Named: Toowoomba businesses openly selling illegal tobacco

Illegal tobacco has flooded Toowoomba and the Darling Downs with stores openly selling chop chop to anyone who asks. The Chronicle has been secretly filming their illicit trade and can reveal just how wide spread it is.

The illegal tobacco industry is thriving in Toowoomba, with an investigation by The Chronicle revealing the black market is being propped up by an extensive network of businesses across the city.

Large quantities of loose-leaf tobacco in unmarked clipseal bags – commonly known as chop chop – as well as cartons of Chinese cigarettes, are being sold under the counter at several businesses across Toowoomba and the Darling Downs.

Grocery store in Ruthven St sells illegal tobacco.

An investigation throughout the past month, all captured on a hidden camera, shows shopkeepers handing over illegal products in unmarked packaging with little hesitation.

The illegal tobacco is sold tax-free and at a significantly reduced rate – at times as low as $15 for 50 grams, a fraction of the recommended retail price of $95 for a 40 gram packet of Winfield Blue loose leaf tobacco.

The illegal operations are in almost plain view, with one of the stores just a few hundred metres from the Darling Downs Police District Office.

Ruj Shop grocery store in Margaret St is only a few hundred metres from the Toowoomba Police station but its is openly selling illegal tobacco.

The Toowoomba stores revealed in the Chronicle investigation to be selling chop chop are Zer Foodstore at the Northlands Shopping Centre, Ruj Shop on Margaret Street, Tell Banat Deli Grocery and Take Away on Ruthven Street and Tariq Foodstuff Store on Bridge Street.

There is also the Stop and See Giftshop and Tobacco store at Pittsworth.

Another Toowoomba store also sold chop chop in counterfeit packaging and remarked that it was “packed fresh daily”.

The Grocery store in Bridge St, opposite the Gowrie Road Hotel sells illegal tobacco.

Some shop owners were keen to offer discounts and talk up the freshness of their products.

The Chronicle understands at least one of the stores was the subject of a combined Australian Taxation Office and Queensland Police Service raid in the past two months but has resumed openly selling chop chop.

Josh Fett, British American Tobacco’s head of corporate and government affairs said the company was aware of at least seven stores selling illegal tobacco in Toowoomba.

He called on the Queensland Government to strengthen the police powers around the sale of illegal tobacco to help combat the underground trade.

“When you can buy a packet of cigarettes for $5 in China and sell it in Toowoomba for $20, it’s not hard to see why organised criminals have gotten into illegal tobacco in a big way,” he said.

“British American Tobacco is aware of numerous stores in Toowoomba selling illegal tobacco.

“Despite regular reports of this crime across the country, it continues to boom in Queensland.”

One step would be to bring in a licensing regime, similar to what is in place for alcohol.

“Unfortunately, there is a lack of clarity for who is even responsible for shutting down stores selling illegal tobacco,” Mr Fett said.

“With no one taking the lead, it’s open slather for these criminals to continue trading.”

The Chronicle filmed staff at Zer Food Store at Northlands Shopping Centre selling illegal tobacco.

Anyone convicted of growing tobacco illegally faces up to 10 years in jail.

Mr Fett said these low price points created unfair competition and also robbed the state of tax revenue that would otherwise fund roads, schools and health care.

The current enforcement action is directed at the interstate and international borders where police, Border Force and ATO officers routinely seize large amounts of illicit tobacco.

On August 26, police seized an estimated $600,000 worth of illegal tobacco at the Coolangatta border crossing that was stashed in the back of a semi-trailer.

Thousands of dollars worth of illegal tobacco is being sold in Toowoomba each week.

However, Mr Fett said it should be complemented with increased Queensland police powers.

“The Australian Border Force can’t stop everything at the border, it’s just not physically possible to search every container or mail parcel that comes in,” he said.

“So, we need to give state police the right powers to step into this space and disrupt the retail level trade.

“Large on-the-spot fines would be a good place to start, (it has) immediate impact and it hits the criminals where it hurts, their bottom line.”

ATO, Border Force, Police raids seize millions

■ Australian Taxation Office investigators conducted nine operations in the 2020-2021 financial year, seizing illicit tobacco with a taxable value of $178 million.

■ March 2021: ATO officers raid farms along the New South Wales-Victorian border and seize 400 tonnes of illegal tobacco plants: Estimated value: $84.3 million

■ May, 2021: Darling Downs police and ATO officers raid a farm at Linthorpe, west of Toowoomba and seize 25 tonnes of illegal tobacco. Estimated value: $40 million

■ June 2021: Logan Police execute 12 raids and uncover 4.5 tonnes of tobacco, $900,000 in cash, 114,732 packets of cigarettes and 150,000 vapes containing nicotine. Estimated value: $10.42 million

■ July 2021: ABF discovers a single shipment in Melbourne of more than 2.8 million cigarettes which had been the subject of a smuggling attempt. Estimated value: $4 million.

■ August 2021: Police intercepted a New South Wales registered semi-trailer at the Queensland – New South Wales border and find counterfeit cigarette and loose leaf chop chop. Estimated value: $600,000.

■ August 2021: The Australian Border Force busts a shipment at the New South Wales container examination facility of more than 9.5 million illicit cigarettes which was being smuggled into the state. Estimated value: $11 million.