The decline in Illicit Consumption was underpinned by a 21.9% reduction in Chop-chop volumes, which was partially offset by a 14.4% increase in the consumption of Non-Domestic Illicit cigarettes.
Legal Domestic Consumption declined by 9.0%, resulting in a slight increase in Illicit Incidence, rising by 0.2 percentage points from to 13.5% to 13.7%.
Our estimates indicate that the Tax Loss due to Illicit Consumption of cigarettes and Chop-chop rose by 5.8% to AUD 1.9 billion in the fiscal year 2016/17, driven by higher Excise Tax rates.
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