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Understanding consumer motivations, substitution behaviours and price sensitivity is therefore important in informing complementary policy responses aimed at reducing the demand pull that sustains the market. While excise has been increased to make it too expensive for smokers to continue their habit, economists believe the huge gap between legal and illegal cigarettes of up to $40 a pack has created a financial incentive for people to tap the illicit market

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However, since 2017, illegal cigarette yearly seizures have almost tripled, and the amount of loose tobacco caught has almost quadrupled