Philip Morris used a closed-door Australian Senate hearing on illicit tobacco to argue that high excise taxes are driving consumers toward the black market and called for lower cigarette prices to restore legal sales. According to a released transcript, company representatives said taxes account for at least A$34 of a A$37.95 pack ($24.48 of $27.32), while illicit cigarettes can sell for as little as A$12 ($8.64), contributing to an illicit market estimated at 50–60% of total sales, or A$4–A$7 billion ($2.8–$5 billion).
The company told lawmakers that narrowing the price gap between legal and illegal products could help shift consumers back into regulated channels, citing price, access, and enforcement as key drivers of illicit trade. The hearing, which was initially held in private, drew criticism from public health advocates who said it “ran counter to an international treaty Australia signed up to in the mid-2000s,” while government officials defended the decision to include industry input in the inquiry.
