JohnS Posted March 24, 2016 Share Posted March 24, 2016 This topic serves as a kind reminder for our dear Australian BOTL's who are lumbered with a hefty excise with each Cigar Box purchase. Kudos to FoH for operating a business to Australians in such circumstances, in the last few years a few (other Australian tobacco) establishments have fallen by the wayside. For those unaware, the Federal Australian Government has increased the excise 12.5% on September 1st, 2013, 2014 and 2015. In addition, a Consumer Price Index increase occurs every March 1st. This year, the tobacco excise went up on March 1st by 1.2% from $AUD663.72 per kilogram to $AUD671.68 per kilogram. On September 1st, 2016 the tobacco excise will increase again by 12.5% to $AUD755.64. Source: https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/tobacco-excise/excise-rates-for-tobacco/ As an informal comparison, in Australian Dollars, on September 1st 2016 this will mean that an average box of Montecristo No.4/Bolivar Petit Corona will increase $17.75, an average box of Diplomatico No.2/H.Upmann No.2/Montecristo No.2 will increase $29.93, an average box of Cohiba Siglo VI will increase $27.28, an average box of H.Upmann Magnum 46 will increase $23.65, an average 50 Cab of Partagas Shorts will increase $31.31, an average box of Bolivar Belicosos Finos will increase $26.13 and an average box of Partagas Serie D No.4/ Ramon Allones Specially Selected/Cohiba Robustos will increase $24.47. 4 Link to comment Share on other sites More sharing options...
LordAnubis Posted March 24, 2016 Share Posted March 24, 2016 We need a DO NOT LIKE button !!! 4 Link to comment Share on other sites More sharing options...
joeruby Posted March 24, 2016 Share Posted March 24, 2016 Blatant money grab. $671.68 p/kg is just crazy and $755.64 p/kg in 5 months time is nothing more than theft, and for what? Purchasing a legally available product. Together with lower currency exchange rates, they are literally asking us to bend over just because you want to have a cigar.. I fear the tipping point will be reached eventually, sooner for some and later for others. It just cannot keep going on like this.. 2 Link to comment Share on other sites More sharing options...
cosmoker Posted March 24, 2016 Share Posted March 24, 2016 Wow that sucks guys. I feel for you. But look on the good side. You do have readily available CC's Link to comment Share on other sites More sharing options...
MooseAMuffin Posted March 24, 2016 Share Posted March 24, 2016 Since I'm not in the land of Oz, how do they justify taxing tobacco like that? Is there a campaign to decrease kids being able to smoke like there is here in the US? I just don't get how anyone could justify taxing something like that. I'm not a businessman but, don't those taxes get passed onto the consumer? Which then lowers the amount of that product that the consumer buys which then kills sales then killing business/jobs etc? Maybe I'm wrong. Link to comment Share on other sites More sharing options...
Popular Post mgravito Posted March 24, 2016 Popular Post Share Posted March 24, 2016 This is why, fellow Americans, even if you don't smoke NC you should support the CRA here in the US. There's no doubt in my mind that they will tax cigars until we're left in the same predicament as our friends in Australia. Bottom line: if we give them in an inch they WILL take a mile. 5 Link to comment Share on other sites More sharing options...
Scrubber Posted March 24, 2016 Share Posted March 24, 2016 I just don't get how anyone could justify taxing something like that. I'm not a businessman but, don't those taxes get passed onto the consumer? Which then lowers the amount of that product that the consumer buys which then kills sales then killing business/jobs etc? Maybe I'm wrong. You are right. There are plenty of cigar retailers who have closed up in the past 5 or so year due to the increased taxes and subsequent decline in sales. Cigarettes are treated the same as cigars. However, many people who smoke cigarettes simply buy the illegally imported ones for a fraction of the price. It has created a huge black market but the official statistics show a decline in people smoking because they are no longer purchasing them legally so the government can claim the tax increases are working. It's a crazy situation but unfortunately I can't see it ever being reversed. Sent from my iPhone using Tapatalk 1 Link to comment Share on other sites More sharing options...
