Tobacconist, newsagents, corner stores united in calls for action

Toowoomba is awash with chop chop tobacco that sells for a fraction of the price of the legal alternative. It’s a price point that retailers cannot compete with and it’s driving them out of business.

Retailers are united in their calls for the Australian Taxation Office and the Queensland Police to crack down on black market tobacco sales with millions lost in taxes going back to the community.

The Chronicle spoke to several legitimate tobacconists in Toowoomba who said their sales had dropped by as much as 50 per cent since February – blaming the rise in illegal tobacco – chop chop – sales across the Garden City.

The owner of one store – who wished to remain anonymous out of fear of reprisals – said he got up to 25 inquiries every day from customers openly asking if he sold chop chop – which is a fraction of the price of legitimate tobacco.

“Customers are going to the illegal tobacco because it is a lot cheaper,” he said.

“The only way we can get these customers back is if we get Border Force, the ATO or the police to shut these guys down.”

The owner has made several complaints to the authorities but said they fell on deaf ears.

“Nothing changes,” he said.

MORE CONTENT: Named: Toowoomba businesses openly selling illegal tobacco

The Australian Association of Convenience Stores, the Master Grocers Association and the Australian Lottery and Newsagents Association have all called for ATO to step up.

In a joint statement, AACS chief executive Theo Foukkare, MGA chief executive Jos de Bruin, and ALNA chief executive Ben Kearney said their members were losing hundreds of millions of dollars to black market tobacco sales.

“The Federal Government has been working hard to stop illicit tobacco at the border, but if the penalties for this type of criminal activity at a retail level fail to provide a sufficient deterrent, the market will continue to thrive,” they said.

This week a man in Shepparton, Victoria, pleaded guilty to reckless possession of imported tobacco products and possessing a prohibited weapon, among other charges.

In the investigation, police searches uncovered 18.625g of illegal loose tobacco, 100 boxes of 100 cigarettes, and 171 cartons of 200 cigarettes with an evaded excise value of almost $80,000.

MORE CONTENT:Leading GP worries cheap illegal smoke will led to poorer health in the regions

The man told police he was paid $300 a week to pick up consignments of tobacco and deliver them to a range of stores. He was fined just $1000 for the tobacco possession.

“This case is another in a long line of examples that shows the law has not kept pace with criminal activity when it comes to illicit tobacco,” the CEOs said.

“We call on state governments to ensure the penalties for this type of activity are increased to become a credible deterrent for criminals.”

An ATO spokeswoman said the office estimated it lost about $822 million in the 2018–19 financial year to black market tobacco sales.

“Tobacco growing operations are not run by small producers of farmers, they are run by organised crime syndicates who deliberately engage in illegal activities,” she said.

“The ATO is primarily focused on targeting the source of illicit tobacco supply.

“By removing illicit tobacco crops it denies retailers the opportunity to sell to end consumers.

If you suspect illicit tobacco is sold nearby, phone [phone].