Illegal tobacco crops costing Wimmera retailers

Erin Witmitz
MARCH 12 2018
Mail-Times
AUSTRALASIAN Association of Convenience Stores chief executive Jeff Rogut believes illegally-grown tobacco is robbing shop owners in regional Victoria of up to $5000 a month.

His comments come after Kaniva and Nhill police, along with Australian Tax Office detectives seized a 19-hectare tobacco crop at Telopea Downs last week.

The excise value of the crop was $8.7 million.

Mr Rogut said illegally-grown tobacco had an enormous flow-on affect to retail owners.

“This is a real issue in regional areas and for retailers, it affects sales and profitability,” he said.

“In areas where illegal tobacco is being grown or sold, retailers can lose between $300 to $1000 a week.

“There is a lot of money in tobacco sales and it is still a major category in the retail market.”

Mr Rogut said there needed to be tougher penalties for people who grew tobacco illegally.

“We need more of a focus on street level tobacco,” he said.

“A lot of people take the chance to grow it because the fines and risks don’t measure up to the huge amount of money that can be made.”

Mr Rogut said there was also issues with illegal tobacco being imported to regional areas.

“It is such a lucrative market,” he said.

“When people buy illegal cigarettes, they have no idea what is in it or what country it’s come from, so the consumer is losing too.

“The only people gaining from this market are criminals.”

Australian Tax Office assistant commissioner Peter Vujanic said authorities took the detection and prosecution of illegal tobacco growers very seriously.

“Engaging in the illegal tobacco trade not only supports organised crime syndicates, it also robs the community by denying them of taxes that would be raised,” he said.​

“Growing tobacco without an excise licence has been illegal in Australia for more than a decade and there is no legal avenue for Australian grown tobacco to be manufactured and sold.

“The tax office is concerned that farmers in these areas might be targeted by organised criminal organisations or be at risk of unintentionally becoming involved in criminal activity.

“If anyone is approached about growing tobacco or think they might be unwittingly involved in growing illegal crops, they should let the tax office know as soon as practicable.”