Australia’s tobacco commissioner has faced scrutiny over claims that changes to the cigarette excise would not curb the illegal tobacco trade.
Tensions have been rising over the excise as states and economists pressure the federal government to consider freezing the policy.
The federal tax has leapt to $1.50 a cigarette, prompting many of the nation’s 1.7 million daily smokers to turn to cheaper options on the booming black market.
While acknowledging tax is a factor in the widening price gap, commissioner Amber Shuhyta today defended turning her focus elsewhere.
The solution, she said, lay in stronger inter-agency collaboration, centralised data and intelligence-sharing, and tougher legislative and licensing reforms.
“I’m trying to give a more comprehensive picture of a trustworthy source of advice for government,” Shuhyta told a NSW illicit tobacco parliamentary inquiry.
“Excise has not been found, in the evidence in front of me, [to be] the sole or primary driver of this issue. If it was simple as that, I would be putting that advice to government.
“I need to hold the health outcomes of Australia at the same time as looking at excise, this isn’t purely a financial problem to solve.”
Excise revenue has declined sharply from a peak of $16.3 billion in 2019/20, with Treasury estimates at $5.5 billion for 2025/26.
Ritchies IGA, which operates 150 stores largely across Victoria and NSW, says Treasurer Jim Chalmers could repair the budget by billions of dollars and undermine criminal gangs by reversing years of bipartisan support for ever-higher rates of tobacco excise.
AAP with Shane Wright
Read the full article here
