Issue link: https://read.dmtmag.com/i/1544874
20 tobaccoasia Issue 3, 2026 May / June By Thomas Schmid The world's most expensive cigarettes Australia's tobacco control policies have long been among the strictest in the world. Through a sustained strategy of steep excise tax increases and tough regulations, the country has pushed cigarette prices to the highest levels globally. Today, a single pack of cigarettes in Australia typi- cally costs between A$45-55 (US$31-38), depending on the brand and retailer. According to a recent article by Victoria Kim, Australia correspondent for The New York Times, Australia now has the most expensive cigarettes in the world. In an article for the news- paper, Kim reported that "a pack of midmarket cigarettes costs on average about 55 Australian dollars, nearly double what it costs in New York City." She noted that the country implemented eight major tobacco tax hikes in only 10 years, part of a long-running strategy aimed at reducing smoking rates. The policy has indeed driven smoking prevalence downward over the past decade. Yet the extraordinary price levels have also created powerful incentives for smuggling and black market sales. The result, experts say, is a booming illicit tobacco economy that may now rival the legal market. A biblical flood of illicit tobacco and vapes Evidence of the scale of the problem can be seen in recent enforcement statistics released by the Australian Border Force (ABF). Between October and December 2025, ABF officers seized illicit tobacco and vape products representing approximately A$1 billion (US$698 million) in evaded duties, including 467 tons of cigarettes and loose tobacco. Australia's Illicit Tobacco and Vape Crisis Sky-high prices, organized crime and the struggle to contain a growing black market may cause the country to lose its battle. Australian law enforcement seizing illicit tobacco in a warehouse. Credit: ChatGPT/Thomas Schmid