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  • Trends and latest findings

    The gross and net gaps both fell slightly this year. This follows a continual decrease in the importation of legal tobacco (down 456 tonnes in 2019-20). Detections of illegal tobacco only fell slightly (down 35 tonnes) with the drop in detected illegal tobacco offset by an increase in detected locally grown tobacco (chop-chop).

    Table 1 shows the tobacco duty reported, adjustments for compliance seizures, and the gross and net gap estimates from 2015–16 to 2019–2020.

    Table 1: Tobacco tax gap, 2015–16 to 2019–20

    Element

    2015–16

    2016–17

    2017–18

    2018–19

    2019–20

    Gross gap ($m)

    655

    978

    1,305

    1,571

    1,663

    Seizures of illicit tobacco ($m)

    135

    357

    470

    711

    754

    Net gap ($m)

    520

    621

    834

    860

    909

    Tax paid ($m)

    10,063

    10,969

    12,384

    12,858

    13,824

    Theoretical liability ($m)

    10,583

    11,590

    13,219

    13,718

    14,733

    Gross gap (%)

    6.2

    8.4

    9.9

    11.5

    11.3

    Net gap (%)

    4.9

    5.4

    6.3

    6.3

    6.2

    Figure 1 displays the same information as a chart.

    Figure 1: Gross and net tobacco tax gap percentages, 2015–16 to 2019–20

    Figure 1 shows the gross and net gap in percentage terms, as outlined in Table 1.

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      Last modified: 19 Oct 2021QC 55324