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Tag: illicit tobacco

  • Survey Says Pakistan’s Tobacco Control Not Working

    Survey Says Pakistan’s Tobacco Control Not Working

    A nationwide survey in Pakistan found widespread non-compliance in the cigarette market nearly four years after the introduction of the Track and Trace System. Conducted across 1,520 retail outlets in 19 districts, the study found that only 22 of the 477 identified brands in circulation were consistently compliant, with 455 failing to meet at least one regulatory requirement, including missing tax stamps, health warnings, or printed retail prices.

    The survey also found that 392 brands were being sold below the government’s minimum price of PKR 162.25 ($0.58) per pack, with some as low as PKR 50 ($0.18), indicating a significant presence of untaxed and non-compliant products. Both smuggled and locally produced duty-unpaid cigarettes were widely available, with higher non-compliance rates in rural areas. The findings point to ongoing challenges in enforcement, monitoring, and market control, despite the formal rollout of digital tracking systems.

  • Vietnam Eyes Illicit Market as it Introduces Mixed Tobacco Tax  

    Vietnam Eyes Illicit Market as it Introduces Mixed Tobacco Tax  

    Vietnam’s planned introduction of a mixed tobacco excise tax from 2027 is expected to combine a 75% ad valorem rate with a gradually increasing specific tax, adding 2,000 VND ($0.08) per pack annually and reaching 10,000 VND ($0.38) by 2031. The policy aims to reduce smoking rates, increase the tax share of retail prices to nearly 60%, and boost excise revenue, which is projected to more than double to 39.1 trillion VND ($1.5 billion) by 2030. However, officials and experts warn that higher taxes could widen price gaps and push some consumers toward illicit tobacco, which already accounts for an estimated 20–22% of the market and causes annual tax losses of up to 6 trillion VND ($228 million).

    Authorities say stronger enforcement will be critical to support the policy, including higher penalties for smuggling and retail violations, expanded oversight of e-commerce sales, and coordinated action among customs, police, and border forces. Recent enforcement efforts have resulted in over 23 million packs of illicit cigarettes seized and more than 1,600 violations recorded, though officials note that trafficking remains widespread and increasingly sophisticated across multiple regions.

  • JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    “Cost pressure means consumers often cannot afford to think about safety,” was the message from Joseph Anak Janting, president of Malaysia’s Dayak Transformation Association (TRADA). The comment came as officials examined the nation’s thriving illicit tobacco market, not just its financial impact, but also the unknown ingredients being ingested from unregulated products.

    Japan Tobacco International (JTI) Malaysia released data today (April 30) that shows 57% of the Malaysian tobacco market is illicit, a number that climbs near 80% in regions such as Sabah and Sarawak, where the market is driven by a significant price gap. Legal cigarettes cost over RM20 ($5) per pack compared to illicit products that sell for as little as RM4 to RM8 ($1 to $2), following recent excise tax increases and retail restrictions. In Sarawak, where the average monthly household income is RM5,504 ($1,376) and rural incomes are significantly lower, Janting said the price gap is not a minor consideration; it is the difference between affording cigarettes and not affording them.

    JTI identified three primary categories of illicit products: counterfeit tax-stamp cigarettes, which have doubled to 16% market share since 2023; smuggled “whites” lacking tax stamps; and illegally imported kretek cigarettes. Officials said expansion of the illicit trade is contributing to an estimated RM4 billion in annual lost tax revenue, with enforcement challenges compounded by cross-border smuggling and counterfeit production networks.

  • Cyprus Retailers Warn Tax Hikes Could Boost Illicit Tobacco Trade

    Cyprus Retailers Warn Tax Hikes Could Boost Illicit Tobacco Trade

    Kiosk owners in Cyprus are warning that proposed tobacco tax increases could drive consumers toward illegal markets, particularly via the island’s northern region, where price disparities already influence purchasing behavior. Industry estimates suggest that about 13% of cigarette consumption and 53% of rolling tobacco consumption currently comes from the north, with further increases expected if taxes rise.

