Taxation

This section provides data on recent and historical levels of tax on tobacco products. It also documents the amounts of revenue received by government from duties, fees and taxes on tobacco products.

Taxes on cigarettes
Excise and customs revenue from tobacco
Tax policy resources

Taxes on cigarettes

Current excise and duty on tobacco from the Australian Taxation Office.

The rates of excise duty on tobacco are increased in February and August each year, in line with movements in the consumer price index.

Excise and customs duty, February 2007

$0.24031 cents per stick
$300.39 per kg for loose tobacco

Click here for previous rates (xls file)

Note: GST at 1/11th of final retail price.

Source: ATO Website - Excise tariff working pages


Excise and customs revenue from tobacco

Tobacco excise for 2003-2006

$5.247b actual for 2003-04

$5.237b actual for 2004-05

$5.296b actual for 2005-06

Source: Costello, P. Budget Paper No. 1, Budget Strategy and Outlook 2005-06 and Final Budget Outcome 2005-06 
 

Customs revenue from tobacco products

Year ending June 2000 - 2005

2000 - $ 286.62m

2001 - $ 376.45m

2002 - $ 399.34m

2003 - $ 450.60m

2004 - $ 447.96m

2005 - $ 519.00m

Source: ABS customs receipts



Tax policy resources

The following websites have useful information about prices and taxes.

  1. The National Clearinghouse on Tobacco and Health Program (Canada) has a section of its Virtual Library on tobacco taxation related issues. It presents data that has been collected and validated by an expert economist firm.
  2. The Campaign for Tobacco-Free Kids "Raising cigarette taxes reduces smoking - especially amongst kids and the cigarette companies know it" (PDF 200kb). The fact sheet includes references to numerous studies on the power of cigarette tax increases to reduce smoking especially among children.
  3. American Cancer Society / World Health Organization resource:
    The Tobacco Atlas (2nd edition) - Price Policy [PDF 320 kb] .
    Tobacco tax as a proportion of cigarette price, cigarette price increases compared with consumption in the UK, government income from tobacco, cigarette tax as a proportion of price in the USA, tobacco industry quote.