Illegal Tobacco Cost Australia A$1 Billion: KPMG Report
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Illegal tobacco sales deprived the Australian government of about A$1 billion ($946 million) of taxes in the 12 months ended in June, according to a report commissioned by cigarette makers.
Accounting firm KPMG LLP released the study today as the first since a federal law prohibiting the sale of cigarettes in branded packages took effect Dec. 1 to discourage smoking and reduce related spending on health care. Illicit sales increased 1.5 percentage points to 13.3 percent of total shipments, while consumption didn’t drop in the year, according to the report.