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AAP
AAP
Abe Maddison

'Nightmare scenario': illegal tobacco impact laid bare

Tobacco Australia Philip Morris Public Health Smoking
Health groups are urging the federal government to stick to its guns on anti-smoking programs. (Dean Lewins/AAP PHOTOS)

Illicit tobacco sales are destroying the livelihoods of legitimate retailers and the market will be "fully illicit" within two years, a Senate inquiry has been told.

Demand for illegal tobacco has exploded in Australia because of large tax increases on legal products.

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