FRANKLIN Labor MHR Julie Collins says a policy that increases the price of cigarettes up to $40 a packet by 2020 will reduce the number of people who smoke and help ease Tasmania's health system.
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The federal opposition launched a policy on Tuesday that would continue the increase in tobacco excise from July 1, 2017, delivering four 12.5 per cent increases if it wins the next federal election.
Ms Collins said the approach would bring tax on cigarettes into line with 33 other countries including the United Kingdom, France and New Zealand, where tax accounts for 75 per cent of the cost of a packet of cigarettes.
"Tasmanians continue to lead the nation in rates of smoking, including young people," Ms Collins said.
"Labor's plan will help smokers quit and deliver significant savings for Tasmania's struggling health system," she said.
Ms Collins said the aim was to reduce the smoking rates and "put money back in their pockets".
The Parliamentary Budget Office says the policy would raise $3.8 billion over the four-year forward estimates period and $47.7 billion over the medium term.
Out of the 2.5 million Australians who smoke, 15,000 die annually from related illnesses.
Prime Minister Malcolm Turnbull told Parliament he would respond "respectfully" to the policy and sought further details on costings.
