The federal and state governments collect considerable income from the sale of tobacco products. Around a quarter of the retail price of a packet of cigarettes is accounted for by federal excise, and a further third by state or territorial licence fees (depending on the level of fee charged), imposed on wholesalers and retailers of tobacco products. Table 7.1 shows an approximate price breakdown on a popular brand of 25 cigarettes in 1995, assuming a state tobacco licence fee of 100% (the fee currently imposed in Victoria, New South Wales, Australian Capital Territory, South Australia, Western Australia, Tasmania and Northern Territory).(1,2)
7.1 Federal excise 7.2 State and territorial licence fees 7.3 Total government revenue from federal tobacco excise and state and territorial licence fees 7.4 Trends in real price of cigarettes in Australia 7.5 Tax as a percentage component of retail price, and total tax paid per 20 cigarettes -- international comparisons 7.6 Effects of taxation increases on consumption 7.7 Policy options for changes to federal excise 7.8 Effects of taxation increases on government revenue 7.9 Tobacco industry responses to taxation issues 7.10 Public attitudes
