Tobacco Excise Cuts: Dangerous, Misguided Arguments

Reducing the tobacco excise as a way of tackling the illegal tobacco industry is a simplistic, misguided and ineffective solution to a complex problem, that could undo decades of effective public health policy, the Australian Medical Association said today.

AMA President Dr Danielle McMullen said there had been a worrying increase in calls to reduce tobacco excise, with the idea, not surprisingly, backed by big tobacco.

"There's absolutely no evidence to support the idea that reducing excise will impact illegal tobacco — in fact the evidence says the opposite, with jurisdictions that have reduced the excise seeing a horrible combination of increased smoking rates and no tangible impact on the illegal tobacco trade," Dr McMullen said.

"The arguments being made conveniently ignore the evidence and factors that drive the illegal tobacco trade. This is a simplistic and misguided solution to a complex problem that risks undermining decades of successful public policy to reduce rates of smoking."

Dr McMullen said Canada had halved its tobacco excise to combat smuggling across the US border, but the move had led to more people, particularly young people smoking, and fewer people quitting.

"Meanwhile the illegal trade persists even in countries with much cheaper cigarettes, including in countries like Vietnam, the Philippines and Senegal where tobacco is very cheap," she said.

"If we look to the United Kingdom, when taxes on tobacco were introduced, the illicit trade rose but instead of cutting taxes under pressure from the tobacco industry, the government kept the tax and implemented a comprehensive enforcement strategy and the size of the illicit trade of tobacco declined."

The solution to the issue of illegal tobacco was stronger enforcement in jurisdictions, Dr McMullen said.

"We are seeing sub-optimal enforcement in some jurisdictions, gaps in supply chain controls and inadequate licensing provisions and monitoring," Dr McMullen said.

"We need a comprehensive and fully resourced enforcement strategy to tackle the illegal tobacco trade.

"General practitioners also must be supported to spend the time they need with patients who are struggling with addiction to nicotine. GPs provide high-quality and cost-effective health interventions for patients addicted to nicotine and additional reform and support is required to continue these services, particularly in rural, regional, and remote areas."

Dr McMullen said it would be devastating to see a reversal in the success of Australia's world class smoking reduction measures because of an unwillingness to see the issue of illegal tobacco for what it is — an illegal product that requires improved enforcement.

"We have led the world on this incredibly important public health issue, and smoking rates are now at a historic low with only 8.3 per cent of people aged 14 and over smoking. It would be tragedy to see these results reversed."

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