New Tobacco Rate In Oz


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All governments are like crack addicts but tax revenue is there drug. The more they get the more they need to get more.


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On 8/31/2018 at 10:09 PM, MountainMilG said:

That is utterly bonkers.

What's the tax on a bottle of scotch?  A new truck?  Or is tobacco tax the worst example there?

I had a coworker who live in AUS for a year, he loved it.  Evidently I couldn't ever live there, but I will come and visit in the net couple years, just evidently not to buy boxes of cigars lol

Well a quick example is say a bottle of Whistle Pig 10 year old.

On line in the US this costs about $79.99 but in Australia, that same bottle is $180.00

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Now, now, Mika. Play fair. One is in USD, the other is in AUD. And sales tax has not been applied to the US online store price. Taking the 7.25% California sales tax, the price bumps up to $85.79. Then converting into AUD, the price becomes $123. And we haven't even taken into account shipping costs yet.

But let's call it $123 vs $180. Okay, it's still $60 higher, but at least we're comparing apples to apples.

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1 hour ago, Fuzz said:

Now, now, Mika. Play fair. One is in USD, the other is in AUD. And sales tax has not been applied to the US online store price. Taking the 7.25% California sales tax, the price bumps up to $85.79. Then converting into AUD, the price becomes $123. And we haven't even taken into account shipping costs yet.

But let's call it $123 vs $180. Okay, it's still $60 higher, but at least we're comparing apples to apples.

Another example then.  I have a liking for German schnaps, particularly apple and pear "obstler".  A 700ml bottle at Dan Murphy's will set me back AUD51.  In Germany, I can buy the same stuff in a 1-litre bottle for AUD18.60 ... including the local 20% GST.  A bottle of Nardini grappa that costs AUD46.70 in Italy (including the 22% IVA) will set me back AUD100 in Sydney.  

Let's not even talk about the Wine Equalisation Tax....

The tax take is just horrendous, wherever you look.  

As for tobacco, the last figure I have seen was $12 billion just in duties and excise, and if international comparisons are anything to go by, a 25% rate of lost revenue due to smuggling, counterfeiting and evasion would not be unreasonable.  We'd also have to add a few billion in revenue from tax on associated sales (ash-trays, lighters, sundry accessories etc), as well as corporation tax, local rates, and income tax paid by every one of the thousands of workers in the industry.  All in, a figure of $20 billion would not be too far-fetched.  If (or when) all that money stops flowing, the shortfall will have to be made up somewhere else because, let's face it, the Australian government is not exactly known for its ability to make do, cut back, spend less.  So income taxes will increase, or the GST will be lifted, or there will be new and exciting taxation opportunities on the next great health scare -- sugar in food, maybe, or red meat.  Or perhaps an environmental tax or two ... a $50 levy for every time we fire up the barbie, anyone?  

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27 minutes ago, gweilgi said:

Another example then.  I have a liking for German schnaps, particularly apple and pear "obstler".  A 700ml bottle at Dan Murphy's will set me back AUD51.  In Germany, I can buy the same stuff in a 1-litre bottle for AUD18.60 ... including the local 20% GST.  A bottle of Nardini grappa that costs AUD46.70 in Italy (including the 22% IVA) will set me back AUD100 in Sydney.  

Let's not even talk about the Wine Equalisation Tax....

The tax take is just horrendous, wherever you look.  

As for tobacco, the last figure I have seen was $12 billion just in duties and excise, and if international comparisons are anything to go by, a 25% rate of lost revenue due to smuggling, counterfeiting and evasion would not be unreasonable.  We'd also have to add a few billion in revenue from tax on associated sales (ash-trays, lighters, sundry accessories etc), as well as corporation tax, local rates, and income tax paid by every one of the thousands of workers in the industry.  All in, a figure of $20 billion would not be too far-fetched.  If (or when) all that money stops flowing, the shortfall will have to be made up somewhere else because, let's face it, the Australian government is not exactly known for its ability to make do, cut back, spend less.  So income taxes will increase, or the GST will be lifted, or there will be new and exciting taxation opportunities on the next great health scare -- sugar in food, maybe, or red meat.  Or perhaps an environmental tax or two ... a $50 levy for every time we fire up the barbie, anyone?  

And in the grand scheme of running a country 20 billion is sweet fa. It's daft.

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2 hours ago, Fuzz said:

Now, now, Mika. Play fair. One is in USD, the other is in AUD. And sales tax has not been applied to the US online store price. Taking the 7.25% California sales tax, the price bumps up to $85.79. Then converting into AUD, the price becomes $123. And we haven't even taken into account shipping costs yet.

But let's call it $123 vs $180. Okay, it's still $60 higher, but at least we're comparing apples to apples.

Some people have way too much time.... :rolleyes: ;) But still, $60 bucks is a fair whack different.

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On 8/30/2018 at 4:30 PM, Fuzz said:

I'm just hoping the Govt will accept my new "Tobacco Buy Back" scheme.

Back of the napkin (serviette, sorry) most of us would have at least 20-30k in duty alone sitting in our stash. My last boxes just arrived, kinda wishing I’d liquidated. 

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49 minutes ago, Duxnutz said:

Back of the napkin (serviette, sorry) most of us would have at least 20-30k in duty alone sitting in our stash. My last boxes just arrived, kinda wishing I’d liquidated. 

Shhhh!!!

We all have only a small amount of cigars, and the value is very little. The older they are, the lower in value, and they also go down in value once the box has been opened. Not worth telling a divorce lawyer about. :lookaround:

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48 minutes ago, Fuzz said:

Shhhh!!!

We all have only a small amount of cigars, and the value is very little. The older they are, the lower in value, and they also go down in value once the box has been opened. Not worth telling a divorce lawyer about. :lookaround:

... unless the vengeful soon-to-be ex-wife threw all your cigars on the barbie and set fire to them.  In that case, they are a hugely valuable collection containing irreplaceable items (discontinued and LE) the value of which must be deducted from the total which her lawyer is chasing you for.  

 

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Although we knew the hike is coming but looking at the price at today's 24:24.  That just made me sad...

I just hope oz govt look at US where cigar taxed at lower rate compare to cigarette.

This is a hobby not a crime.    

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10 hours ago, PigFish said:

Sorry mates!

Yet another political thread! Government 'stuff' means you bend over and take it like... well never mind, when it is your turn to pay the piper! Save the children, the whales, the rainforest.. you name it. It means higher taxes, bigger government, less freedom.

I say "save the freedom." No government program required.

-Piggy

The sad thing is they would probably need to form a committee and spend three years getting a report together.

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