Down in the last shower on tobacco tax cuts

May 25, 2026

Alex Wodak offers no argument beyond those noticeably in lockstep with arguments used by all major tobacco companies. If tobacco tax was cut to 2020 levels, budget cigarettes would cost $30 a pack. If all tax went, they’d cost $11. Today they cost $7 if bought by the carton. In Cambodia a major illicit tobacco transit hub, taxed cigarettes sell for as low as 34 cents a pack. That’s how much criminals have up their sleeves to drop prices further. And I’ve now heard it all. In what universe would most budget-conscious smokers say “I really hate not paying tax, so I’ll fork out extra dollars to help the government”. Truly? Is Wodak clueless about Australians’ willingness to pay cash to tradies, cleaners, barbers etc who, like illegal tobacco sellers, often avoid tax? In six years, the ATO has clocked up 300,000 tip-offs on tax evasion. And more news for him. In countries with inequality of income (ie: all of them), all sales taxes are regressive. But, importantly what a perverse way to help the disadvantaged: give them access to cheap smokes as government policy rather than a powerful incentive to quit or not start.