The Australian Government faces losing up to $5 billon each year, due to illicit tobacco sales and increased vaping.

Supermarket and petrol station bosses are warning the federal government may face as much as a $5 billion black hole in its budget from lost tobacco tax and uncollected GST.

This cause comes from collapsing tobacco sales and smokers switch to illicit tobacco, counterfeit smokes and increased vaping.

CEO of the Australian Association of Convenience Stores, Theo Fourakke, told Joe Hildebrand that there are now “1.3 million adult vapers”.

“The products are completely unregulated, no one knows what’s in them,” said Mr Fourakke.

See more highlights from Deb Knight below: