Use of less expensive and easier-to-counterfeit illicit tobacco has grown since plain packaging for cigarettes was introduced in 2012, according to a study.

Illicit tobacco consumption represented 13.3 per cent of the market in the first six months of this year compared with 11.8 per cent for all of 2012, according to the study by consultants KPMG. Contraband and counterfeit cigarette volumes rose while unbranded loose tobacco (chop chop) declined, states the study paid for by the country’s largest cigarette companies; British American Tobacco Australia, Philip Morris Ltd and Imperial Tobacco Australia.
“This report shows that smugglers and counterfeiters have been the big winners in Australia since the implementation of plain packaging at a great loss to the treasury,” Philip Morris International said in a statement.
Cancer Council Australia accused tobacco companies of playing up the hike in illicit trade to roll back plain-pack laws, AAP reported.