[Intl-tobacco] Aust Govt under fire over tobacco company tax breaks (fwd)

[Robert Weissman]

Govt under fire over tobacco company tax breaks
Source: Australian Broadcasting Corporation, Sunday, 2/27/00
      
The Federal Government is under pressure to scrap research and development
concessions for the tobacco industry.

The calls follow revelations that the industry is receiving close to
$500,000 in concessions a year.

ABC Radio National's Background Briefing this morning revealed that the
Federal Government has been giving tobacco companies $400,000 a year in
tax concessions under the research and development scheme.

Philip Morris Australia has used the money to develop faster
cigarette-making machines and high tar cigarettes for export to Africa.

Philip Morris spokeswoman Nerida White says the company is entitled to the
concessions.

"Everybody is required to comply with the same guidelines and meet the
same eligibility criteria, we don't think we should be discriminated
against under tax law," she said.

But the Australian Medical Association says the concessions must be
scrapped.

Anne Jones from Action on Smoking and Health agrees, saying smoking kills
18,000 Australians every year.

"I think it's extremely hypocritical of the government to be giving
handouts to the tobacco industry, whose products, when used as intended,
cause cancer and heart disease," Ms Jones said.

Govt defence

The government has defended its decision to give tobacco companies
$400,000 a year in tax concessions for research and development programs.

Industry Minister Nick Minchin told Background Briefing the tobacco
industry should not be singled out.

"I don't mind if people want to have a debate about whether cigarettes
should be prohibited altogether. In my view, that is a separate debate,"
he said.

"If they're not prohibited [and] companies are paying tax producing legal
products, they're entitled to seek tax concessions."

Opposition

The Federal Opposition has promised to end research tax breaks for the
tobacco industry.

Mr Beazley says previous Labor Governments have also provided similar tax
breaks, but that policy has now changed.

"Our view would be you should target the new industries, that we need the
new industries that are the clever industries that advance our knowledge
as a people and advance our productivity as a people," he said.

"I strongly suspect that cigarettes don't come into that capacity."
        
ABC VIDEO Health experts are horrified at the concessions given to the
tobacco industry. Joe O'Brien reports.