PETITION TO THE HOUSE OF REPRESENTATIVES

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled:
The petition of the undersigned residents and citizens of Australia draws to the attention of the House that the current excise and customs duty framework for tobacco products applies a uniform, weight-based rate across all categories of tobacco, including premium cigars. This uniform approach fails to recognise the distinct nature of premium cigars or their patterns of consumption, and results in disproportionately high taxation compared with the low-frequency, non-addictive use typical of these products.

Premium cigars are generally purchased by adult consumers for occasional use, celebration, or collection, rather than daily or habitual consumption. They differ fundamentally from mass-produced tobacco products such as cigarettes or loose tobacco, both in their production methods and in their consumer base. The current excise regime, designed primarily to address the public health impacts of high-volume smoking, thus applies in a way that is misaligned with the actual risk and consumption profile of this small, niche sector.

This misalignment has imposed significant strain on small Australian importers and retailers, reduced consumer access to legitimate, regulated products, and risks encouraging illicit trade in high-value cigars. While maintaining strong support for Australia’s public health and anti-smoking objectives, the petitioners submit that tax policy should distinguish between habitual consumption products and occasional-use luxury goods, in order to achieve fairness, proportionality, and regulatory consistency.

We therefore respectfully request the House of Representatives to:

Initiate a review of the Excise Tariff Act 1921 and Customs Tariff Act 1995 with a view to introducing a distinct excise and excise-equivalent customs duty rate for premium cigars. This revised classification should:

1. Recognise premium cigars as a separate category within the tobacco excise framework, defined according to internationally recognised criteria (such as those of the World Customs Organisation for cigars wrapped in whole tobacco leaf and containing a defined minimum tobacco content per stick); and
2. Introduce a substantial reduction in the current excise rate applied to premium cigars in Australia. The existing weight-based taxation, while established, levies an excessively high burden that disproportionately impacts the luxury, low-frequency consumption market of premium cigars. A lower tax rate is essential to ensure a more equitable and proportionate taxation basis.

Such a reform would preserve Australia’s public health objectives while ensuring that taxation policy remains proportionate, fair, and consistent with international practice.