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According to the Australian Taxation Office, the Canberra-based bureau has agreed to hike tobacco excise and excise-equivalent customs duty by an additional 5% per year for three years, starting in September last year, in addition to ordinary index-linked rises

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One of us (LaFaive) has catalogued two dozen other studies from university scholars, consultants and think tank researchers that show cigarette tax noncompliance to be a significant issue A 2005 paper in the Journal of Health Economics by economist Mark Stehr, titled Cigarette Tax Avoidance and Evasion, concludes that up to 85 percent of the after-tax change in consumption is a function of tax evasion and avoidance