VICTORIAN MINISTER SPEAKS SENSE ON LINK BETWEEN EXCESSIVE TOBACCO EXCISE AND THE GROWTH IN ILLEGALTOBACCO, FIRE-BOMBINGS AND CRIME GANGS

Remarks made by the Victorian Minister responsible for tobacco regulation, Enver Erdogan, that acknowledge the direct link between excessive federal tobacco excise and the alarming rise in illicit tobacco trade, firebombing, and organised crime, have been welcomed by the Australian Association of Convenience Stores (AACS).

AACS CEO Theo Foukkare said Minister Erdogan’s remarks highlight the urgent action needed from the Albanese Government to adopt a national approach to tackling illicit tobacco and excessive taxation – rather than policies that inadvertently strengthen criminal enterprises, which is currently the case.

“Minister Erdogan’s comments underscore what AACS has long argued: sky-high tobacco taxes have fuelled a dangerous underground market that’s putting legitimate retailers at risk and given more dangerous power to criminal networks,” Mr Foukkare said.

“Minister Erdogan’s was spot on when he said “It’s clearly led to the creation of this illegal market. Tobacco is an addiction, and the illegal product is a lot cheaper,”.

Mr Foukkare said the Victorian Government’s tobacco licensing scheme – which won’t be active until the end of the year – is “a step in the right direction”, however its efforts to curb illicit tobacco related crime are being stifled by the Albanese Government’s failure to take responsibility for managing the cause of the crime crisis from a federal level.

“As Minister Erdogan rightly pointed out, the underlying cause of the conflict remains the price of legal tobacco, driven by federal excise policies that no longer encourage adult smokers to quit smoking and instead send them unknowingly into this dangerous black market,” Mr Foukkare said.

“We urgently need stronger enforcement measures and a balanced regulatory approach to protect legitimate retailers and consumers – and Victoria remains the only state without an active licensing framework – which leaves retailers vulnerable to this ever growing, unchecked and deadly expansion of the black market.

“With illegal cigarettes available for $10 a pack, there really is only one way to break the business model of the crime networks that have a stranglehold on the illegal tobacco trade – and that is to re-evaluate tobacco excise and drive Aussie adults who do choose to smoke back into the legal, regulated market, where they will at least interact with health warnings and quit messaging,” he said.

Mr Foukkare also praised Minister Erdogan’s acknowledgment that Victoria’s Tobacco Licensing Committee has reduced the cost of a license, following feedback from AACS retailers.

“Minister Erdogan has shown strong leadership in recognising the concerns of our retail members and ensure the licensing scheme is fair and effective.

“It’s now time for the Albanese Government to empower the states and territories, with a national approach to tackling illicit tobacco and the widespread black market it operates in,: Mr Foukkare said.