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Tag: illicit

  • ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    A policy brief by the Center for Market Education (CME) warns that Southeast Asian governments may lose more than $11 billion to illicit tobacco trade by 2028, averaging $3.7 billion annually.

    Key national losses include:

    • Malaysia: $770 million/year, nearly matching projected petrol subsidy savings.
    • Philippines: $440 million/year, exceeding its $370 million disaster preparedness fund.
    • Thailand: $560 million/year, with illicit products making up 28% of the market.
    • Indonesia: $5 billion lost across three years, with illicit trade above 10% of the market.

    CME notes these figures are conservative due to underreporting and uneven enforcement. CEO Dr. Carmelo Ferlito called for stronger cross-border collaboration, policy alignment, and transparency to reclaim lost revenue. Hayley van Loon, CEO of Crime Stoppers International, highlighted the link between illicit tobacco and organized crime, including narcotics, human trafficking, and counterfeit goods.

  • Illegal Tobacco Costs Australia Billions, Fuels Crime

    Illegal Tobacco Costs Australia Billions, Fuels Crime

    Australia’s illegal tobacco market has cost the government A$3.3 billion ($2.1 billion) in excise revenue, with organized crime controlling much of the trade, the Australian Criminal Intelligence Commission (ACIC) said in a report today (November 6). About one in five cigarettes sold is illicit, as high legal prices push consumers to cheaper alternatives, it said.

    The broader impact, including healthcare and productivity losses, totals A$4 billion ($2.6 billion) annually, with at least three deaths and 200 firebombings linked to “tobacco wars.” The ACIC said the A$4 billion estimate was “almost certainly an underestimate,” as it did not include e-cigarettes and illegal vapes.

    New South Wales Premier Chris Minns called for a federal review of excise rates, while Treasurer Jim Chalmers rejected lowering prices. Illicit tobacco is part of a growing A$82.3 billion ($53.5 billion) organized crime burden, alongside illegal vapes, according to the report.

  • Russia’s FSB Shuts Down Major Illegal Vape Supplier in Tula Region

    Russia’s FSB Shuts Down Major Illegal Vape Supplier in Tula Region

    Working in Russia’s Tula region, Federal Security Service (FSB) officers dismantled a large-scale operation in a warehouse containing counterfeit nicotine products worth over 500 million rubles ($6 million). Authorities said a 27-year-old resident organized the sale of unmarked electronic cigarettes, vapes, and liquids in violation of labeling laws. A criminal case has been opened against him for trafficking unmarked goods on a particularly large scale. The investigation continues to trace the supply network and distribution channels.

  • Philippines Busts Illegal Cigarette Factory, Rescues 11 Workers

    Philippines Busts Illegal Cigarette Factory, Rescues 11 Workers

    Authorities in the Philippines raided an alleged illegal cigarette factory in Trece Martires City, arresting two individuals and “rescuing” 11 workers, including a 17-year-old, the Philippine National Police (PNP) said. The operation targeted a facility operating out of a supposed leisure park. The suspects allegedly recruited workers from poor communities in the Visayas and Mindanao to produce counterfeit cigarettes under “questionable working conditions.”

    The rescued workers are reportedly being investigated for labor law violations, while the arrested individuals were taken to the police station for documentation. The PNP emphasized its commitment to dismantling trafficking networks and ensuring safe, dignified employment, in line with broader government efforts.

  • Indonesia Incentivizing Illegal Cigarette Makers to Go Legit

    Indonesia Incentivizing Illegal Cigarette Makers to Go Legit

    Indonesian Finance Minister Purbaya Yudhi Sadewa announced plans to implement a special tax aimed at curbing the circulation of illegal cigarettes, particularly from China and Vietnam, and supporting domestic legal producers. The policy will include the establishment of a Tobacco Industry Zone to encourage illegal domestic producers to legalize operations under certain tariffs, and potentially be operational by December 2025.

    Purbaya acknowledged that high cigarette taxes inadvertently fueled the black market, so that while tax revenue decreased, smoking prevalence—and the health problems associated with it—remained unchanged. 

    “If that’s the case, then what is the policy for?” said Purbaya. “We are killing the domestic legal cigarette industry, but reviving illegal cigarettes from abroad. In that case, I lose. I don’t want to lose.”

    The government will offer assistance to small illegal producers to help them enter the legal market while maintaining strict enforcement against those who continue illicit operations. Purbaya stressed that the approach balances enforcement with opportunities for legalization, ensuring domestic producers are protected while creating a more transparent and regulated cigarette market.

  • Australia Sees Record Surge in Illegal Tobacco and Vape Seizures

    Australia Sees Record Surge in Illegal Tobacco and Vape Seizures

    Australia’s border authorities have reported a sharp rise in the interception of illegal tobacco and vapes, with the Australian Border Force (ABF) seizing 586 million cigarettes and more than 3 million vapes between July and September, the highest quarterly total in recent years. Officials say the spike reflects both growing criminal activity and enhanced border intelligence.

    ABF Illicit Tobacco and Vape Enforcement Commander Greg Dowse said the results highlight how syndicates are becoming more sophisticated, but “not beyond the reach of border intelligence.” He credited the agency’s success to stronger cooperation with international partners, enabling authorities to identify high-risk shipments before arrival.

