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  1. #1
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    Why won't Australia embrace the idea of e-smokes?

    I have a heavy background in crunching numbers, counting beans, and smoking ciggies. I've recently made the switch to e-cigs and I don't see myself looking back anytime soon. I am writing up this post to illustrate a point.

    'Tobacco in Australia' reckons that the Aussie government made in excess of 6.5 billion in 2005-06 in tax revenue. (1)
    Keep in mind that is well before the price hikes that have happened in the last few years.

    Let's work with the number that 70% of your purchase price on a pack of smokes is tax. (2) So total sales in 2005-06 on smokes would be approximately 9.29 Billion.

    The 'Non Smoker's Movement of Australia' figures there is approximately 5.3 million smokers in Australia. (2)

    So each smoker is contributing on average $1752.83 per annum to smokes, $1226.98 of which is tax revenue. So we spend about $33.71 per week on smokes according to these statistics. Anyone think they may have spent more than that?

    Moving on!

    Let say, hypothetically, every last smoker in Australia switched to e-smokes. Now lets work with the following numbers:

    $100 initial investment and hardware replacement per annum
    $6 per week on e-juices ($312 per annum)
    So each e-smoker now pays $412 per annum to maintain the habit ($2.1 Billion Australia wide), of which only 10% (GST) is taxable. Government tax revenue is now 10% of $2.1 Billion ($210 Million).


    Imagine for a moment you are a business owner and a new, competing product came into the market that threatened your revenue by 5%. How would that make you feel? 10% loss? 25%? What would do if you were facing projected 50% losses?

    E-Cigarettes represent a potential cut in tax revenue in the tobacco sector of 99.97%. You can bet your bottom dollar the government is very aware of this projection.

    ELECTRONIC CIGARETTES POSE A SIGNIFICANT AND REAL THREAT TO THE TAX REVENUE OF THE TOBACCO SECTOR.


    The Cancer Council of NSW reckons the bill on social smoking is $31.5 Billion per annum. (3)

    Surely, that number would be significantly reduced by e-smoking. Why wouldn't the government embrace the technology and promote it? If they feel the product is dangerous, make a new one that meets safety standards. Isn't the health of the populous of Australia more important than the tax revenues?

    I understand there are some other arguments against it, so it's worth while to read through reference (2) for these.


    (1) http://www.nsma.org.au/facts/figures.htm
    (2) http://www.tobaccoinaustralia.org.au...o-the-economy-
    (3) http://www.cancercouncil.com.au/edit...asp?pageid=371


    I end with a comparison: Imagine if there was an environmentally friendly, highly abundant and less expensive fuel source than oil. Surely those in the oil industries would stand to lose a heap of money should that ever come into effect. Sure is a good thing nothing like that exists (*ahem* hydrogen, but that's a rant for another forum).

  2. #2
    Sik
    Sik is offline
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    dont forget the lost revenue of pharmaceutical companies where people keep trying over and over again to quit.

    Smoking and Giving it up is big business

    Nice post
    Current Vape: Variable Wattage mod, EPM Boge tanks, Something Fruity

  3. #3
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    I agree! Loads of $$$ made there. I don't even go into the fact that as the number of smokers in Australia goes down, the price of cigarettes goes up as does the tax rate on the product. It would seem quite obvious that they are very fond of keeping those numbers high.

    I wonder how Uncle P.J. and Whinnie feel about e-smokes?

  4. #4
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    What we are dealing with here is a Mindset as well as Money. These paper shufflers love regulations and rules-rules gove their lives a floor and ceiling and get them off to sleep.Rules and Regulations are being flouted here and that makes them ANGRY!
    The public good and public health are a long way down the list of priorities, I feel. QH for one has amply demonstrated that people's
    health is not their first objective.
    Truly I doubt there are enough of us vapers to make much difference to the money issue, surely.

  5. #5
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    Yes that's true, we'd hardly make a dent. But we pose a potential threat.

    Patches and gums and ventilators and all that other crap doesn't work. The companies that make them know that, and the authorities know that. Clever marketing keeps people coming back to them.

    But what if, and it's a big 'what if'; What if e-smoking could became the new socially acceptable norm?

    Unfortunately, not to sound like a defeatist, the legislation to market e-cigs will never exist because of the social stigma that surrounds ANY form of smoking favours the rule makers. Thus the threat is cauterised.

    The only thing we can do, and it happens to be the most powerful form of marketing available, is WORD OF MOUTH. Tell your friends, family, travel agent, veterinarian, taxidermist, bowling club, ex-girlfriend's cat, EVERYONE that could benefit from making the switch. And what do you get in return? The knowledge that you're making Australia a bit healthier. I think there is honour in that, in a world that seems to have forgotten the meaning.

  6. #6
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    It's SO wrong and makes me SO angry.
    Why is it ok to make methadone available for heroin addicts and yet it is such a terrible thing for smokers to have a safer alternative?
    It really is all about the money and that is just appalling.

  7. #7
    Sik
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    Its not just about the money, but also the fact that e-cigs look like smoking. Part of the reason they are effective, yet sadly also part of the reason why the anti's get up in arms.

    It boggles the mind that New Zealand have already done the toxicity research and are currently conducting clinical trials into the efficacy while the Australian Health Authorities are sitting around scratching their asses saying that "there is no research". Well fucking get of your asses and conduct it then.
    Current Vape: Variable Wattage mod, EPM Boge tanks, Something Fruity

  8. #8
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    Yes!! How long will the "no research available" claim last before it goes stale? For me, about 5 seconds.

    Seems both NZ and the land of the free have one up on us.

  9. #9
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    The "no research available" claim is a by-product of bureaucracy - the organisations do not have the resources to research it themselves, and the organisations that are able to research it simply don't have the project sponsors in those organisations.

  10. #10
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    I just want to say to the meddlers paper shufflers and various shiny seats in the Government -unless you can offer us something that works, something that will actually help a lot more people than patches and gum, then you have no moral right to prevent us from trying to restore our health and save our lives in the only way many of us have found. We are hurting no one and asking for nothing.
    Offer us something else thats better and we'll use that instead.
    If not STFU! and leave us alone.

 

 
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