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Category: Illicit Trade

  • Illicit Cigarettes Costing Pakistan $1.1B Annually

    Illicit Cigarettes Costing Pakistan $1.1B Annually

    Tax evasion, weak enforcement of the track-and-trace system, and regulatory loopholes are crippling both public revenue and health safeguards, costing Pakistan over Rs300 billion ($1.1 billion) annually to the illicit cigarette trade, experts said. Speaking on “The Express Tribune Podcast,” in collaboration with #BehtareenPakistan, CEO of the Institute for Public Opinion Research (IPOR), Tariq Junaid, said, “This is not just a health issue—it’s an economic crisis. When more than 40% of the cigarette market goes untaxed, the state loses the ability to fund vital services. Smugglers are filling the gap while legitimate businesses suffer.”

    Panelists on the podcast said illegal cigarette manufacturers are exploiting the system by avoiding the Federal Excise Duty and producing below the legal price threshold. These untaxed products are then sold cheaply, undercutting lawful manufacturers and contributing to a shadow economy that thrives on regulatory inaction. The podcast also explored the broader impacts of the illicit trade. Experts emphasized that this is not simply a revenue issue, it also has dire implications for public health. Consumers of illegal cigarettes are often exposed to unregulated, potentially more harmful products.

    In response to these challenges, the panel advocated for the urgent implementation of a fully functional track-and-trace system to digitally monitor cigarette production and distribution. They also called for tougher penalties for violators and more transparent oversight by tax authorities.

    “There needs to be a serious political will to act,” Junaid said. “The solution is not just about enforcement—it’s about protecting Pakistan’s economy from systemic exploitation.”

  • Philippines Files Tax Evasion Case Against Vape Brands 

    Philippines Files Tax Evasion Case Against Vape Brands 

    The Philippines Bureau of Internal Revenue (BIR) filed tax evasion complaints against several vape brands due to alleged evasion of over P8.7 billion ($157 million) in taxes. The complaint was filed by BIR Commissioner Romero Lumagui Jr. before the Department of Justice on Tuesday (April 29), against vape firms carrying the brand names Flava, Denkat, and Flare.

    “It was confirmed that the excise [taxes] on these products were not paid. All of them are illicit,” Lumagui said. “This is what happens when you keep violating our tax laws. We are continuing our monitoring of the vape industry, so you can expect that this will not be the last time we file a case.”

    He also said that with the continued proliferation of illicit vape products in the market, the government’s total loss is probably billions more. The BIR said that it seized 560,000 units of vape products in 2024, representing P415 million ($7.5 million) in unpaid taxes. 

    In addition to tax evasion, the charges filed also include the illegal possession of vape products without the required excise tax under Section 263 of the National Internal Revenue Code, as well as failure to submit excise tax returns. 

  • Philippines Customs Seizes $1.5M in Illicit Cigarettes  

    Philippines Customs Seizes $1.5M in Illicit Cigarettes  

    Authorities in Bocaue, Bulacan, Philippines, seized six truckloads with 717 boxes of assorted branded cigarettes in a warehouse last week, worth P83.7 million ($1.5 million). Philip Morris Philippines Manufacturing and Japan Tobacco International both cited the Bureau of Customs’ “dedication and effectiveness” as well as the leadership of Customs Commissioner Bienvenido Rubio. 

    Owners of the warehouse will be charged for violating the Tax Reform for Acceleration and Inclusion Law if they fail to present documents within 15 days, Rubio said. Charges could also be filed against the owners of the smuggled dried tobacco products for violating the Anti-Agricultural Economic Sabotage Act. 

  • Maldives’ Customs Seize 13.6M Cigarettes as Illicit Market Thrives

    Maldives’ Customs Seize 13.6M Cigarettes as Illicit Market Thrives

    Custom officials in the Maldives seized 13.6 million cigarettes at a sea cargo terminal worth MVR 122 million ($7.9 million), officials said. Inspectors found 1,360 cases of cigarettes in two 40-foot containers.

    Under the law, cigarettes must be imported with a warning message label and under a special permit, but these cigarettes lacked both. Customs did not disclose the name of the company attempting to import them.

