Illegal trade rising

A ‘significant percentage of Australian smokers’ are consuming illicit cigarettes, according to a Xinhua News Agency story based on a report published yesterday.
The KPMG study showed that while tobacco consumption fell by 6.1 percent between 2016 and 2017, the share of illicit tobacco rose to 15 percent – to 1,248 tons.
In 2009, the story said, illicit tobacco accounted for nine percent of overall consumption.
The consumption of illicit cigarettes was said to be ‘costing’ the federal government up to A$2 billion (US$1.49 billion) in ‘lost’ tax revenue.
But Australia’s excise on cigarettes is expected to raise A$15.6 billion by 2021, up from A$11.2 billion in 2017-18 as excise increases come into effect.
The excise on tobacco was raised by 25 percent in 2010 with eight further 12.5 percent increases legislated to take place between 2013 and 2020. It is currently equivalent to 75 percent of the price of a pack of cigarettes.
Illicit cigarettes are about 40 percent cheaper than are licit cigarettes, while loose-leaf tobacco is 70-80 percent cheaper.