The Coalition has signalled it may keep Labor's savings measure of a 50% increase in the tobacco tax, owing to what Tony Abbott described as a "budget emergency".
Abbott said he would be reluctant to reject tobacco savings measures announced by the Treasurer, Chris Bowen, just over a fortnight ago, even though the opposition has been highly critical of them.
"Given there is a budget emergency, we are going to be very reluctant to reject measures, even measures such as [the tobacco excise], that we don't like," Abbott said.
The tobacco tax rise, a 50% increase over four years, raises the price of an average pack of cigarettes by a dollar in the first year and by up to $5.25 by the end of 2016. It will push the price of a packet of cigarettes to more than $20 in 2016 and is expected to raise $4bn.
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