New South Wales Premier Chris Minns has backed a proposal from the One Nation party to slash the tobacco excise tax on cigarettes [1].
The move signals a potential shift in public health strategy as leaders weigh the effectiveness of high taxes against the growth of illegal cigarette trade.
Minns said the current excise system is not working and that a tax reduction could help curb the illicit cigarette market [1]. The proposal comes amid a broader debate over how to handle tobacco consumption in Australia.
One Nation has pledged a 75% cut to the tobacco excise [4, 5]. The party also proposes a freeze on the price indexation of the tobacco tax for three years [5].
Other political entities are now considering similar measures. The Coalition is reportedly eyeing an 80% tobacco tax cut after being gazumped by the One Nation proposal [3].
Critics of the current taxation model argue that high prices have failed to stop smoking. James Morrow of News24 said the method of taxing smoking out of existence has been an absolute failure.
Morrow said, "Good on Chris Minns," regarding the Premier's support for the tax cuts.
Minns' support for the measure aligns with arguments that extreme price points drive consumers toward unregulated black markets rather than cessation. By lowering the legal cost of cigarettes, proponents argue the government can undermine the profit margins of criminal syndicates involved in smuggling [1].
“This way of taxing smoking out of existence … has been an absolute failure.”
This shift represents a pivot from a purely health-driven fiscal policy to a crime-reduction strategy. While high tobacco taxes are traditionally used to discourage smoking, the emergence of a robust illicit market suggests a tipping point where price hikes may fuel organized crime more than they improve public health outcomes.
