Retailers call for government to crack down on illegal tobacco

Anna Evans
4 September, 2017
Ballarat Courier

Retailers call for government to crack down on illegal tobacco

Recent cigarette price hikes could help drive impoverished smokers into black-market alternatives and convenience stores want the government to do something about it.

Following the latest instalment of excise increases implemented last Friday, retail industry advocates want their sales protected but health advocates argue the trade is still small and all amounted to a poor health habit.

Earlier in the year, The Courier reported Ballarat had its own easily accesible black market in illegal tobacco trade with stores involved in selling the products often posing as gift shops.

The Australasian Association of Convenience Stores is calling on the federal government to take action to combat such establishments.

With KPMG estimates of an annual $1.6 billion loss in excise tax for Australian businesses, the organisation is asking for government protection for legal retailers.

“It’s been going on for a long time, since 2012. With the large number of excise increases, consumers are seeking a cheaper alternative,” AACS chief executive officer Jeff Rogut said. “While there are big illegal tobacco seizures at the border, if the product gets through no one is taking action. No one is taking ownership.”

He flagged not only the economic impact but also the impact on retailers, who he said thieves now target for tobacco. He said despite the health implications, the point is that legal trade should be protected from illegal products, where consumers have no idea where a product comes from and what’s in it.

Quit Victoria director Dr Sarah White said it’s hard to know what illegal trade there is.

She added surveys had shown illegal tobacco use was very low.

“Of course we wouldn’t want the government not to stop it and that’s just what they’re doing. We don’t know what the quality of illicit tobacco is.

“We don’t know how it’s made, what extra chemicals it has or if it carries fungus. But at the end of the day, no other consumer product kills more than tobacco.”

A Department of Immigration and Border Protection spokesman said more than 400 tonnes of illicit tobacco had been stopped from reaching the black market and more than 100 individuals have been charged since the Tobacco Strike Team was established in 2015.

The team was assured another $7.7 million in government funding in May 2016.