Labor is planning to raise taxes on cigarettes if elected to pay for the so-called Gonski education reforms, potentially pitting a slug on smokers against any Coalition plan to increase the GST rate or impose it on fresh food.

Sources have told Fairfax Media that the federal opposition is considering another round of three 12.5 per cent increases, which sources said would net $40 billion over 10 years.

The increase would push up the cost of cigarettes in Australia to well beyond $1 per stick, making Australia's tobacco among the most expensive in the world.

The tobacco excise was last increased in September of this year and is due to go up another 12.5 per cent in September 2016 on top of indexation.