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Industry lobbyists active in Canberra amid hearings on booming black market
Anti-smoking campaigners have been on alert for weeks, suspecting tobacco industry lobbyists were working behind the scenes to influence events during hearings about Australia's growing illicit cigarette trade in May.
Longtime observers of the industry note that the push for excise reductions is not new — tobacco companies have advocated for lower taxes on cigarettes for decades. However, the explosion in illegal cigarette sales has given these calls renewed urgency and political traction.
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Australia has some of the world's highest cigarette taxes, a policy aimed at reducing smoking rates. The government has incrementally increased excise over many years. In response, an illicit market for cheaper, untaxed cigarettes has expanded, creating a policy tension: high taxes reduce legal consumption but feed black market demand.
Tobacco Industry: Argues that high excise is driving consumers to the illegal market, and that cutting taxes would reduce the black market and generate more consistent revenue. Anti-smoking campaigners: View the excise as a crucial public health measure. They are suspicious of industry lobbying and warn that cuts would boost smoking rates. Government: Must weigh public health goals against the expanding illicit trade and industry pressure.