The above graph is taken from the KPMG’s latest report into the Australian illicit tobacco market, which was released today. It shows the volume of illicit tobacco consumption, and the proportion of the total tobacco market which is attributable to that illicit consumption.
As you can see, in recent years, where the federal government has become even more active in the tobacco market, mandating certain rules of packaging and frequently increasing taxes, the illicit tobacco rate is steadying after a sharp increase between 2012 and 2014.
Since the same point 12 months ago, total tobacco consumption in Australia has decreased 0.1 per cent, while the share of that market attributed to illicit tobacco is steady at 14.3 per cent.
When you consider that long term tobacco trends show declining consumption, and the federal government’s annual 12.5 per cent excise increases, a total decrease in 0.1 per cent must be very underwhelming for those public health experts who for too long have applauded the “success” story of artificial government controls in the tobacco market.
Illicit tobacco maintains a significant proportion of the Australian market, and total consumption has remained practically unchanged. Some success.