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Tobacco Tax Hikes Fuel Australia’s $2 Billion Black Market

2/15/2026

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Story summary
  • High tobacco prices in Australia, driven by eight tax hikes in ten years, fuel a black market accounting for up to half of tobacco sales.
  • A pack of midmarket cigarettes costs about 55 Australian dollars in Australia, nearly double the price in New York City.
  • Pat Felvus, a retired math teacher from suburban Melbourne, sought out a cigarette dealer to illustrate the price disparity.