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AAP

Alex Mitchell

Tobacco tax to stay despite black market fears

Tobacco Chris Minns Jim Chalmers

The federal government will not cut its tobacco excise despite the growing black market. (Dean Lewins/AAP PHOTOS)

A tobacco tax that's helped drive Australian cigarette prices to world-leading highs won't be lowered despite suggestions it has aided a rampant black market.

Treasurer Jim Chalmers ruled out changing the tobacco excise on Wednesday, dismissing NSW Premier Chris Minns' call that lower prices could help curb surging levels of illegal tobacco in the community.

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