If they removed the excise completely you could sell a pack of 20 for around $10. Chapman's argument goes like this: but even if you did that, criminals could sell them even cheaper. Yes, they could. But there a big difference between paying an extra $3 - 5$ for a legal packet and paying a extra $20 - $40. A significant portion of smokers would return to the legal market as a result. It may not completely eradicate the BM but it would certainly greatly reduce it to manageable levels.
That could be done in collaboration with the tobacco companies.
The tobacco companies reduce their profit margins if they want to win back the market, the government reduces the reduces the excise.
It can be done if they would start to treat smokers just like other consumers instead of this patient/ sick people attitude.
Simon is not correct that even if the government reduces the exice the black market could go lower. Yes they could go lower. But just like with the illegal video down loading when the market was able to access the content they want at a reasonable price, video piracy almost stopped.
In countries where the cigarette prices are low but black market still exist. That is usually because it is selling popular brands that are not available in those countries ( Sobranie in Eastern Europe, recently, till the authorities approved them). Or, very low quality tobacco for the very poor people.
It can be done, just there need to be some political will.
Every time when hear her speak or read her statements, i can see Simon Chapman and Becky Freeman whispering in her ear.
Untill the government and their appointees step away from them and start thinking outside " the box", nothing will change.
But since they are going to ban nicotine pouches as well and in that way add just another product to the black market, nothing will change anytime soon.
It’s not only Australia’s Illicit Tobacco and E-cigarette Commissioner, Ms Amber Shuhyta, who argues that cutting sky high cigarette excise will not help reduce the illegal trade in cigarettes. Emeritus Professor Simon Chapman AO agrees. But highly regarded economists including Chris Richardson, Alan Kohler and Professor Richard Holden argue that exorbitant cigarette excise is the cause of the boom in illegal cigarettes and has to be reduced. Holden supports a temporary cut of cigarette excise to zero and cites previous examples where excise had been cut to zero to allow governments to regain control of legal supply. Australian supporters of sky high cigarette excise and super restricted vape availability are not the first zealots to underestimate how powerful market forces can be. NSW Labor Premier Chris Minns and Tasmanian Liberal Premier Jeremy Rockcliff also want to see cigarette excise cut. In the meantime, the Australian government, health establishment and most mainstream media will have keep defending a policy that burns a $7-12 billion hole in the federal budget every year while also incentivising organised crime to keep importing and selling massive quantities of illegal cigarettes, tobacco and vapes. There is only one way this can end. And that’s with some politicians, the health establishment and most mainstream media eating a giant shit sandwich. Pride goes before a fall.
If they removed the excise completely you could sell a pack of 20 for around $10. Chapman's argument goes like this: but even if you did that, criminals could sell them even cheaper. Yes, they could. But there a big difference between paying an extra $3 - 5$ for a legal packet and paying a extra $20 - $40. A significant portion of smokers would return to the legal market as a result. It may not completely eradicate the BM but it would certainly greatly reduce it to manageable levels.
That could be done in collaboration with the tobacco companies.
The tobacco companies reduce their profit margins if they want to win back the market, the government reduces the reduces the excise.
It can be done if they would start to treat smokers just like other consumers instead of this patient/ sick people attitude.
Simon is not correct that even if the government reduces the exice the black market could go lower. Yes they could go lower. But just like with the illegal video down loading when the market was able to access the content they want at a reasonable price, video piracy almost stopped.
In countries where the cigarette prices are low but black market still exist. That is usually because it is selling popular brands that are not available in those countries ( Sobranie in Eastern Europe, recently, till the authorities approved them). Or, very low quality tobacco for the very poor people.
It can be done, just there need to be some political will.
Every time when hear her speak or read her statements, i can see Simon Chapman and Becky Freeman whispering in her ear.
Untill the government and their appointees step away from them and start thinking outside " the box", nothing will change.
But since they are going to ban nicotine pouches as well and in that way add just another product to the black market, nothing will change anytime soon.
Let them, just let them.
It’s not only Australia’s Illicit Tobacco and E-cigarette Commissioner, Ms Amber Shuhyta, who argues that cutting sky high cigarette excise will not help reduce the illegal trade in cigarettes. Emeritus Professor Simon Chapman AO agrees. But highly regarded economists including Chris Richardson, Alan Kohler and Professor Richard Holden argue that exorbitant cigarette excise is the cause of the boom in illegal cigarettes and has to be reduced. Holden supports a temporary cut of cigarette excise to zero and cites previous examples where excise had been cut to zero to allow governments to regain control of legal supply. Australian supporters of sky high cigarette excise and super restricted vape availability are not the first zealots to underestimate how powerful market forces can be. NSW Labor Premier Chris Minns and Tasmanian Liberal Premier Jeremy Rockcliff also want to see cigarette excise cut. In the meantime, the Australian government, health establishment and most mainstream media will have keep defending a policy that burns a $7-12 billion hole in the federal budget every year while also incentivising organised crime to keep importing and selling massive quantities of illegal cigarettes, tobacco and vapes. There is only one way this can end. And that’s with some politicians, the health establishment and most mainstream media eating a giant shit sandwich. Pride goes before a fall.