Will the tobacco tax hike help curb smoking?

The Rudd government has confirmed plans to increase the tobacco excise by 12.5 per cent every year for the next four years to raise an extra $5.3 billion in revenue. Health groups believe the measure will save lives by prompting tens of thousands of Australians to quit smoking, but the Opposition says it's just "another tax".

Smokers are expected to be hit by a 12.5 per cent tax hike on cigarettes each year for four years.