The federal Coalition's plan to cut the tobacco excise by 80 per cent in an attempt to destroy the black market trade in cigarettes has been criticised by local Indi Independent MP Helen Haines. The Liberal/Nationals proposal could see the price of a standard packet of 20 cigarettes drop from around $30 to around $6, dramatically reducing the price advantage enjoyed by the black market. The rate will be reviewed after two years with a view to ensuring the illegal market cannot rebuild according to Opposition leader Angus Taylor. The policy would also include a $200 million nationwide law enforcement "surge" to back more raids, arrests, seizures, and investigations to shut illegal shops, intercept illegal tobacco at the border and dismantle the criminal networks behind the trade according to the Coalition. Vapes and nicotine pouches would be legalised, regulated, and taxed for adults, and a $60 million, three-year national public awareness and education campaign would aim to expose the organised crime behind illegal tobacco and vapes and warn Australians where the money from illegal products ends up and the dangers of smoking. “Organised crime is waging a campaign of economic terrorism on Australians,” Mr Taylor said. “They’re 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. “This isn’t 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. “Tobacco consumption has gone up around 30 per cent since the end of 2021 while taxes have kept rising, clearly showing that the government’s current approach has failed. “Australians are getting the worst of all worlds: tobacco consumption is up, criminals are controlling most of the market, and taxpayers are losing billions in revenue.” Dr Haines said the policy showed the Liberals and Nationals were walking away after decades of bipartisanship in tobacco control policy. "Smoking kills and we should not let that undisputed fact get lost in the debate about tobacco excise," she said. "At the same time, we cannot let criminals run roughshod over our communities. "I hear regularly from my electorate that they are fed up with illegal tobacco shops and the organised crime behind them. "I want to see the black market shut down and the criminals who are making money from illegal tobacco put out of business. "Any changes to the tobacco excise need to be evidence-based. "We cannot simply assume that cutting the excise will shut down the illicit market. "We also need to properly consider the public health consequences. "I spent my career in rural health research before entering politics and saw firsthand the devastating impacts of smoking. "Before making major changes to the excise, we need independent modelling and clear advice from public health experts about the likely impact on smoking rates and the risk of unintended consequences, including increased vaping. "We need strong coordination and enforcement at both the state and federal levels to crack down on the black market, back law enforcement and protect the hard-won progress we’ve made in reducing smoking rates."