    Major seizures were reported nationwide, including two tons of undeclared tobacco in Queensland, over 4 million cigarettes in Western Australia, and 95,000 vapes hidden in a Port Botany shipment. Dowse said continued collaboration and intelligence sharing remain crucial to preventing illicit tobacco and vape products from reaching Australian consumers.

  • Philippine Tobacco Growers Call for Stronger Action Against Smuggling

    Philippine Tobacco Growers Call for Stronger Action Against Smuggling

    The Philippine Tobacco Growers Association (PTGA) urged its government to step up enforcement against illegal cigarette trade, warning that smuggling is siphoning income from farmers and threatening one of the country’s key agricultural sectors. PTGA President Saturnino Distor said each illegal product sold in the market represents lost revenue for hardworking Filipino tobacco farmers, totaling P1 billion ($17 million)—or P17,000 ($289) for each of the organization’s 59,000 members.

    Industry data indicates illegal cigarettes sell for as low as P2 ($0.03) per stick, compared to P7 ($0.12) for legal products, fueling black-market growth and increasing accessibility to minors. This year, around 11.8 billion sticks of illegal cigarettes are expected to be sold in the Philippines, representing roughly 9.4 million kilos of tobacco that could have been sourced from local farms. At an average farmgate price of P104.09 ($1.77) per kilo, farmers have already lost P978.4 million ($16.6 million) in income.

    Distor also highlighted the broader impact on the industry, affecting transport workers, factory employees, and small retailers, while the government loses an estimated P40 billion ($680 million) in excise tax revenue annually. Despite the 2024 Anti-Agricultural Economic Sabotage Law, enforcement remains weak. “Farmers are not asking for special treatment,” Distor said. “We are asking for protection, for fairness, and for a chance to keep farming and feeding our families.”

  • Australia Launches National Taskforce to Combat Illicit Tobacco Crisis

    Australia Launches National Taskforce to Combat Illicit Tobacco Crisis

    With Australia’s demand for black-market tobacco surging in recent years, driven by steep tax hikes on legal products, authorities have announced a new multi-agency taskforce set to target the organized criminal networks behind it. The Illicit Tobacco National Disruption Group, led by the Australian Border Force, will unite federal, state and territory police with agencies including AUSTRAC, the Australian Criminal Intelligence Commission, the ATO, and Services Australia.

    Backed by almost A$190 million ($124 million) in new funding aimed at dismantling smuggling and distribution operations, the crackdown will examine every stage of the supply chain, from pre-border smuggling to warehouse storage and local street sales. The taskforce will focus on mid-level criminals who import, distribute, or sell illegal tobacco, while also targeting financial flows that sustain the trade. Home Affairs Minister Tony Burke said the coordinated approach was vital as illicit tobacco networks were increasingly tied to broader organized crime.

    “The same criminal groups are involved in organized tobacco, arson and the drug trade,” Burke told the ABC’s Insiders program. “If there’s a cohesion of threats and a convergence of threats, there needs to be a convergence of protection in responding.”

  • Singapore Busts Major Vape Smuggling Syndicate Linked to Malaysia

    Singapore Busts Major Vape Smuggling Syndicate Linked to Malaysia

    Singapore authorities announced the dismantling of a large-scale vape smuggling syndicate operating between Malaysia and Singapore, arresting 12 suspects and seizing over 64,000 vaping devices worth nearly RM2 million ($460,000). The suspects—11 men and one woman aged 25 to 35—were detained on October 16 during a joint operation led by the Singapore Police Force with support from the Criminal Investigation Department, Police Intelligence Department, and Special Operations Command.

    Police said the syndicate was responsible for importing and distributing vapes to local buyers. The arrests took place at a car park where the group was allegedly distributing devices. Follow-up raids uncovered two storage facilities containing the illegal goods, alongside cash, multiple mobile devices, and eight vehicles used in the smuggling operation.

    All 12 suspects were charged in court for offenses under Singapore’s Tobacco (Control of Advertisements and Sale) Act 1993, which prohibits the import, sale, and distribution of vapes. Four face conspiracy charges, while eight are charged with possession for sale. Offenders can be fined up to S$10,000 ($2,300) or jailed for six months for a first offense, with harsher penalties for repeat violations.

  • Ukraine’s Illegal E-Cigarette Market Costs $180M in Taxes

    Ukraine’s Illegal E-Cigarette Market Costs $180M in Taxes

    Ukraine’s e-cigarette market is almost entirely illegal, with the shadow market accounting for 93% of consumption, according to Mykola Pasichnyi, professor at the Kyiv National University of Trade and Economics. About 40% of vaping liquids are smuggled, while 60% is counterfeit and locally produced, he said.

    The illicit trade causes the government to lose an estimated 7.5 billion UAH ($180 million) annually in taxes, including excise, VAT, and local levies. Pasichnyi warned that combating this requires stronger enforcement by customs, border guards, and tax authorities, along with dedicated funding.

    Despite the scale of the problem, Ukraine’s draft 2026 budget allocates only an additional 13,500 UAH ($324) for the Bureau of Economic Security and none for customs reform, raising concerns over government priorities. Experts say urgent action is needed to regulate the market, recapture lost revenue, and curb the illegal trade.