Cutting the tobacco excise won’t stop the illegal trade. This is how other countries solved the problem
The Coalition has proposed slashing the tobacco excise, the federal tax on tobacco products, by 80%. It claims cheaper legal cigarettes will draw people who smoke away from the illicit market and deprive organised crime of its profits. The proposal sounds appealing but is deeply flawed. Australia’s high tobacco tax undeniably makes untaxed sales profitable. Yet this incentive is not by itself a cause. Whether a tax creates a thriving illicit market depends on the strength of the systems designed…
Where: Australia, United Kingdom, Canada
Exact coordinates
australia: -25.270, 133.780
united kingdom: 55.380, -3.440
canada: 56.130, -106.350
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