A Freedom of Information request has revealed that taxpayers were left with a $12m legal bill following tobacco giant Philip Morris contesting Australia’s plain packaging laws in an international tribunal.

The ruling, which has since been upheld by the WTO, essentially killed off cigarette packaging printing in the country, as the highly-embellished brand focused boxes gave way to cheaper, mass produced designs, which were much cheaper to produce in Asia.

The Sydney Morning Herald and The Age spoke to Wayne Swan MP, who was part of the Labor team which introduced the laws in 2011, with Swan called by Australia to give evidence to hearings in 2015. The outgoing Labour politician told the publications that the costs are outrageous, particularly given that Philip Morris lost the case.

The case was argued under an investor-state dispute settlement through a Singapore-based international court, using an obscure Hong Kong-Australia investment treaty.

Under the court, the costs of arbitration are shared between the parties, meaning that from the bill of $23m, taxpayers coughed up $12m.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter