Murdoch press reported both stories, unaware of their contradictory nature.

Media Watch on how the plain-packaging studies were reported.

(Big Tobacco’s) crime and punishment

Another line of attack suggests that high taxes on cigarettes cause crime.

In 2015, the tobacco industry commissioned KPMG to study the effects of cigarette taxes on smuggling and black market sales. Unsurprisingly, the report said exactly what the tobacco industry wanted it to – going so far as to suggest that one in seven cigarettes smoked in Australia were smuggled.

As with all industry-funded “research”, government critics were keen to regurgitate the findings.

This is a distraction tactic. It is true that very high taxes, or a prohibition, will create a black market. It is also beside the point of plain packaging – which is to reduce smoking, while allowing for some free choice, provided it is informed and adult. Such laws have proved successful to that end.

The tobacco industry, insisting that we look anywhere but at them, wants to repaint a health issue as a law-enforcement one.

However, the tobacco industry is deeply hypocritical on smuggling. It systematically floods key foreign markets with its product, in turn facilitating smuggling in Western markets. The tactic allows it to claim plain-packaging laws and taxes cause the same crime it creates.

The heart of darkness

Big Tobacco fights in this way because of what it stands to lose.

So, the industry of death continues to exact its toll. It knew that people died from smoking and passive inhalation decades before it conceded the point. It knew of children taking up smoking – it even helped them do so. It complains of smuggling while being the biggest source of the problem.

Big Tobacco does these things because it is afraid. Imagine the profits lost should other countries adopt similar messages. Tens of billions every year are at stake.

In the tobacco wars, the strategic importance of Australia is critical. Big Tobacco will go to extraordinary lengths to ensure moves to quell smoking fail.

Authors: The Conversation Contributor

Read more http://theconversation.com/how-might-big-tobacco-react-to-a-rise-in-cigarette-excise-57895

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How Long Does Interstate Freight Take in Australia?

If you have ever arranged for stock, equipment or materials to travel from one Australian state to a...

How AEC Firms Can Scale Faster Without Sacrificing Project Quality

Growth presents a fundamental dilemma for architecture, engineering, and construction firms: expan...

What Makes an Aesthetic Clinic Worth Going Back To?

Trying an aesthetic clinic for the first time can feel like a bit of a gamble. You can read review...

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...