The Australian Association of Convenience Stores (AACS) is renewing calls for the Federal Government to reverse the tobacco excise hike.
Following an investigation by the ABC’s 7:30 program, which showed that the tax increases are turning Australians to the black market for illegal tobacco, Theo Foukkare, CEO of AACS, said that it’s clear Australians aren’t quitting smoking, they’re just quitting buying tobacco legally.
“Gradual tax increases were meant to encourage Aussies to quit smoking all together – but the Federal Government got addicted to the tax it makes from the lawful purchase of tobacco products.”
Since 2012, tobacco excise has surged by 384 per cent, but Foukkare said that instead of curbing smoking, it has fuelled black market growth.
“That 384 per cent increase far exceeds the point where it deters new smokers – it now only benefits illegal operators because smokers who aren’t looking to quit will continue to buy cheaper, illegal alternatives, just like we saw on telly last night.”
During the first six months of 2024, legal tobacco sales dropped by 14 per cent in AACS member stores, but record nicotine levels were recorded in regional areas and had grown significantly across major cities, according to government commissioned wastewater analysis.
“AACS will always support any responsible policy to deter people from smoking- but with the booming and largely unmonitored black market flooded with illegal tobacco – we’re now seeing more people hand over cash to illegal operators – most of them unknowingly.
“Smokers aren’t doing dodgy deals down some dark alley – it’s illegal operators openly selling their product because the Albanese Government’s lack of enforcement makes it so easy for them to do so.”
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.