Fed: Chop chop tobacco increasing smoking Philip Morris

AAP General News (Australia)
08-04-2000
Fed: Chop chop tobacco increasing smoking Philip Morris

Cigarette manufacturer PHILIP MORRIS says the fight against smoking in Australia is
being undermined by the illegal tobacco trade known as chop-chop.

The company's managing director JOHN SCOTT has told a Senate committee the combined
consumption of legal and illegal tobacco in Australia could soon be in growth for the
first time in many years.

The company has told the Economics Legislation Committee the illegal tobacco trade
is now conservatively 7.5 per cent of total sales in the country.

He said the impact on government revenues is estimated to be more than $300 million
and legitimate retail businesses not participating in the trade is also losing about $40
million.

Mr SCOTT says advice to the government by the public health community and anti-smoking
groups, to increase the price of cigarettes to reduce consumption is bad advice.

He says this taxation policy has been vigorously enacted and is now having a detrimental
effect by providing the opportunity for the illegal trade to flourish.

AAP RTV dep/mfh/wz/jn

KEYWORD: TOBACCO (CANBERRA)

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