Tag: black market

  • Tasmania Intensifies Crackdown on Illicit Tobacco

    Tasmania Intensifies Crackdown on Illicit Tobacco

    Government officials in Tasmania said they are ramping up enforcement against illicit tobacco and vaping products, with authorities seizing goods worth more than A$6.8 million ($4.9 million) since July 2025 and issuing 159 infringement notices. Recent actions include a major Devonport bust where police confiscated illicit tobacco valued at A$390,000 ($281,000), part of broader efforts that have also removed millions of cigarettes, large volumes of loose tobacco, and tens of thousands of e-cigarettes from the market.

    The crackdown is set to be reinforced by new legislation, with the Public Health Amendment Bill 2026 introducing tougher penalties, new offences, and powers to shut down businesses involved in illegal trade. Officials say the measures aim to disrupt organized supply chains, reduce smoking rates, and limit youth access to unregulated nicotine products.

  • Tasmanian Retailers Demand Tobacco Tax Overhaul

    Tasmanian Retailers Demand Tobacco Tax Overhaul

    Tasmania’s independent retailers are calling on the Australian government to overhaul its tobacco excise strategy, warning that the black market has spiraled “beyond control.” Tasmania Independent Retailers (TIR), representing 80 IGA and IGA-branded stores, said illicit cigarettes are being sold for as little as A$10 per pack ($7), compared with A$40–50 ($28–35) for legal products, fueling organized crime and undercutting legitimate retailers.

    TIR chair Michael Baxter criticized the government for persisting with high excise rates and heavy enforcement spending while failing to curb illegal sales, citing unregulated menthol products and weak age checks as risks to youth. Federal excise revenue has dropped from over A$16 billion ($11.2 billion) in 2019 to about A$7.4 billion ($5.2 billion) currently, and 2025 research by FTI Consulting estimates that illicit tobacco now accounts for roughly half of all cigarettes consumed in Australia. Baxter called for recalibrated excise settings and more targeted enforcement, labeling current policy “a disaster” that has left the government effectively losing control of the market.

  • Retailers Push New Welsh Govt. to Focus on Illicit Crime

    Retailers Push New Welsh Govt. to Focus on Illicit Crime

    Members of the Federation of Independent Retailers (the Fed) are urging the next Welsh government, due to be formed after the May election, to introduce a £6,500 grant to help independent retailers install modern CCTV systems to tackle rising retail crime. The organization argues that better enforcement would help curb the sale of illicit tobacco and vapes, protect legitimate retailers, and disrupt organized crime networks linked to the black market.

    The call mirrors a similar request the Fed made recently to the Scottish government and forms part of three manifesto proposals submitted to Welsh political parties ahead of the vote. The Fed is also seeking the creation and funding of a dedicated Retail Crime Taskforce in Wales, modeled on Scotland’s, alongside ring-fenced funding for trading standards officers to crack down on rogue trading.

    Fed Welsh president Clive Birkby said the organization wants small independent shops placed “at the heart” of the next government’s agenda, with urgent action on retail crime, business rates, and the fair rollout of Wales’ deposit return scheme.

  • Nicotine Prohibition ‘Profoundly Immoral,’ Andrews Says in GTNF Closing

    Nicotine Prohibition ‘Profoundly Immoral,’ Andrews Says in GTNF Closing

    In a forceful closing keynote at the Global Tobacco & Nicotine Forum (GTNF), Tim Andrews, Director of Consumer Issues at Americans for Tax Reform and the Tholos Foundation, called global bans on vaping and other reduced-risk nicotine products “profoundly immoral,” arguing that prohibition is fueling crime, costing governments billions, and depriving smokers of lifesaving alternatives.

    “What we have is the greatest medical breakthrough since penicillin,” Andrews said. “It has the potential to save millions of lives—and yet, these products are being made illegal.”

    Andrews described his frustration in engaging with policymakers. “I’ve talked to so many politicians. I present the science, the evidence—and the next day, they go and vote against it,” he said. “But when you start talking about the cost to their state budgets, that’s when they start listening.”

    Citing examples from around the world, Andrews said prohibition consistently drives consumers to illicit markets. “In Brazil, e-cigarettes were banned in 2009. Adult smoking rates have gone up. When legal products don’t exist, people either go to the black market or go back to smoking cigarettes,” he explained. “In Germany, 1.4 million people use despite a ban. In Mexico, usage has increased by 400%. Prohibition doesn’t work—it never has.”

