Some state leaders concerned about the high taxes

FROM A8

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such as South Africa and Malaysia with relatively low tobacco taxes often had high levels of illicit trade.

She said the government had failed to properly regulate and oversee tobacco sellers, leading to the “criminal infiltration of the retail sector”.

“If you reduce the tax, it will make the problem worse and increase the overall market base,” she said. “All you will do is make cigarettes in the legal and illicit markets cheaper and this will lead to more younger people taking up smoking.”

The federal government has defended the high tax rate on cigarettes, saying it encourages people to quit smoking.

Health Minister Mark Butler said in September that the illicit trade was not due to high prices but to a global oversupply of cigarettes that led to the “dumping” of the product around the world.

He acknowledged that the illicit trade had led to arson and violence and was “bankrolling” other criminal activities such as sex and drug trafficking.

But some state leaders have expressed concern about the high taxes.