Tobacco tax cut lit up as black market trade 'solution'

Amid concerns high prices are driving the black market, there are calls to cut tobacco excise. (Diego Fedele/AAP PHOTOS)

The federal government is digging in against mounting calls to overhaul tobacco tax as the scale of Australia's black market trade is laid bare.

Data showing four in five vapes and cigarettes consumed in Australia in 2025 were bought on the black market has dredged up fresh debate about cutting the tobacco excise.