Key facts
- Australia's high tobacco taxes have led to 80% of tobacco consumption being from the black market.
- The high taxes are a direct consequence of the government's strategy to eliminate smoking.
- Illicit trade has significantly increased as a result of the tax policy.
Australia implemented a strategy of high taxation on tobacco products with the aim of eliminating smoking. However, this policy has inadvertently led to a substantial increase in the black market for tobacco. Currently, an estimated 80% of the tobacco consumed within the country is sourced illicitly. This surge in illegal trade is a direct consequence of the elevated taxes imposed on legal tobacco products, suggesting that the intended outcome of reducing tobacco consumption has been undermined by the rise of an unregulated market.