    Retailers say planned EU-driven excise adjustments could push cigarette prices from around €4.50–€5 to as high as €8–€8.50 per pack, potentially accelerating the shift to untaxed products. The sector estimates illicit trade already costs the government more than €50 million annually and is calling for policy flexibility, stronger enforcement and phased implementation to mitigate further losses.

  • Bangladesh Battles with Illicit Tobacco, Enforcement

    Bangladesh Battles with Illicit Tobacco, Enforcement

    Authorities in Bangladesh are facing renewed scrutiny over the enforcement of tobacco-related regulations, as a legal petition seeks updates on action taken against illegal shisha lounges in Dhaka. The filing, submitted to the Dhaka Metropolitan Police, requests details on raids, arrests, and compliance with a High Court directive issued in March mandating the closure of unauthorized lounges, amid claims that some establishments in areas like Banani and Gulshan remain operational.

    At the same time, enforcement efforts continue elsewhere, with officials in Kushtia destroying illegal tobacco products worth approximately Tk 2.5 crore ($225,000), including nearly 36 million sticks and units of cigarettes, bidis, and other items seized through anti-smuggling operations.

  • Illicit Cigarettes Undermine Health Warnings in New Zealand

    Illicit Cigarettes Undermine Health Warnings in New Zealand

    A Radio New Zealand investigation found black market cigarettes widely sold in Auckland without mandated health warnings, often at prices as low as NZ$13 ($7.67) per pack—less than a third of legal products. Under New Zealand law, tobacco packaging must carry graphic health warnings covering at least 75% of the pack, but most illicit products lack these labels, making enforcement more difficult for authorities.

    Public health experts say the absence of warnings and lower prices are undermining efforts to reduce smoking, particularly among low-income groups and young people. Officials note that non-compliant packaging is a key indicator used to identify illegal products, while penalties for violations include fines of up to NZ$600,000 ($354,000) for manufacturers and prison terms or fines for retailers.

  • Greek Authorities Dismantle €1 Billion Illicit Cigarette Network

    Greek Authorities Dismantle €1 Billion Illicit Cigarette Network

    Greek authorities dismantled a large-scale illegal cigarette production and smuggling network accused of causing €1 billion in losses over eight years. The operation, led by the Hellenic Authority for Combating Money Laundering following a four-month investigation, resulted in the freezing of extensive assets, including 42 properties, a factory used for processing illicit cigarettes, 76 vessels, and dozens of vehicles.

    The case involves 38 individuals and 21 companies, with authorities identifying two alleged ringleaders and several accomplices connected to a broader family network. Investigators said the group used shell companies, fake invoices and false certifications to launder proceeds and conceal the scale of its operations.

  • Tasmania Passes Bill to Strengthen Crackdown on Illicit Tobacco and Vapes

    Tasmania Passes Bill to Strengthen Crackdown on Illicit Tobacco and Vapes

    Tasmania’s House of Assembly passed the Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026, introducing new offences, higher penalties, and expanded powers to shut down businesses involved in the illegal sale of tobacco and vaping products. The legislation targets illicit trade and aims to strengthen enforcement against unauthorized products.

    Health Minister Bridget Archer said the measures are intended to reduce smoking and prevent youth access, while Police Minister Felix Ellis linked the illicit market to organized crime, warning against the spread of related criminal activity. The bill will now move to the Legislative Council for further consideration.

  • BAT Calls Pakistan Largest Illicit Cigarette Market

    BAT Calls Pakistan Largest Illicit Cigarette Market

    British American Tobacco (BAT) says Pakistan has become the world’s largest illicit cigarette market, with illegal products accounting for roughly 55–58% of consumption. Simon Trussler, BAT’s Group Head of International Trade and Fiscal Affairs, said steep tax increases in recent years have widened the price gap between legal and illicit cigarettes—now around half the price—driving consumers toward untaxed products while overall consumption remains broadly unchanged at about 80 billion sticks annually.

    BAT said higher taxes have failed to deliver expected revenue gains and instead have fueled domestic illicit production, which accounts for the majority of illegal supply. The company called for a more stable excise policy alongside sustained enforcement across the supply chain, noting recent seizures and factory closures as signs of increased government action.

  • 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.