Australia to hike tobacco taxes to raise $4.7bn

The Australian government is to increase taxes on tobacco, raising A$5.3bn ($4.7bn; £3.1bn) as it seeks to offset a revenue shortfall.

Prices will rise by 12.5% per year for four years starting from 1 December.

The government said the move would also provide funds for treating cancer and providing stroke-related services.

The Labor party is expected to update budget figures on Friday, as it prepares to announce a date for an upcoming general election.

The government has struggled to return the budget to a surplus, despite promises to do so, because of a strong currency and falling commodity prices.