Australian budget measure may axe duty-free tobacco

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The travellers' duty-free cigarette allowance has come under threat in Australia from a Government proposal intended to promote the anti-smoking campaign--highlighting the global threat to travel-retail tobacco sales. Yesterday the Government announced a plan to make duty-free cigarettes subject to excise duty. To cover the tax, the price of a carton of cigarettes would rise by $A50 ($25).

The measure is supported by The Action on Smoking Health lobby group and has been recommended to the Government by Australia's National Expert Advisory Committee on Tobacco. Full details of implementation are expected to be announced in the May 22 budget.