In an ongoing battle against illicit tobacco, the Australian government announced a major crackdown aimed at disrupting illegal trade and reducing smoking rates, but the move has drawn mixed reactions. The Federal Government has committed an additional $156.7 million to law enforcement agencies, augmenting an existing $188.5 million initiative to curb the black market in tobacco.
PHOTO: The Australian Association of Convenience Stores reports high legal tobacco prices as responsible for demand in illicit products.
“This is a major investment to strengthen our work cracking down on criminals bringing illegal tobacco into Eden-Monaro, because it has no place in our community,” stated Kristy McBain, Member for Eden-Monaro.
The strategy includes $49.4 million to enhance the Australian Federal Police-led Criminal Assets Confiscation Taskforce and $7 million for the Australian Border Force to improve detection at borders. Ms McBain emphasised the impact on young people, noting, “Not only are we encouraging people to quit smoking, we’re cracking down on illegal cigarettes and vapes – which only lead to worse health and economic outcomes.”
However, the Australian Association of Convenience Stores (AACS) criticises the plan as insufficient. AACS CEO Theo Foukkare likened the government’s plan to “trying to use a nut to smash a sledgehammer,” arguing that the funding is inadequate against the multibillion-dollar black market.
PHOTO: Cigarettes found in the discovery of more than $2 million worth of illegal tobacco products. CREDIT: NSW Police.
Mr Foukkare asserts, “If the Government is serious about illegal tobacco, it would do two things – stop the illegal tobacco boats and pause the excise rises on legal tobacco.”
PHOTO: Illegal tobacco sold is part of a multibillion-dollar black market impacting business operating within the law.
According to the AACS, high legal tobacco prices are driving demand for illicit products, which are considered a low-risk, high-reward crime. The AACS suggests a comprehensive approach involving an excise freeze, legalisation of vaping, and stronger border controls, which could potentially yield $18.6 billion in additional excise over four years.