But now there are calls to ease up as more and more Aussies turn to the black market.

New figures show the government is raking in way less revenue, and not because people are giving up smoking but because they’re turning to bootleg cigarettes.

Critics say Australia has overshot the sweet spot.

Since it was ramped up in April 2010, Australia’s tobacco excise has risen by almost 390 per cent.

That’s seen a pack of Winfield 25s rise from $13 to $58, costing a pack-a-day smoker $21,000 a year!

Smokers are now resorting to cheaper and illegal alternatives.

The ATO estimates illegal tobacco makes up at least 15 per cent of the national market, with the battle for that market exploding in recent years.

As the black market takes off, smoking rates have stagnated at 12 per cent. Which is low. But not low enough for the government, which aims to reach 5 per cent by 2030.

To get there, it’s planning to hike the tobacco excise by at least another 15 per cent. But it’s a move critics say could do more harm than good.