Govt urged to raise tobacco taxes

The Rudd government must increase tobacco taxes if it is serious about preventative reforms in health care, the Cancer Council says.

Professor Ian Olver, chief executive of Cancer Council Australia, said tobacco addiction remained the nation's largest preventable cause of serious disease and death.

Prof Olver said he was hopeful media speculation about a significant increase in the tobacco taxes would become reality in the 2010-11 federal budget.

"Smoking is still the largest preventable cause of cancer death and disease in Australia, and increasing the price of tobacco products is the best way to encourage smokers to quit," Professor Olver said in a statement on Wednesday.

"If the Government is serious about disease prevention as a key part of healthcare reform, it must increase the price of tobacco products in the next budget.

"This would reduce tobacco disease burden and also help to fund prevention programs like tobacco control and bowel cancer screening."

News Ltd reports indicate the federal government was considering a hike in tobacco taxes to part-fund the $18 billion cost of its broader health reform agenda.

A $13.50 packet of cigarettes could be increased to $20 staggered over three years, according to reports.

It also said Australian tobacco taxes had lagged the developed world, standing at 68 per cent compared to 75 - 80 per cent for comparable countries.

The speculation also comes as a minority of petrol stations, corner stores and other retail outlets continue to flout the law on cigarette sales to the young.

A compliance operation involving more than 70 tobacco retailers in northern NSW found almost 10 per cent would sell tobacco products to children aged 14 and 15 years.

"A small percentage of retailers neglected to ask for identification and sold cigarettes to minors," said Hunter New England Health Environmental Health Manager Philippe Porigneaux.

"Currently two businesses have been prosecuted and fined for failure to comply with the legislation."

Businesses in NSW risk fines of up to $110,000, or $11,000 for individuals, for selling cigarettes to those under 18.

Mr Porigneaux said it was important to take action against these outlets as research showed 90 per cent of long-term smokers began their habit in their teens.

"Nicotine dependence is established rapidly, even among adolescents, and preventing young people from commencing smoking will reduce smoking deaths and illness and the associated costs in the long-term," Mr Porigneaux said.