Chalmers Rejects Calls to Cut Tobacco Excise, Prioritizes Compliance

Australia's Treasurer Jim Chalmers has dismissed calls from NSW Premier Chris Minns to lower the tobacco excise tax. Chalmers stated that focusing on compliance is a more effective approach to reducing tobacco consumption. He explained that the decrease in tax revenue from cigarettes is a result of two factors: fewer people smoking and the rise of illegal tobacco. "I don't think the answer here is to make cigarettes cheaper for people," Chalmers said in the video. "I think the answer here is to get better at compliance." The government has committed significant resources to combatting illegal tobacco in recent budget updates. This decision highlights the ongoing debate surrounding tobacco control and tax policy in Australia.