Massive fines for illegal tobacco retailing

Patrick Avenell
5th January, 2014
It’s been 14 months since the Federal Government implemented plain packaging for tobacco products and the black market for these products has surged to its highest ever point, 13.3 per cent, leading to the various states governments investigating ways to combat this activity.
The Victorian Government today announced that the penalty for selling illicit tobacco products, such as packs carrying branding, will be increased four-fold to $34,600 for an individual and $173,200 for a business.
This news was immediately welcomed by legitimate retailers.
“We support any measure that cracks down on the black market trade of tobacco, a market that has increased exponentially since the introduction of plain packaging and continues to flourish as a result of the relentless excise increases on legal tobacco products,” said Jeff Rogut, CEO of the Australian Association of Convenience Stores.
“The illicit trade of tobacco significantly impacts the retailers of legal tobacco products, particularly small businesses, which suffer a critical loss of income.”
Rogut called on the other state and territory governments to implement similarly tough penalties, as did supplier British America Tobacco Australa.
“We’re hopeful the other states and territories will now take a much tougher stance on illegal cigarettes and chop chop by raising fines as high as Victoria,” said spokesperson Scott McIntyre. “The majority of the 25,000 retailers around the country are doing the right thing, but there are many who are breaking the law and every effort needs to be made stop them.”