Knox traders say smuggled tobacco is hurting businesses

Emily Webb
October 29, 2013
Knox Leader

SMUGGLED tobacco is being sold in Knox and traders say it is hurting their businesses.

In particular, a Boronia shop that sells illicit cigarettes has been the subject of complaints from concerned traders.

The tobacconist shop in question claims it has the “lowest prices”.
Another Boronia trader, who did not want to be identified, said he was extremely concerned about the cigarettes sold from the shop and the flow-on effect to his business, which sells legal tobacco as well as other goods.

The trader said people travelled from all over Knox and the hills for the dodgy cigarettes.

He said within weeks of the store opening more than a year ago, he sent one of his staff to investigate.

He said his employee bought 100 cigarettes for $25.

These were packaged in a blue and white box.

The product is believed to be illicit tobacco known as “chop-chop” pre-rolled for the customer.

Chop-chop is illegally grown or produced tobacco.

There are currently no licensed tobacco growers in Australia.

In one 20-minute period, Leader saw two people visit the store and exit with blue and white boxes in a paper bags.

The concerned trader said within weeks of the shop opening, he contacted authorities with his concerns.

He said he had noticed a serious decline in his profits since the other shop came to town.

However, one year on, the man said, nothing had happened and the rival store was doing a roaring trade.

The trader said he had also contacted the Australian Tax Office and Knox Council about the store but had heard nothing.

The ATO said the majority of illicit tobacco being sold in Australia was imported rather than domestically grown.

Angelo Kourambas, Knox Council director of city development, said if a trader was suspected of selling illicit products, council officers may alert the ATO or police.

Council officers did not have the authority to deal with traders over the sale of illicit products.