Australia’s tax war on smoking has been a disaster. And we won’t do anything about it | Alexander Downer
May 12, 2026 by archive.is
Australia’s tax war on smoking has been a disaster. And we won’t do anything about it | Alexander Downer
Australia’s aggressive tobacco tax policy is facing growing criticism as concerns mount over the expansion of the illicit cigarette market. Former foreign minister Alexander Downer argues that repeated excise increases have pushed legal cigarette prices among the highest in the world, while fuelling demand for cheaper illegal products. According to critics, the strategy has weakened government revenues, strengthened organised crime networks and potentially undermined reductions in smoking rates. At the same time, vaping products—subject to different tax treatment—have become increasingly popular as smokers seek lower-cost alternatives. The debate highlights broader questions about whether excessively high taxation can become counterproductive when consumers shift towards unregulated markets instead of quitting nicotine altogether.
11.00% of the adult population are current smokers. There are approximately 2.4 million current smokers in Australia 12.90% of men are current smokers but only 9.30% of women.
SOURCE: GSTHR
