2.8 Tobacco consumption not captured in government or industry figures

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2.0 Introduction

2.1 Production and trade data as a basis for estimating tobacco consumption

2.2 Dutiable tobacco products as an estimate of tobacco consumption

2.3 Self-reported measures of tobacco consumption

2.4 Expenditure on tobacco products

2.5 Industry sales figures as estimates for consumption

2.6 Comparisons of quality and results using various estimates of tobacco consumption in Australia

2.7 Per capita consumption in Australia compared with other countries

2.8 Tobacco consumption not captured in government or industry figures

2.9 Best estimate of recent tobacco consumption in Australia

2.10 Factors driving reductions in tobacco consumption

Acknowledgments

References

Not all tobacco consumed in Australia is reflected in official records of manufacturing and imports-exports or excise and customs receipts. Increasingly around the world many smokers are managing to buy cigarettes from informal channels. Illicit tobacco products are significantly cheaper because suppliers have avoided paying excise or customs duty and goods and services tax which in Australia makes up almost 70% of the retail value of tobacco products sold through legitimate channels.

Since 1997, roughly processed tobacco known as chop-chop has been sold illicitly in Australian markets and some shops. Estimates of the total volume of chop-chop sold in 1999–2000 range from 400 to 2600 tonnes.83 Australian tax office estimates of the quantities of tobacco diverted illegally are 243,000 kg for 2001–02, 295,000 kg for 2002–03, 313,000 kg for 2003–04 and 347,000 kg for 2004–05.84

Based on data from the Australian Customs Service and industry advice, international business information consultancy, Euromonitor, estimates that contraband cigarettes—manufactured cigarettes on which neither excise or customs duty has been paid—increased from 3.0 to 3.9% of the total number of cigarettes smoked in Australia between 1999–2000 and 2004–0532—see Chapter 13, Section 13.7.3.