Tobacco excise has passed a ‘tipping point’ and is fuelling black market, economists warn
June 12, 2025 by theguardian.com
Tobacco excise has passed a ‘tipping point’ and is fuelling black market, economists warn
Economists suggest freezing or reducing the tobacco excise to tackle Australia's booming illegal cigarette market, as raising the excise further has failed to curb smoking rates. However, public health advocates warn against drastic tax cuts. The excise, which has tripled in the past decade, comprises a major portion of cigarette prices. Despite successful past policies reducing smoking rates, current measures are ineffective. Border seizures of illegal tobacco have surged, prompting calls for stronger enforcement over tax decreases. Experts argue that the excise level has become counterproductive, suggesting a temporary radical cut. The excise rate, now heavily indexed and escalating annually, needs revision to combat illicit tobacco trade.
12.50% of the adult population are current smokers. There are approximately 2.6 million current smokers in Australia 14.80% of men are current smokers but only 10.30% of women.
SOURCE: GSTHR