    He argued that criminal organizations have been the biggest beneficiaries of restrictive nicotine policies. “Cartels have been enriched by prohibition,” he said. “We speak often about the human cost of lives lost to smoking, but now we’re seeing people murdered, and money flowing to sex traffickers and drug cartels. That’s the true cost of bad policy.”

    Andrews highlighted new research from a coalition of think tanks showing the economic toll of nicotine bans, including lost tax revenue and enforcement costs. “We launched a campaign with a dozen think tanks around the world,” he said. “Our evidence-based report on the costs of prohibition—on lost revenue and the growth of criminal gangs—has already been downloaded by 50,000 people in Germany alone. When we say prohibition doesn’t work, it’s a fact.”

    The data, Andrews said, also show that “about 80% of people say they will go to the black market or return to smoking if safer alternatives are banned—and that’s probably a low estimate.”

    Describing Australia’s recent crackdown as “profoundly immoral,” he said, “It breaks my heart that we are ground zero. But once you start taking what politicians care about—the bottom dollar—they start listening.”

    Andrews closed with a call to action: “Hundreds of millions of lives can be saved if we get this policy straight. We owe it to future generations. If we can’t convince politicians to do what’s right for human lives, then we must convince them with the economic reality. Either way, prohibition must end.”

  • Health Minister: Tobacco Black Market ‘Thriving’ Across Australia

    Health Minister: Tobacco Black Market ‘Thriving’ Across Australia

    Australia’s illicit tobacco trade has spiraled out of control, Health Minister Mark Butler warned, describing it as the country’s biggest threat to public health. He said organized crime has seized control of the multi-billion-dollar market, with violence, arson, and gang turf wars now common, and that the illegal trade also bankrolls other criminal activity, including drug and sex trafficking.

    The surge comes amid a decade of steep cigarette tax increases, which pushed the duty on a pack from A$10.62 in 2015 to A$28 ($7.01 to $18.48) today. While intended to reduce smoking, the policy has backfired according to officials: federal excise revenue has fallen, and the Australian Medical Association warns that smoking rates may be creeping up again. Experts say the black market now dwarfs legitimate sales, leaving policymakers struggling to strike a balance between public health and crime prevention.

    Butler said enforcement, rather than tax policy, is the real challenge, pointing out that criminal gangs can produce cigarettes for a fraction of the legal price, leaving Australia caught between soaring taxes and a thriving underground market. State leaders and opposition politicians are calling for urgent action. NSW Premier Chris Minns described repeated tax hikes as “feeding the illicit tobacco market,” while Shadow Health Minister Anne Ruston accused the federal government of weak leadership.

    “It is his government who has sat on its hands and allowed the black market to thrive due to their inaction and weak leadership,” Ruston said. “It is a clear indictment on the health minister, and his government, that it has taken this long for them to realize the extent of the problem.”

  • Australia: Legal Cigarettes Plunge, Black Market Thrives

    Australia: Legal Cigarettes Plunge, Black Market Thrives

    Legal cigarette sales in Australia have dropped 22% in the past year, according to data published yesterday (September 3) from the Australian Bureau of Statistics; however, industry experts point out that not having the overall smoking rate mirror that number exposes the growing dominance of the black market and the challenges it poses for enforcement and government revenues. The Treasury expects tobacco excise collections to fall to A$7.1 billion ($4.6 billion) this year, down 57% from the 2019–20 peak of A$16.3 billion ($10.6 billion), despite years of sharp tax hikes.

    Excise increases of more than 280% since 2013 have lifted the price of a 25-pack to around A$50 ($32.50), driving many smokers toward illicit alternatives costing less than half as much. The Australian Border Force estimates organized crime controls 75% of the trade, smuggling in the equivalent of A$3 billion ($2 billion) in untaxed tobacco last year alone. More than 120 Victorian outlets have been fire-bombed since 2023 in gang turf wars.

    While smoking rates have nearly halved since 2010, health groups warn progress has slowed, even as public finances are squeezed.