Zigatoh Posted March 24, 2016 Share Posted March 24, 2016 Surely killing sales is the point? In fact that's how politicians would put it. The simple theory is make it more expensive and less people will do it. It's a deterrent. I can see it working too, how any teenagers can afford to start smoking at 10+gbp per 20 christ knows!? Link to comment Share on other sites More sharing options...
MooseAMuffin Posted March 24, 2016 Share Posted March 24, 2016 You are right. There are plenty of cigar retailers who have closed up in the past 5 or so year due to the increased taxes and subsequent decline in sales. Cigarettes are treated the same as cigars. However, many people who smoke cigarettes simply buy the illegally imported ones for a fraction of the price. It has created a huge black market but the official statistics show a decline in people smoking because they are no longer purchasing them legally so the government can claim the tax increases are working. It's a crazy situation but unfortunately I can't see it ever being reversed. That's rough/sad to hear. Not sure why some feel the need to "protect/nanny" others from personal health choices. On the other hand...technically FOH is a black market for me, which brings me to my question. If Rob makes FOH a black mart cigar retailer in Oz...what market does that make FOH for us here in the states? A dark black market? Link to comment Share on other sites More sharing options...
puro Posted March 24, 2016 Share Posted March 24, 2016 It's ridiculous over here. Still cheaper to import both cc and nc though. I've found trading helps keep costs down but you still have to start with some sort of inventory. I guess this is a good time to start stocking up on boxes (that's what I'm telling the wife anyway hahaha ) which I think will eventually well me anyway be priced out of by taxes. Start stocking up !!! 1 Link to comment Share on other sites More sharing options...
JohnS Posted March 24, 2016 Author Share Posted March 24, 2016 I guess this is a good time to start stocking up on boxes (that's what I'm telling the wife anyway hahaha ) which I think will eventually well me anyway be priced out of by taxes. Start stocking up !!! Yes, that is what we Aussies need to be mindful of. If you can stock up, do so sooner than later as taxes will only keep increasing it seems, for the immediate future. 1 Link to comment Share on other sites More sharing options...
joeruby Posted March 25, 2016 Share Posted March 25, 2016 Since I'm not in the land of Oz, how do they justify taxing tobacco like that? Is there a campaign to decrease kids being able to smoke like there is here in the US? I just don't get how anyone could justify taxing something like that. I'm not a businessman but, don't those taxes get passed onto the consumer? Which then lowers the amount of that product that the consumer buys which then kills sales then killing business/jobs etc? Maybe I'm wrong. That's exactly right Moose. Under the false premise of making us healthier and stopping kids from smoking cigarettes, the government here just keeps raising tobacco tax. It is in fact a penalty tax in disguise for choosing to smoke. How can someone be penalised when they haven't broken any law?? It really sucks for us and I know I will eventually be forced to give up due to cost. I try my best to stock up now but I know if 12.5% annual increases continue, as well as 10% GST and annual CPI increases on top of a tobacco tax that will be $755.64 come September 1st, then there can only be one outcome for me.. Link to comment Share on other sites More sharing options...
Waah954 Posted March 25, 2016 Share Posted March 25, 2016 All these years of tobacco companies making huge profits has come to an end and the government is having its turn to profit. Any day now it will be cheaper and more accessible to obtian any drug over any kind of tobacco product. Sent from my SM-G925I using Tapatalk Link to comment Share on other sites More sharing options...
