Cabinet Minister Christopher Pyne has hinted there's merit in raising taxes on cigarettes for health reasons.
"One of the most significant ways of reduce health costs is reduce the number of smokers," Mr Pyne told the Nine Network on Friday when asked about the prospect of the federal government adopting the measure.
But he declined to confirm whether increased tobacco taxes would be included in the budget on May 3.
Labor has seized on reports the government will copy its policy to double taxes on cigarettes.
"I note that the government, after having complained about our policy has now ... pretty clearly indicated they'll be in the same space on election day," shadow treasurer Chris Bowen told ABC TV.
