Labor MP claims tobacco wars are a result of federal govt’s smoke excise

The Labor Minister for tobacco regulation has hit out at the federal government, claiming that the tobacco wars are a result of their huge smoke excise, and that new taxes won’t stop the issue.

A Victorian Labor MP says the federal government is responsible for the disastrous tobacco war, which will only continue because of sky-high taxes.

And in an embarrassing U-turn, state MP Enver Erdogan admitted the licence fee to sell tobacco products would be less than first planned after “robust feedback” from retailers.

At least 130 firebombing attacks in the past two years have been linked to underworld figures muscling in on the illicit tobacco trade.

Victoria’s long-awaited ­tobacco licensing scheme is ­intended to be up and running towards the end of the year.

It will bring the state into line with the rest of the country. Until now, no licence has been required to sell tobacco in Victoria.

But Mr Erdogan, the minister responsible for tobacco regulation, said the conflict was the result of the federal government’s huge excise.

“It’s clearly led to the creation of this illegal market,” he said. Tobacco is an addiction and the illegal product is a lot cheaper.”

“The underlying cause (of the gangland conflict) will still be the price of the legal product. We’re seeing that across the nation; this is not unique to Victoria. In every other major city there a similar issues.

“There needs to be a national approach.”

MP Enver Erdogan called for a national approach to the violent underground tobacco market. Picture: Alison Wynd

Mr Erdogan said the tobacco licensing committee had dropped the proposed price of licences after a wave of critical feedback.

The cost of a licence to retail tobacco products could be less than $1100.

He said he he hoped details of the license could be revealed later in May.

“We’re working through that right now. We’ve had a lot of feedback, robust feedback, and I can understand the cost pressures that the retailers are facing in this area,” he said.

“That’s what a lot of the ­retailers were telling us (that it would be set too high).

“We’ve suggested fees of (the) low-to-mid $1000. We’ve had feedback and on the back of that, I’m confident that we’ll land in a position of fees lower than in New South Wales.”

The ongoing failure to properly regulate the cigarette sector has contributed to the ­130-plus firebombings in city suburbs and regional towns.

Businesses selling tobacco products without licences face big fines and individuals can be jailed for up to 15 years.

“It will mean tough new penalties, the toughest in the nation,” Mr Erdogan said. “Fifteen years of imprisonment is a big deterrent.”

Originally published as Labor MP claims tobacco wars are a result of federal govt’s smoke excise