No guarantee tobacco tax cut would lure Australian smokers from illegal trade and raise more revenue, report says

Exclusive: New research points to need for ‘holistic approach to combating illicit tobacco’ including having support of health advocates

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Slashing the tobacco excise might not be enough to lure smokers back to legal cigarettes, and could even widen the multi-billion dollar hole blown in the budget by the booming illicit trade, new research shows.

The analysis from the e61 Institute comes as Jim Chalmers revealed next week’s mid-year fiscal update will reveal an extra $12.7bn in unanticipated spending, including an additional $6.3bn in higher than expected disaster relief payments.