    Officials believe the illicit cigarette market in the country is thriving. Following a doubling in import duty in the Maldives, reports said detections of Manchesters, a popular smuggled brand in the region, are being made and tax revenues have plunged suddenly.

    “High taxes and revenue losses are also encouraged by international agencies in some countries, though analysts say high taxes and economic controls of all kinds encourage disrespect for the law and corruption,” Economy Next wrote, claiming duties from cigarette imports in Maldives dropped from MVR 100 million ($6.5 million) to MVR 5 million ($325,000). “There have been some anecdotes suggesting that Maldives imports are smuggled to third countries, like Sri Lanka, through what some euphemistically call the ‘muhuda meda market’ (the market in the middle of the sea).”

  • Australian State Ups Penalties for Illicit Tobacco 

    Australian State Ups Penalties for Illicit Tobacco 

    Australia’s New South Wales government has introduced major reforms that are expected to be phased in by July 1 to combat illicit tobacco sales. They include a new licensing scheme for retailers and significantly increased penalties for offenders. NSW is following the lead of Queensland, which recently enacted similar measures.

    Under NSW’s new laws, businesses will need to obtain a tobacco retailing license or face fines of up to A$220,000 ($140,000) for corporations and A$44,000 ($28,000) for individuals. Retailers with a current Retailer Identification Number (RIN) will receive information on how to apply for a license. 

    Heavier penalties are now in effect for offenses such as selling single cigarettes or in packs of less than 20, tobacco products without health warnings, or using prohibited packaging. Corporations caught committing these offenses face fines of up to A$770,000 ($493,000), while individuals can be fined A$154,000 ($98,600). 

    The new laws have also strengthened penalties for both individuals and corporations caught selling tobacco products to minors. Individuals can be fined up to A$22,000 ($14,000) for their first offense and A$110,000 ($70,400) for subsequent offenses, while corporations face fines of up to A$110,000 for a first offense and A$220,000 for further offenses.

  • Thailand Police Bust $58K Per Day Vape Ring

    Thailand Police Bust $58K Per Day Vape Ring

    Police in Thailand arrested three Chinese suspects, two men and a woman, in a sting operation in Pattaya and seized vape pens and zombie-vape liquid from the suspects, who allegedly admitted to sales worth 2 million baht ($58,000) a day. They were charged with the illegal sale of e-cigarettes and vaping liquid and with selling contraband goods.

    Police Major General Patanasak Bupphasawan said the suspects admitted daily sales of about 1,000 e-cigarettes to tourists and young people. The arresting team also seized about 100 grams of powdered etomidate anesthetic, e-cigarettes, and equipment for mixing the anesthetic and e-liquid to make zombie-vape fluid. The seized products were worth about 513,590 baht ($15,000).

  • House Reps Calling for Crackdown on Illicit Chinese E-Cigs

    House Reps Calling for Crackdown on Illicit Chinese E-Cigs

    Three U.S. representatives are calling on the Trump administration to crack down on the sale of illegal vape products.

    According to CSP Daily News, U.S. Reps. Dusty Johnson (R-South Dakota), Select Committee on China Chairman John Moolenaar (R-Michigan) and Ranking Member Raja Krishnamoorthi (D-Illinois) sent a letter to Department of Homeland Security Secretary Kristi Noem, Attorney General Pam Bondi and Food and Drug Administration Acting Commissioner Sara Brenner urging the Trump Administration to take action on the influx of unauthorized Chinese-made e-cigarettes and vapes sold in America.

    “The large-scale smuggling of these illicit vaping products —accounting for more than half of all vapes sold in the United States—undermines American public health priorities and contributes to a significant increase in youth vaping,” the letter said. “The Chinese Communist Party is fueling this crisis. The CCP has banned the sale of flavored e-cigarettes within its own borders yet continues to export these same products worldwide. If these products are deemed unsafe for their own citizens, we must question their efforts to smuggle and sell these products in the United States.”

    In June 2024, the U.S. Department of Justice (DOJ) and the FDA created a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes. The congressmen said in the letter that this task force was an “important” step forward, but more must be done.

