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The smoking tax Laffer curve: Australia is not exempt from the laws of economics

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VUBot

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Over the past decade, the excise rate per cigarette has tripled from 46c to $1.40. The excise now accounts for $28 of the average $40 price for a packet of 20 cigarettes. For some time a rising tax was associated with the twin benefits of falling smoking rates and rising revenue, but after peaking…

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