David Farrar: The $300 million tobacco tax cut lie

Labour keep claiming that the Government gave the tobacco industry a $300 million tax cut. This was based on reducing the excise on heated tobacco by 50% to see if the price difference would move people form smoking tobacco to heating it. The difference is huge in health terms – it is the combusting of tar in cigarettes that kills you. Heated tobacco is like vaping – not healthy, but better than smoking.

Dr Eric Crampton: Heated tobacco excise - some heat, and some light too

Imagine that someone invents a new cigarette that produces even more tar and harmful chemicals.

Nobody is quite sure how much worse it is than a standard cigarette. Anywhere from 20% to 70% seems plausible. It would be hard to tell until people start getting sick.

David Farrar: The $216 million nonsense

Radio NZ report:

The government has agreed to set aside $216 million it may need to pay for tax cuts for heated tobacco products (HTPs).

When I first heard this figure it seemed illogical as HTPs are such a minuscule part of the market.

Dr Eric Crampton: RNZ remains on-form

There are a few basic bits of reality that I'd hope we could agree on.

Minister Costello has set a lower excise rate for heated tobacco products as a bit of a trial to see whether it proves successful in encouraging remaining smokers to flip to something less harmful.