Fuzz Posted March 25, 2016 Share Posted March 25, 2016 This topic serves as a kind reminder for our dear Australian BOTL's who are lumbered with a hefty excise with each Cigar Box purchase. Kudos to FoH for operating a business to Australians in such circumstances, in the last few years a few (other Australian tobacco) establishments have fallen by the wayside. For those unaware, the Federal Australian Government has increased the excise 12.5% on September 1st, 2013, 2014 and 2015. In addition, a Consumer Price Index increase occurs every March 1st. This year, the tobacco excise went up on March 1st by 1.2% from $AUD663.72 per kilogram to $AUD671.68 per kilogram. On September 1st, 2016 the tobacco excise will increase again by 12.5% to $AUD755.64. Source: https://www.ato.gov.au/business/excise-and-excise-equivalent-goods/tobacco-excise/excise-rates-for-tobacco/ As an informal comparison, in Australian Dollars, on September 1st 2016 this will mean that an average box of Montecristo No.4/Bolivar Petit Corona will increase $17.75, an average box of Diplomatico No.2/H.Upmann No.2/Montecristo No.2 will increase $29.93, an average box of Cohiba Siglo VI will increase $27.28, an average box of H.Upmann Magnum 46 will increase $23.65, an average 50 Cab of Partagas Shorts will increase $31.31, an average box of Bolivar Belicosos Finos will increase $26.13 and an average box of Partagas Serie D No.4/ Ramon Allones Specially Selected/Cohiba Robustos will increase $24.47. Correction, indexation happens twice a year, not just in March. Next one is in September. Link to comment Share on other sites More sharing options...
JohnS Posted March 25, 2016 Author Share Posted March 25, 2016 Correction, indexation happens twice a year, not just in March. Next one is in September. Yes, and I must correct the first 12.5% increase occurred in December 2013, not September 2013. I was reading the link below and I understand the increase in tobacco excise is in line with 'Average Weekly Ordinary Time Earnings' whereas spirits excise, for example, increases follow changes in the Consumer Price Index. These figures are based on quarter-yearly changes so the next indexation change is not yet available. http://www.border.gov.au/Busi/Tari/CPIo Link to comment Share on other sites More sharing options...
puro Posted March 25, 2016 Share Posted March 25, 2016 Yes, that is what we Aussies need to be mindful of. If you can stock up, do so sooner than later as taxes will only keep increasing it seems, for the immediate future.yep definitely the case Link to comment Share on other sites More sharing options...
Popular Post PigFish Posted March 25, 2016 Popular Post Share Posted March 25, 2016 .... freedom is the prime cost of government! A government large enough to tell you what is good for you, is large enough to make do what it thinks is good for you! -Piggy 7 Link to comment Share on other sites More sharing options...
btp1979 Posted March 25, 2016 Share Posted March 25, 2016 .... freedom is the prime cost of government! A government large enough to tell you what is good for you, is large enough to make do what it thinks is good for you! -Piggy I agree 100% Link to comment Share on other sites More sharing options...
sengjc Posted March 25, 2016 Share Posted March 25, 2016 Time to grow your own? Link to comment Share on other sites More sharing options...
dougincanada Posted March 26, 2016 Share Posted March 26, 2016 Ontario recently raised it's tobacco tax here along with alcohol. And now the feds are talking plain packaging. Even though the product is not allowed to be displayed in store. I like to go into my local BM store, but I am being priced by the government into lower quality sticks. I am considering going to the local native reservation to get product through the black and grey markets like many already do. I also plan to take more short trips to Cuba to stock up. Part of the scam is the more they curb legitimate consumption. The more they need to increase taxes to maintain their base income. Same reason our electricity rates go up when consumption is being reduced. Sent from my Lenovo K50-t5 using Tapatalk Link to comment Share on other sites More sharing options...
stigmata Posted March 26, 2016 Share Posted March 26, 2016 Is mostly the s Anglo counties that are this fascist about so many things in life Link to comment Share on other sites More sharing options...
MrGTO Posted March 27, 2016 Share Posted March 27, 2016 I'm working on my collection from a formula I figured out for myself to have enough boxes to smoke till I'm in my seventies. That's my way of giving the coming taxes the bird cause taxes do not go down! Link to comment Share on other sites More sharing options...
polarbear Posted March 29, 2016 Share Posted March 29, 2016 The tax hike is ok by me Means my cigar collection increases in value by 12.5% every September 1 Link to comment Share on other sites More sharing options...
stigmata Posted March 29, 2016 Share Posted March 29, 2016 Do you collect to smoke or to stare at? Link to comment Share on other sites More sharing options...
stigmata Posted March 29, 2016 Share Posted March 29, 2016 Double Link to comment Share on other sites More sharing options...
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