The illegal tobacco market has left a $3.3bn hole in the federal government’s finances, with Australia’s national criminal intelligence agency warning organised crime’s dominance of the market is continuing to grow.
The Australian Taxation Office believes the illegal trade now accounts for one in five tobacco sales, which has led to reduced tax revenues despite the government’s excise on legal cigarettes reaching almost $30 for a pack of 20 sticks in September. The excise has increased almost eightfold since 2006, when it was $4.65.
