Angus Taylor has unveiled his plan to slash the price of cigarettes to just $16 a packet if elected Prime Minister, cutting tobacco taxes by up to 80 per cent.<\/p>\n
But the government has dismissed the idea, insisting there is no evidence it would actually reduce the illicit trade. <\/p>\n
Successive governments have hiked tobacco taxes in part because of the cost smoking ultimately imposes on the health system.<\/p>\n
But critics say it hasn\u2019t worked, forcing hundreds of thousands of smokers to buy cigarettes from illegal traders.<\/p>\n
The Liberal Party now argues this could raise more tax by cutting excise, not less, because cutting taxes would eliminate the illegal cigarette trade that has sprung up at tobacconists flogging vapes and imported cigarettes across the country.<\/p>\n
\u201cOrganised crime is waging a campaign of economic terrorism on Australians,\u201d Mr Taylor said.<\/p>\n
\u201cThey\u2019re making billions from illegal tobacco and vapes, using those profits to fund firebombings and killings on our streets, while expanding their criminal empires into drug trafficking, scams and money laundering.<\/p>\n
\u201cThis isn\u2019t just a black-market tobacco problem. It is a major organised crime business that is making our streets less safe and ripping billions of dollars from taxpayers.\u201c<\/p>\n
Since successive governments hiked tobacco taxes to record levels, more and more otherwise law-abiding citizens have turned to illegal dealers. <\/p>\n
A 20-pack of cigarettes typically costs up to $50 from a supermarket and around $30 of that is excise.<\/p>\n
With the Coalition\u2019s proposed cut, the excise would be cut by 80 per cent. The price would drop to between $16 and $25. <\/p>\n
Mr Taylor said a Liberal Government would also launch a massive crackdown on dealers of illegal cigarettes.<\/p>\n
\u201cYou don\u2019t bring organised crime to its knees by protecting its business model. You have to destroy the business model, and that\u2019s what the Coalition\u2019s policy will do.\u2018\u2019 he said.<\/p>\n
\u201cTobacco consumption has gone up around 30 per cent since the end of 2021 while taxes have kept rising, clearly showing that the Government\u2019s current approach has failed.\u201c<\/p>\n
A $200 million nationwide law enforcement surge would also be delivered to fund more raids, arrests, and seizures, shutting down illegal shops under the Liberal plan.<\/p>\n
Vapes and nicotine pouches would be legalised, regulated, and taxed for adults, replacing Labor\u2019s pharmacy-only vape model.<\/p>\n
According to the Coalition, the illicit tobacco trade accounted for around 10 per cent of consumption ten years ago.<\/p>\n
It now accounts for around 80 per cent.<\/p>\n
Nationals leader Matt Canavan said something had to change.<\/p>\n
\u201cWhen criminals can sell a packet for a fraction of the legal price, Australians should not be surprised that the black market has exploded,\u2018\u2019 he said.<\/p>\n
\u201cCutting the excise will take billions of dollars out of the hands of criminal gangs, bring the market back under Australian law and give our police a fighting chance to shut down those who remain.<\/p>\n
One Nation\u2019s plan for cigarettes<\/p>\n
Pauline Hanson has vowed to slash the price of cigarettes by 75 per cent in a move she claims will fight organised crime.<\/p>\n
In a shock policy, the One Nation leader is calling for a radical rethink of cigarette taxes that would slash the current cost of a $46.50 pack to just $22.<\/p>\n
The last time cigarettes cost $22 in Australia was around 2015 before average prices rose past $35 by 2019 and over $50 by 2026.<\/p>\n
Warning that successive tax hikes have opened the door to criminals flogging vapes and illegal cigarettes to school children, she challenged Health Minister Mark Butler to act.<\/p>\n
\u201cPeople are sick of the firebombing, shootings, extortion and killings. They are sick of watching tobacco shops burn, while organised crime takes control of the market,\u2019\u2019 Senator Hanson told news.com.au.<\/p>\n
\u201cVictoria Police says there have been 193 tobacco arsons and six homicides directly attributed to the trade. Innocent victims have been killed by arsonists who attacked the wrong home. This is not a victimless crime.<\/p>\n
Senator Hanson said the failure of the policy was hitting tax revenue as otherwise law-abiding smokers turn to illegal tobacconists that have popped up across the country.<\/p>\n
\u201cLegal tobacco is being replaced by black-market cigarettes,\u2019\u2019 she said.<\/p>\n
\u201cExcise in a packet of 20 is now about $30.60 and is scheduled to rise again in September.<\/p>\n
\u201cWe do not blame Australians under cost-of-living pressure for stretching their budgets. We blame a government that kept doubling down while organised crime built a multibillion-dollar market.<\/p>\n
\u201cThis is not about encouraging smoking. It is about restoring the rule of law and breaking the black market.<\/p>\n
\u201cLabor handed this market to organised crime. One Nation will take it back.\u201d<\/p>\n
Treasurer Jim Chalmers\u2019 warning<\/p>\n
Last year, Jim Chalmers warned that making cigarettes cheaper will not solve the booming trade in illegal tobacco, dismissing the calls to slash taxes on smoking.<\/p>\n
Despite calls from the NSW Premier Chris Minns that the high tobacco excise is driving a spike in organised crime, the Treasurer said cutting taxes on tobacco was not the answer.<\/p>\n
\u201cWe don\u2019t believe that cutting taxes on tobacco will stop illegal activity in this market that has developed over a longer period of time,\u2019\u2019 the Treasurer said on Monday.<\/p>\n
\u201cBut we do think compliance is a big part of the story. That\u2019s why we\u2019re finding room for so much new investment in compliance for the police.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Angus Taylor has unveiled his plan to slash the price of cigarettes to just $16 a packet 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