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Tag: illicit tobacco

  • Report Finds EU Lagging in Fight Against Illicit Tobacco

    Report Finds EU Lagging in Fight Against Illicit Tobacco

    The European Court of Auditors (ECA) says the European Union lacks reliable data on the size and impact of the illicit tobacco market and that fragmented national rules and weak coordination are leaving gaps that criminal groups can exploit. Euractiv reported that the auditors estimate the illicit tobacco trade costs the EU and its member states about €13 billion in lost revenue annually, although the ECA cautioned that the estimate should be treated carefully. Euractiv also highlighted the ECA’s criticism of limited transparency around bilateral agreements between EU governments and tobacco companies to combat illicit trade.

    EUobserver reported that the ECA found one in 10 cigarettes made in the EU is either illegally produced or smuggled, while vapes and heated tobacco products account for 13% of the illicit market by value. EUobserver also said the European Anti-Fraud Office helped prevent €178 million in lost tax revenue in 2025 and that the European Commission has accepted most of the ECA’s recommendations but rejected some proposals, including a coordinated EU monitoring system and a framework for assessing member states’ effectiveness in fighting illicit tobacco.

  • Australia’s Coalition Looking to Stop Illicit Tobacco, Gangs 

    Australia’s Coalition Looking to Stop Illicit Tobacco, Gangs 

    Australia’s opposition Coalition has unveiled a plan to tackle the country’s illicit tobacco and vape trade by cutting tobacco excise by 80% and committing A$200 million ($140 million) to a nationwide law-enforcement crackdown. The Coalition estimates organized crime groups make A$4.1 billion to A$6.9 billion ($2.9 billion to $4.8 billion) annually from illicit tobacco, with proceeds funding drug trafficking, scams, money laundering, and violence. Opposition Leader Angus Taylor said the plan would attack criminal gangs by narrowing the price gap between legal and illegal cigarettes while strengthening efforts to shut illegal retailers, intercept shipments, and trace criminal finances. 

    The proposal would cut excise on a standard 20-pack from about A$30 to just over A$6 ($21 to $4.20) and legalize, regulate, and tax vapes and nicotine pouches for adults. The Coalition says illicit tobacco now accounts for about 80% of consumption and 95.7% of e-cigarettes sold are illegal, arguing current restrictions have pushed consumers toward criminal suppliers. It also proposes A$60 million ($42 million) for public education and says Parliamentary Budget Office modelling indicates the package could improve the budget balance by about A$8 billion ($5.6 billion) over four years and more than A$20 billion ($14 billion) over a decade. 

  • Philippines Says 93% of Vape Brands Unregistered

    Philippines Says 93% of Vape Brands Unregistered

    The Philippines’ Department of Trade and Industry (DTI) said 292 of 313 vape brands (93%) identified in the market are not registered with the agency. DTI Assistant Secretary Marcus Valdez II disclosed the figures during an Aug. 25 House Ways and Means Committee hearing on tobacco and vapor excise taxes.

    Lawmakers and government agencies are considering a single excise tax rate for nicotine salt and freebase vapor products, arguing the current two-tier system contributes to tax leakage and illicit trade. “They will not register because the tax is too high,” committee chairman Miro Quimbo said. The Bureau of Internal Revenue reported 6,196 tobacco and vape enforcement operations in 2026, generating an estimated P1.7 billion ($27 million) in excise taxes.

    The Bureau of Customs reported 253 tobacco seizures worth P10 billion ($160 million) and 18 vapor-product seizures worth P1.6 billion ($25.6 million) this year, compared with P1.87 billion and P649 million ($29.9 million and $10.4 million), respectively, in 2025. Lawmakers cautioned that excessive taxes could drive more consumers toward illicit products, with Rep. Roberto Nazal saying authorities should avoid “overtax[ing] to the point that we will promote further smuggling.”

  • Australian Party Calls for 80% Tobacco Tax Cut

    Australian Party Calls for 80% Tobacco Tax Cut

    Australia’s federal opposition is calling for tobacco excise to be cut by up to 80% to undermine organized crime networks that it says now control much of the country’s tobacco market. A coalition task force report released today (Aug. 26) said as much as 80% of tobacco consumed in 2025 was illicit, up from 12% in 2017.

    Sen. Richard Colbeck and Monash MP Mary Aldred said high tobacco taxes have helped fuel an underground market linked to firebombings and arson attacks. “Criminals had taken ‘almost complete control of Australia’s tobacco market,’” the report said. Colbeck said the issue is no longer simply about smoking but “who controls a billion-dollar market in our economy: the Australian government or organized crime?”

    The report said tobacco excise revenue fell from about A$16 billion ($11.2 billion) in 2019-20 to A$8 billion ($5.6 billion) in 2024-25 and is projected to fall to A$4 billion ($2.8 billion) in 2025-26 and A$2 billion ($1.4 billion) by 2029-30. One Nation has proposed a 75% cut, while the Nationals and NSW Premier Chris Minns have also backed lower taxes. The Albanese government has opposed reducing the excise.

