Tobacco excise has passed a ‘tipping point’ and is fuelling black market, economists warn

Taxes now account for $28 of the average $40 price for a packet, following a triple-fold excise hike in 10 years from 46c to $1.40 per cigarette

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Economists say regular increases to the tobacco excise have stopped working to further lower smoking rates, and are instead encouraging a soaring cigarette black market.

Instead, they suggest either a freeze or a cut to the excise rate while Australia cracks down on illicit tobacco. However a public health advocate warned policymakers not to be “conned” into a radical tax cut.

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