  • Hong Kong Seizes $26.6 Million in Illegal Cigs

    Hong Kong Seizes $26.6 Million in Illegal Cigs

    Credit: Timothy Donahue

    Customs officers in Hong Kong seized illegal cigarettes worth more than HK$208 million ($26.6 million) in the first 15 days after a tobacco tax increase came into force as part of last month’s budget.

    Superintendent Jeff Lau Leung-chi of the Customs Revenue Crimes Investigation Bureau said on Monday that if the tobacco had been legally imported, the contraband products would have generated about HK$147 million in tax.

    Lau attributed the increase in cigarette seizures to enhanced enforcement action at all levels to combat the trade in illegal tobacco products and the operation’s longer duration in the second phase, according to media reports.

    “We also believe that crime syndicates anticipated the possibility of an increase in tobacco tax, so they stockpiled a larger quantity of illicit cigarettes ahead of time to supply the market after the tax hike,” he said.

    The untaxed cigarettes were discovered over the second phase of a citywide operation code-named “Tempest”, which involved the arrest of 776 people between February 29 and March 14.

    During the first round of the operation, which took place between February 19 and 28, Customs detained 538 people and seized HK$62 million worth of illegal tobacco products in 10 days.

  • U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, according to the Local Government Association (LGA).

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. However, a minority could see the fine as a price worth paying to continue selling the products, it said.

    “We’re delighted that the government is taking decisive action to ban disposable vapes,” Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said, according to media reports. “However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    Firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, the Local Government Association (LGA) has said.

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. A minority could see the fine as a price worth paying to continue to sell the products, it said.

    Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said: “We’re delighted that the government is taking decisive action to ban disposable vapes. However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    According to LGA analysis, councils can impose larger penalties for other offenses, including up to £500 for littering, £500 for excessive noise from licensed premises, £200 for a business failing to put up “no smoking” signs, and up to £150 for unauthorized distribution of free leaflets on public land.

    The LGA, representing councils in England and Wales, calls for the government to amend the tobacco and vaping bill to allow councils to impose more severe fines.

  • Hong Kong Seizures Hit $288 Million in 2023

    Hong Kong Seizures Hit $288 Million in 2023

    Credit: Alven 0920

    Customs officers in Hong Kong reported that the agency had impounded more than 650 million black market cigarettes worth HK$2.25 billion ($287.8 million) last year, the largest annual cash value in more than two decades, according to media reports.

    The seized cigarettes would have generated about HK$1.54 billion in tax revenue, also a record, over the same period, according to an undisclosed source.

    Last week, authorities in Hong Kong said they were considering a further increase in tobacco duty.

    Last year’s total number of cigarettes seized was lower than the 732 million impounded in 2022, although the value was higher. Last year’s record seizure coincided with a 31 percent tobacco tax increase in February, which raised the average cost of a pack of 20 cigarettes by HK$12 to more than HK$70.

    A pack on the black market costs HK$18 to HK$38.

    The source said the confiscated tobacco products were stored in government warehouses currently, pending court proceedings or further investigations before being destroyed and buried at landfill sites.

    He added customs officials would boost efforts to combat crime syndicates that tried to take advantage of busy logistics services in the run-up to the Lunar New Year to smuggle cigarettes into the city.

  • Australian Gangs Torching Tobacco Shops

    Australian Gangs Torching Tobacco Shops

    Tobacco Reporter Archive

    Police in the Australian state of Victoria have arrested five individuals believed to be connected to the Finks outlaw motorcycle gang and a series of arson attacks on tobacco stores in Victoria.

    The arrests are a police response to the so-called tobacco wars, which have seen criminal gangs fight for control of the “significant source of income” generated by the sale of illicit tobacco.

    Victoria police Det. Insp. Graham Banks acknowledged community concern about the attacks in recent weeks and said the force was “turning the corner” with new intelligence, according to media reports.

    The arrests are related to the torching of four tobacco stores and a cafe between Christmas Day and Friday in Moe, Croydon, Altona, Altona North and Sunshine.

    On each occasion, police allege the offenders broke into the stores before setting them ablaze.

    Police report they found five vehicles believed to have been stolen when arresting the group, along with Molotov cocktails.

    “We believe they were preparing to do further attacks, so this is a substantial series of arrests,” Banks said. “This certainly impacts a syndicate that is driving this.

    “There is still a significant conflict between multiple different groups over control of a significant source of income. It will be an ongoing issue for several months, but we’re certainly turning the corner.”