British American Tobacco Australia (BATA) has asked the federal government for a reduction in the corporate tax rate and the abolition of state payroll taxes.

In a submission to the treasury's review of the tax system, the cigarette manufacturer also warned the government against increasing tobacco taxes. BATA said hikes  in excise above regular six-month increases linked to inflation could encourage poorer smokers to buy black-market products and reduce government revenue.
The company said current excises and taxes make up 70 per cent of the price of a cigarette packet . A packet  costs around AUD 12 (EUR 6.15). (pi)