  • Value of Seized Tobacco in Philippines Quadruples

    Value of Seized Tobacco in Philippines Quadruples

    The Philippines’ Bureau of Customs (BOC) said it seized nearly P11.68 billion ($186.9 million) worth of illegal cigarettes and vape products from January through July 2026, up 464% from the P2.52 billion ($40 million) seized during all of 2025, according to Enforcement and Security Services data presented to the House Ways and Means Committee. Cigarette and tobacco seizures accounted for most of the total, with major confiscations at the ports of Surigao, Manila, Zamboanga, and Cebu, while vape seizures were valued at about P1.65 billion ($26.4 million), primarily at the Manila International Container Port. BOC said confiscated products are destroyed and do not enter the market.

  • New Zealand Tobacco Sales Fall More Than 20%

    New Zealand Tobacco Sales Fall More Than 20%

    Tobacco sales in New Zealand fell by more than 20% year over year in 2025, with the volume sold now less than half its level a decade ago, Associate Health Minister Casey Costello said.

    Annual tobacco returns show the volume of tobacco sold has fallen by two-thirds since 2010, while cigarette sales per capita have dropped nearly 80%, trends that correspond with declining smoking rates. Costello said, however, that the sharper decline in legal tobacco sales in recent years could partly reflect increased availability of black-market cigarettes rather than an equivalent decline in smoking.

    The government is focusing on disrupting illegal tobacco sales, preventing youth smoking, and helping smokers quit. Costello also said that measures introduced a year ago to ban disposable vapes, restrict product displays, and increase penalties for underage tobacco and vape sales have been accompanied by increased enforcement activity.

  • Australia Launches Nationwide Illegal Tobacco Crackdown

    Australia Launches Nationwide Illegal Tobacco Crackdown

    Australian authorities announced the launch of a major operation targeting the distribution of illegal tobacco, with more than 100 service stations raided across New South Wales, Victoria, Queensland, South Australia, Western Australia, and the ACT on Aug. 11. Operation Shorthand involved about 250 federal, state, and territory officers and was based on shared intelligence and agency referrals, according to Assistant Minister for Customs Julian Hill.

    The raids come amid growing concern over Australia’s illicit tobacco market. The Australian Bureau of Statistics estimates illicit tobacco, vapes and loose-leaf tobacco accounted for about 80% of tobacco and nicotine consumption in 2025, compared with 12% in 2017.

    The operation remains ongoing, with authorities saying further outcomes will be announced. Hill said the government was targeting both sellers and suppliers of illegal tobacco and nicotine products, while the Australian Border Force said any decisions to temporarily close businesses suspected of selling illicit products would be made by the relevant state or territory authorities.

  • EU-ASEAN Business Council Calls for Regional Action Against Illicits

    EU-ASEAN Business Council Calls for Regional Action Against Illicits

    The EU-ASEAN Business Council urged ASEAN members to strengthen regional cooperation to combat illicit trade, describing it as a growing threat to economic growth, government revenues, and supply chain resilience. In a report released ahead of the Philippines’ 2026 ASEAN chairship, the council called for greater intelligence sharing, harmonized regulatory frameworks, expanded use of digital customs tools, stronger public-private collaboration, and closer engagement with dialogue partners, including India.

    The report identified illicit tobacco trade as a longstanding challenge and highlighted the need for coordinated enforcement and supply chain oversight. Philip Morris India Managing Director Navaneel Kar said illicit tobacco trade undermines revenue collection, market transparency, and the rule of law, adding that the company supports efforts including market intelligence, research, and voluntary track-and-trace initiatives to strengthen lawful trade.

  • Dutch Seize 1.2M Counterfeit Cigarettes at German Border  

    Dutch Seize 1.2M Counterfeit Cigarettes at German Border  

    Dutch authorities seized 1.2 million counterfeit cigarettes from a van near the German border during a joint Dutch-German police operation on the A7 near Bad Nieuweschans, arresting one suspect and transferring the case to customs for investigation. The seizure brings total illicit cigarette seizures in the Netherlands to 106 million so far this year, as authorities step up enforcement against tobacco smuggling amid high cigarette prices that have fueled demand for black market and cross-border tobacco purchases.

  • Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Calls are growing in Australia for the federal government to reconsider tobacco excise policy, with critics arguing high cigarette taxes are fueling the illicit tobacco market. NSW Premier Chris Minns said the “massive” excise, which adds about A$30 ($21) to a 20-pack of cigarettes, has created a price gap that benefits illegal sellers. He said the policy needs to be reviewed while emphasizing his opposition to smoking and tobacco companies.

    Former law enforcement officials and lawmakers also warned that seizures alone are not addressing the scale of the illicit trade. Former Australian Federal Police and Australian Border Force officer Rohan Pike said enforcement efforts are only capturing a small portion of illegal tobacco entering the country, while Liberal MP Mary Aldred said the black market is contributing to organized crime concerns. The federal government has rejected lowering excise and said it remains focused on enforcement and border seizures.