    “It is time to go even further and utilize all enforcement tools at our disposal,” the letter said. “Seizing these products is also an essential step, which currently occurs far too infrequently.”

  • Nearly $250K in Illegal Nicotine Products Seized in U.K.

    Nearly $250K in Illegal Nicotine Products Seized in U.K.

    Thousands of illegal nicotine products were seized in South West, England, last week as Trading Standards South West (TSSW) and police officers raided 50 locations over five days across the region. Part of Operation CeCe, officials seized 127,371 cigarettes, 65.94kg (2,326 oz) of hand-rolling tobacco, 4,490 vapes, and 2.5kg (88 oz) of shisha, all illegal, with a total value of £186,000 ($241,800).

    “Members of [the] public need to be aware of [the] serious criminal association that these products have to criminal gangs,” said Ben Hayes, the regional illegal tobacco and vape lead at TSSW. “I urge anyone with concerns about sales of illegal tobacco and vaping products, including their underage sales, to report them to Trading Standards South West.”

  • Copenhagen Inspections Reveal Widespread Sale of Illicit Products

    Copenhagen Inspections Reveal Widespread Sale of Illicit Products

    Authorities in Denmark said they found illegal tobacco, nicotine, and vape items for sale in 21 out of 22 convenience stores in Copenhagen during a recent round of inspections (called “control visits”) with items reportedly hidden behind paneling, among parcels, behind shelves, and in used chocolate boxes. The products found during the raids are banned because they do not comply with Danish sales laws or because duty had not been paid on them, the Health Ministry said.

    “It makes me angry that so many convenience stores are breaking the law and selling illegal nicotine products. It’s completely unacceptable,” Health Minister Sophie Løhde said. “They are gambling with the health of children and young people when they sell illegal vapes or e-cigarettes that taste like candy but are filled with high amounts of nicotine and can also contain narcotic substances. This has to be stopped.”

    Eighteen of the violators have been fined by at least one authority, while two stores were banned from selling food, according to the ministry.

    “The large-scale operation by authorities in Copenhagen kiosks has revealed massive problems and rule-breaking,” Tax Minister Rasmus Stoklund said. “This is completely unfair on the rest of us. It must be stopped, and we need to crack down hard on people who break the rules.” 

  • Meeting Held to Tackle Illicit Cigarettes in Western Balkans

    Meeting Held to Tackle Illicit Cigarettes in Western Balkans

    A high-level meeting to discuss measures to combat the illicit trade of tobacco products in the Western Balkans was held in Montenegro this week, where multiple institutional representatives highlighted the severity of the problem that negatively impacts public health, public finances, and regional security. The meeting was hosted by the Ministry of Finance of Montenegro in cooperation with the Secretariat of the WHO Framework Convention on Tobacco Control (the Convention Secretariat), and the WHO Regional Office for Europe.

    Novica Vuković, the Minister of Finance of Montenegro, said coordination among Balkan countries is key to effectively resolving the issue and called for strengthening joint action and information exchange between states. He stressed that eliminating the illicit tobacco trade is not an option but a priority. “Illicit tobacco trade is a global problem, and its impact particularly affects the countries of the Western Balkans,” he said. “Although the situation is serious, I believe that through joint efforts, we will be able to take concrete measures to reduce this harmful practice.”

    The Prime Minister of Montenegro, Milojko Spajić, emphasized that customs officers had seized millions of dollars of illegal cigarettes, preventing their further smuggling. He added that recent actions by the Special State Prosecutor’s Office and the Special Police Department had resulted in the arrest of numerous members of organized crime groups.

    The Ambassador of the EU to Montenegro, Johann Sattler, said, “There is an urgent need for a strong and coordinated approach to tackling illicit tobacco trade, which will improve public health, protect state revenues, and enhance the fight against organized crime. The EU remains committed to supporting Montenegro in this effort. I urge Montenegrin institutions to seize this opportunity, take decisive steps, and demonstrate their commitment to upholding the rule of law, including the destruction of illegal tobacco products seized in 2022.”