Pyne says reducing number of smokers would reduce health costs, but refuses to confirm tobacco tax hike

Cabinet Minister Christopher Pyne has hinted there's merit in raising taxes on cigarettes for health reasons.

"One of the most significant ways of reduce health costs is reduce the number of smokers, it makes a direct impact on the cost of health to the rest of the community" Mr Pyne told the TODAY Show today when asked about the prospect of the federal government adopting the measure.

But he declined to confirm whether increased tobacco taxes would be included in the budget on May 3.

"I'm not going to speculate," he said, saying he would know the policy before it was revealed, but would not be commenting before May 3.

"You'll know that in the budget, you don't have to wait long."

Labor MP Anthony Albanese told the program the government was acting as if in opposition.

"Poor old Christopher doesn't realise that he's the government," he said.

"This is the only government that's ever been in opposition for its entire three years," Mr Albanese said, to which Mr Pyne retorted, "your zingers are getting very old".

"Every time you get asked a question you talk about Labor," Mr Albanese said.

Labor has seized on reports the government will copy its policy to double taxes on cigarettes.

"I note that the government, after having complained about our policy has now ... pretty clearly indicated they'll be in the same space on election day," shadow treasurer Chris Bowen told ABC TV.