No guarantee tobacco tax cut would lure Australian smokers from illegal trade and raise more revenue, report says

A new report by the e61 Institute in Australia suggests that cutting tobacco excise taxes may not effectively deter smokers from purchasing illegal tobacco products. The research indicates that a tax cut might not increase revenue and could potentially exacerbate the existing multi-billion dollar budget deficit caused by the illicit tobacco trade. The analysis arrives as Treasurer Jim Chalmers announced an upcoming mid-year fiscal update revealing an additional $12.7 billion in unanticipated spending, including $6.3 billion for disaster relief. The report emphasizes the need for a comprehensive strategy to combat illicit tobacco, including support from health advocates, rather than relying solely on tax adjustments to address the issue.

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