Give Cigars Back to the People

We understand and support the need to tax cigarettes, cigars and loose tobacco.  We believe that it is a gross injustice that the excise tax and duty on a cigar can quite often equate to between 500% - 1000% more than the cost of the cigar at its source.  

Why Should a Single Cigar exceed the cost of a packet of cigarettes?

Current excise tax on Cigars has priced the legal consumable outside the reach of the average person creating an elitist culture and promoting grey/black market trafficking in an attempt to subvert the efforts of tax collectors.  It is also creating a haven for counterfeit opportunists.

A cigar purchased at retail online in the USA for $6.00 (20 grams) ends up costing over AUD $35 just in excise and GST (excluding freight and conversion costs) 

We are asking the government to consider revising the Tobacco Excise Rate Tariff Items 5.1 & 5.5 for Cigars on a more equitable basis by introducing a tiered system. 

Tariff Item 5.1 increasing the weight limit from 0.8 grams to 12.5 grams and 25 grams per stick and the application of a flat rate tax per stick not exceeding AUD $2.00 and AUD $5.00 respectively. 

Tariff Item 5.5 applicable tax rate per kg for cigars exceeding 25 grams per stick

We believe that this approach will lead to greater compliance and an increased tax contribution, eliminating grey/black markets for these products and counter the efforts of counterfeit contraband from illegitimate sources.