A hike in the tobacco excise “supports criminal gangs”, according to Australian Association of Convenience Stores CEO Jeff Rogut.
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The federal budget included an annual 12.5 per cent increase of the tobacco excise to 2020, which could see pack of cigarettes cost $40.
Mr Rogut branded the move “lazy yet predictable” and said rising prices would just encourage the illegal importation of tobacco.
“With endless excise increases the government is shooting itself in the foot, as the criminals behind the smuggling and sale of illicit tobacco in Australia benefit every time the cost of legal tobacco rises,” Mr Rogut said.
“This has made Australia one of the world’s most lucrative markets for illicit tobacco.
“Of course, the Government collects no excise on the sale of illegal tobacco, missing out on $1.35 billion in lost tax revenue last year alone.”