Should Australia Make Cigarettes Cheaper to Stub out the Black Market?

The proportion of Australian smokers using illicit tobacco has doubled in two years, reaching 34 percent. Illicit sources now account for 80 percent of nicotine consumption, a significant increase from 12 percent in 2017. This surge in the black market has cost the federal budget an estimated $6.9 billion, occurring concurrently with a record low daily smoking rate of 5.6 percent.

• The percentage of Australian smokers using illicit tobacco has doubled from 17% to 34% in two years.
• Illicit sources now represent 80% of nicotine consumption in Australia, up from 12% in 2017.
• The black market for tobacco has grown substantially, costing the federal budget approximately $6.9 billion.
• These trends are occurring while the daily smoking rate has fallen to an all-time low of 5.6%.