AACS: DOB IN A CRIMINAL THIS CHRISTMAS

December 18, 2017: This Christmas, in the absence of the proper support from the relevant authorities, the Australasian Association of Convenience Stores (AACS) is encouraging people to dob in people selling illicit tobacco.
Cigarettes with branded logos, tax-free and with no quality control standards, are being sold in local markets, out the back of cars and through dishonest retailers around the country.
If you see these products being sold, the AACS encourages you to inform the police and report your concerns to the Australian Taxation Office on 1800 060 062 or at www.ato.gov.au/reportaconcern.
Illicit tobacco accounts for nearly 14% of the total tobacco market in Australia, according to KPMG[1] estimates, and illicit products are being sold with impunity across Australia to anyone, potentially even minors, costing the Australian Government over $1.6 billion per annum in lost tax revenue.
AACS CEO Jeff Rogut says consumers may think they are saving some money by purchasing illicit tobacco products but in reality, they may be doing themselves considerable harm.
“With no genuine country of origin, no quality control standards, and no idea what these products contain, consumers may be putting themselves at more risk than they realise,” Mr Rogut says.
“They are also, perhaps unwittingly, participating in a criminal market that is spiralling out of control. The gangs who supply these products are profiting in huge numbers and, with the high taxation applied to legal tobacco, retailers of legal tobacco products are being targeted by violent robberies at a frightening rate.
“A coordinated response is needed to address this issue and to help honest retailers feel safe again. Part of the solution is to crack down on those unscrupulous sources of illicit tobacco in the community, so if you see someone selling illegal cigarettes, dob them in,” he says.
Illicit tobacco costs responsible retailers of legal tobacco products millions in lost legitimate sales yet no-one – not the police, the ACCC, Border Force, the Department of Health or local councils – has been willing to put their hand up to seriously tackle this crime.
Honest retailers of legal tobacco whose businesses are suffering are fearing for their lives, afraid to speak up for fear of violent retribution at the hands of the criminal gangs flooding the market with illegal products.
The AACS has consistently reinforced the major impact the trade of illicit tobacco has on responsible retailers of legal tobacco products.
“Australia is one of the world’s most lucrative markets for illicit cigarettes because of the high taxes on legal tobacco. Illicit tobacco has also become a major public safety issue,” Mr Rogut says.
“Adding to the burdens experienced by retailers are the higher insurance costs and additional security requirements they must have in place.
“The AACS will continue to pressure Government to issue a clear directive so the responsible authority is aware of the extent of this illegal activity and its role in tracking down these criminals and bringing them to justice.
“In the meantime, and in the interests of public safety in local communities, we encourage people who see this crime play out to speak up,” he says.
A summary of AACS research into public opinions on the illicit trade of tobacco is included below. 
Further information:
Jeff Rogut
Chief Executive Officer
Australasian Association of Convenience Stores
Ph: +61 467 873 789
Media enquiries:  
Stephen Naylor
Wise McBaron Communication
Ph: +61 (2) 9279 4770                   
AACS RESEARCH: PUBLIC ATTITUDES TOWARDS ILLICIT TOBACCO
A survey commissioned by the AACS and completed in September 2016 shows that: The biggest single consumer concern is that it is a revenue-earner for organized crime, who use that revenue to expand their criminal activities, including into socially damaging areas like ice production and distribution.
A total of 4,000 Australian consumers aged 18+ years (and eligible to vote in State/Territory and Federal elections) were interviewed using a combination of online and telephone interviews.
A summary of the key findings is included overleaf.
THE VIEW OF CONSUMERS: PUBLIC OPINIONS ON ILLICIT TOBACCO
 
[1] Illicit Tobacco in Australia 2016, KPMG, May 2017