Illegal Tobacco Cost Australia A$1 Billion: KPMG Report

[Spoonman]

This is a real good lesson to learn. when you start taking legal products and putting restrictions on them or excessive taxes, you create a black market. in the end, you lose. governnment in their efforts to control are only screwing themselves. it happened here in the USA too. both cigarettes and gasoline became black market targets when prices were raised due to taxes. and black market sales go to minors as well. they aren't checking id's

Illegal Tobacco Cost Australia A$1 Billion: KPMG Report - Bloomberg

Illegal Tobacco Cost Australia A$1 Billion: KPMG Report

Illegal tobacco sales deprived the Australian government of about A$1 billion ($946 million) of taxes in the 12 months ended in June, according to a report commissioned by cigarette makers.

Accounting firm KPMG LLP released the study today as the first since a federal law prohibiting the sale of cigarettes in branded packages took effect Dec. 1 to discourage smoking and reduce related spending on health care. Illicit sales increased 1.5 percentage points to 13.3 percent of total shipments, while consumption didn’t drop in the year, according to the report.

Planned increases in tobacco taxes will cause illegal sales to increase, the report said, citing Scott McIntyre, a spokesman for British American Tobacco Plc’s Australian unit. Australia announced plans in August to boost tobacco excise to raise more than A$5 billion and help narrow the country’s fiscal deficit over the next four years.

 

[Vox]

sure. we supposedly learned the lesson with prohibition.
But the memory was short lived

or the ones who once made a lot of money on illegal contraband want to go that road again.

 

[Spoonman]

sure. we supposedly learned the lesson with prohibition.
But the memory was short lived

or the ones who once made a lot of money on illegal contraband want to go that road again.

governemnt has to realize they can not control and mandate peoiples lives

 

[Pauli007001]

Australia shouldn't whine about losses to criminals .

Their immigration policy is a scam.

They issue a visa, take the fees.
Demand a large sum of money up front for kids schooling.
Tell the applicant they have 6 weeks to find a job that pays a good salary.
The applicants do this.

After 6 weeks the applicants are told to double their income, pay the education fee again, and pay the filing fee again.
Or get out, no refunds!
The cost for a family going through this process is about 50 grand.

To move to the USA would cost a family of 4 less than $5G!