Metcash has warned that rising tobacco excise and the growth of the illicit tobacco market are expected to weigh on first-half earnings.
MGA chief executive Martin Stirling said excise increases had failed to achieve the Federal Government’s intended public health outcomes, while contributing to escalating criminal activity and violence against retailers.
“We have examples in the media everyday of crimes being committed by organised criminals, where they fire bomb and destroy businesses across the east coast, in particular, but we’ve also seen examples of that in WA,” Mr Stirling said.
“It’s time for the government to listen to experts, including health experts and economists, about what a sensible excise tax setting policy should be and to make changes.
“Clearly what has happened over the past few years is not working, the problem is getting worse.”
Mr Stirling also pointed to Australian Bureau of Statistics data indicating organised crime now controls 80 per cent of the nicotine market.
