World News
Australian Coalition proposes 80% tobacco excise cut and legalizing vapes to fight illicit market
The opposition plan to slash cigarette taxes and expand enforcement faces sharp resistance from the Labor government and medical groups.
The short version
- Australia's federal Coalition announced a policy proposal to reduce tobacco excise by 80% and legalise regulated vapes and nicotine pouches.
- The opposition argues lower prices and a $200m law enforcement package will disrupt organized crime controlling the black market.
- The Labor government, the Australian Medical Association, and World Health Organization experts condemned the proposal, warning increased affordability will drive up smoking rates.
Key facts
- The Coalition's proposal would lower the excise on a standard 20-cigarette packet from approximately $30 to about $6.[The Guardian]
- The policy includes $200m for law enforcement, increasing resources for the Australian Border Force, federal police, and other agencies to counter illegal sales.[The Guardian]
- Opposition figures cited Parliamentary Budget Office modelling projecting the policy would generate roughly $8bn in budget revenue over four years, including through new excises on vapes and nicotine pouches.[The Guardian]
- The Australian Medical Association and Labor ministers rejected the plan, contending that reducing cigarette prices reverses decades of successful public health interventions.[The Guardian]
What remains uncertain
- The precise impact of significant excise reductions on net government revenue and whether the policy would successfully undercut the illicit market without raising overall smoking rates remain contested.[The Guardian]