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Plain tobacco packaging proven to have no effect, says ARA chief

A year after the implementation of the plain tobacco packaging in Australia, the Australian Retailers Association (ARA) said it has had no impact on legal tobacco volumes.

"The ARA has long argued these changes were an unnecessary burden for small to medium retailers, and it is now evident that this initiative has had absolutely no effect," said ARA Executive Director Russell Zimmerman in a news release.

The ARA chief said they received reports from retailers that illegal tobacco products are swamping the market.

“Since plain packaging was introduced on 1 December last year, legal cigarette sales overall have remained very stable while illegal sales have increased, suggesting people are smoking more and paying less. The cheap price segment which represents the lower end of the legal market has actually grown by 33 percent since plain packaging was introduced, according to industry today," he said.

He also emphasized that further excise and price hikes will only exacerbate the illegal tobacco trade.