Black market tobacco trade reaches ‘crisis point’, crippling Victorian traders

Aneeka Simonis
June 23, 2017
Herald Sun
AUTHORITIES are being urged to clamp down on illegal tobacco traders as the black market continues to flourish.
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Desperate retailers are struggling to compete with the low-cost illicit tobacco market, which is said to have reached “crisis point” across the state.
Melbourne’s west and southeastern suburbs are saturated with illegal tobacco products, according to Australasian Association of Convenience Stores chief executive Jeff Rogut.
Serious and organised crime groups dominate the black trade, flipping profits of up to 10 times the retail price of products illegally imported from countries such as China.
Mr Rogut said dodgy dealers primarily targeted community markets that allowed them to fly under the radar while raking in enormous profits.
The low-cost illicit tobacco market, which is said to have reached ‘crisis point’ across the state.

“It is unacceptable that a person can walk into their local community market, choose from a range of illegal tobacco products on display, including loose tobacco, and make a purchase without paying the tax a legal tobacco product would attract, while the people selling these products have no fear of being penalised,” Mr Rogut explained. Serious and organised crime groups dominate the trade, flipping profits of up to 10 times the retail price of products illegally imported from countries such as China.
Mr Rogut urged the government to do more to track down criminals and “bring them to justice”.
“The need for a genuine response to illicit tobacco crimes is a matter of urgency,” he said.
“Violent robberies targeting cigarettes are a regular occurrence among responsible retailers. High prices of legal tobacco, artificially imposed as a result of excessive government taxes, are putting people’s lives in danger.”
He urged to government to impose a moratorium on future tobacco excise increases to bring the dangerous situation “under control”.
aneeka.simonis@news.com.au
@AneekaSimonis
http://www.heraldsun.com.au/news/victoria/black-market-tobacco-trade-reaches-crisis-point-crippling-victorian-traders/news-story/fb34b60511bc0d367024ef9a887cba41