Tobacco giant Philip Morris used the occasion to press for less expensive legal cigarettes, according to a previously secret parliamentary session that was made public.
The business was controversially asked to testify before a Senate committee on Monday over the thriving illegal tobacco trade.
To the dismay of anti-smoking activists, the discussion was held in private and the transmission was cut.
“Today, the tax on a legal $37.95 pack of 20 cigarettes is at least $34, while illicit cigarettes sell for half this,” the company representative, whose name was redacted, stated. “If the parliament wants to materially reduce illicit tobacco and bring consumers back into regulated channels, that gap must be narrowed,” according to an uncorrected proof of the transcript obtained by AAP.
“On almost any street corner you can find a packet of comparable illicit product for between $12 and $25,” the same speaker added.
Philip Morris stated that it was “very credible” that, absent a reduction in taxation, it would be impossible to sell tobacco legally by 2030.
Tobacco giant Philip Morris exploited the opportunity to campaign for cheaper legal cigarettes, according to a previously secret parliamentary session (stock picture).
According to the Illicit Tobacco & E-cigarette Commissioner, the illicit market accounts for 50–60% of all tobacco sales, or $4–7 billion.
Philip Morris maintained that “three forces acting together: price, access, and enforcement” were responsible for the expansion of the black market.
It said that since four million Australians use nicotine, it would be better for community safety, public health, and the government’s budget if they did so lawfully. “We are not here to contest public health objectives.” The speaker stated, “We are here to provide evidence on where regulation is failing and what will restore regulatory control.”
Philip Morris’ evidence, according to Laura Hunter, chief executive of the Australian Council of Smoking and Health, was “like inviting mosquitoes into a hearing on malaria.”
“You’d almost think their real crisis was their tax bill,” she said to AAP. “You had a tobacco giant warning about pressures on its business while profiting billions from products that kill 66 Australians every day.”
Requests for comment from Philip Morris have not received a response.
The government and public health advocates felt that the company’s presence in Canberra violated an international treaty that Australia had ratified in the mid-2000s.
Nonetheless, the committee, which is controlled by Liberals, gave it a closed-door session and permitted the executives of Philip Morris to testify.
The chair of the committee, South Australian Senator Leah Blyth, stated that it didn’t “make sense to have an inquiry into illicit tobacco and not hear from all entities impacted.”
It was decided to make the transcript public over opposition from members of the Labour and Greens committees.
It had not yet surfaced on the parliament’s website as of Thursday afternoon.
According to Philip Morris, it presented itself to the Senate as a “legal, taxed, and regulated company working toward a smoke-free future.”
