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FED:Tobacco tax cut lit up as black market trade 'solution'

The federal government is digging in against mounting calls to overhaul tobacco tax as the scale of Australia's black market trade is laid bare.

Data showing four in five vapes and cigarettes consumed in Australia in 2025 were bought on the black market has dredged up fresh debate about cutting the tobacco excise.

The black market share of total nicotine consumption has climbed from 12 per cent to 80 per cent from 2017 to 2025, according to the Australian Bureau of Statistics.

Introducing legislation to give state tobacco regulators powers to shut down dodgy sellers, Victorian Casino, Gaming and Liquor Regulation Minister Enver Erdogan acknowledged the excise had contributed to the problem.

"The statistics speak for themselves," he told reporters at state parliament on Thursday.

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