Illegal tobacco costing Australian government $1.61bn, report reveals
ILLEGAL tobacco is now costing the Australian government $1.61 billion in lost taxes, a report to be published today will reveal.
Law & Order
Don't miss out on the headlines from Law & Order. Followed categories will be added to My News.
ILLEGAL tobacco is now costing the Australian government $1.61 billion in lost taxes, a report to be published today will reveal.
The Illicit Tobacco in Australia 2016 report calls for a national strategy — similar to one in place in the UK — to tackle the issue.
The UK introduced a national strategy in 2000, and lost revenue dropped from $5.8 billion to $3.5 billion.
Today’s report, by KPMG, estimates 13.9 per cent of tobacco consumption in Australia is made up of illicit cigarettes and unbranded loose-leaf tobacco, known as chop chop.
It is estimated 2.3 million kilograms of illicit tobacco was consumed last year alone.
Nikitas Theophilopoulos, managing director of tobacco company Philip Morris, said the industry was urging both federal and state authorities to continue their efforts to combat organised crime in tobacco.
The Australian Border Force (ABF) and its Tobacco Strike Team seized 142 tonnes in the last six months of 2016, compared to 82 tonnes in the 12 months before.
AUSTRALIAN BORDER FORCE OFFICERS HIT ILLEGAL TOBACCO SYNDICATE IN DAWN RAID
Despite the huge amounts of black market products being consumed, the report found that as a percentage of total consumption, the illicit tobacco market declined by 0.2 points in 2016.
The fall followed record seizures of illicit tobacco by the ABF and other law enforcement authorities.
Most illegal cigarettes that come into Australia arrive from China and South Korea.
“A national anti-illicit tobacco strategy is needed to help co-ordinate industry and law enforcement efforts to ensure ongoing support for dealing with this serious criminal issue,” Mr Theophilopoulos said.
Chop chop continues to account for most (58 per cent) of total illicit consumption in Australia.
“Criminals are now smuggling cigarettes in plain packaging into the country to deceive authorities, and once they’re through the border, these illegal products are being sold to unsuspecting consumers,” Mr Theophilopoulos said.
“With a further four 12.5 per cent tobacco tax increases on the way, there has never been a more important time to stop these illegal products from entering the country.”
Last June the federal government announced the ABF Tobacco Strike Team would receive $7.7 million to combat criminal tobacco syndicates.