Tobacco tax fueling black market crime
Aug 7, 2017
From: Macro Business
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In May last year, a report by the Australian National Audit Office produced a damning assessment of the policy, arguing that revenues would fall short precisely because of the factors I highlighted above:
“There is uncertainty about forward estimates of tobacco revenue, as these estimates do not incorporate a change in supply and demand of dutiable tobacco arising from cheaper illicit product”…
The ANAO report said budget assumptions did not “factor in the size of the illicit trade in tobacco and potential changes to the supply of and demand for dutiable goods as a result of the increase in costs in the legitimate market”.
