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Tag: illicit tobacco

  • South Australia Reports Record-Low Smoking, Rising Illicit Concerns

    South Australia Reports Record-Low Smoking, Rising Illicit Concerns

    South Australia reported record-low smoking rates as part of its Tobacco Strategy 2023–2027, with daily smoking falling to 7.5% in 2025 from 10.6% in 2020, according to the latest government progress report. Declines were also recorded among younger adults, middle-aged populations, and people living with mental illness, while the average age of smoking initiation increased to 17 years. State officials credited legislative reforms, public health campaigns, and expanded enforcement efforts for progress, while emphasizing ongoing investment in anti-vaping initiatives and illicit tobacco crackdowns.

    However, the report also highlights significant ongoing challenges for the tobacco and nicotine sector. Rising youth vaping rates remain a concern despite stricter regulations, and authorities estimate illicit tobacco and e-cigarette products now account for roughly 55% of Australia’s total market, underscoring the scale of illegal trade and enforcement difficulties. The government signaled that additional reforms targeting illicit supply chains and organized crime are under consideration, suggesting further regulatory pressure ahead for both legal tobacco and alternative nicotine product markets.

  • BATB Sales Choked by Taxes, Illicits

    BATB Sales Choked by Taxes, Illicits

    British American Tobacco Bangladesh reported a sharp downturn in first-quarter FY2025-26 performance as higher tobacco taxes, consumer downtrading, and rising competition from illicit cigarettes weighed heavily on sales. Domestic cigarette volumes fell 14% year-on-year, dragging gross revenue down 10.7% and net revenue down 21% as the effective tax burden climbed to 84.1%.

    Industry estimates suggest illicit cigarettes now capture up to 18% of the market, intensifying pressure on compliant manufacturers. While gross margin improved to 56% on lower cost of sales, operating expenses surged more than 40%, and operating cash outflow widened amid rising inventories and higher short-term borrowing. Non-core revenue streams offered little support, with cigarette exports remaining at zero for a third straight quarter and leaf export volumes falling sharply.

  • Imperial Backs UK’s Push to Fight Organized Crime

    Imperial Backs UK’s Push to Fight Organized Crime

    Imperial Brands backs new Government crackdown on illicit trade to protect honest retailers

    Imperial Brands has welcomed the UK Government’s new £30m High Street organised crime unit[1], designed to tackle illicit trade and support law-abiding retailers across the UK.

    The move follows growing concern around the scale of criminal activity operating through some high street outlets, with illegal products undercutting legitimate businesses and distorting fair competition amongst retailers.

    Under the plans, offending premises will face increased enforcement action, including raids, closures and asset seizures, with additional funding provided to Trading Standards teams.

    Imperial Brands believes this step will help level the playing field for responsible retailers who operate within the law and serve their local communities.

    James Hall, Anti-Illicit Trade Manager, Imperial Brands, said:

    “Honest retailers are being undermined every day by illegal operators selling illicit and unregulated products.

    “Stronger enforcement is essential to protect those doing the right thing and to restore a fair playing field across the high street.

    “We welcome this action and will continue working with retailers and authorities to help tackle illicit trade.”

    He continued: “As a business committed to the highest possible standards in manufacture and retail practice, we have always stood with ethical retailers who do the right thing when it comes to sourcing and selling tobacco and nicotine products.”

    Illicit tobacco and nicotine products are increasingly being sold through a range of outlets, including some convenience stores, vape shops and other high street premises.

    This impacts not only customers, suppliers and government revenues but also the viability of legitimate local retailers, many of whom are already operating in a challenging economic environment.

    Imperial Brands continues to work closely with Trading Standards, law enforcement agencies and retailers to raise awareness, support compliance and help identify illegal activity.

    The company says sustained enforcement, combined with retailer education and collaboration, will be key to tackling the issue long term and protecting responsible businesses. As illicit trade becomes increasingly organised and sophisticated, robust enforcement and meaningful penalties are essential to protect legitimate retailers and local communities.

    Imperial Brands has long called for stronger enforcement action, tougher penalties, and greater support for Trading Standards to help tackle illicit trade and protect responsible retailers.

    Imperial Brands strongly encourage retailers to report any potential illicit trade activity in their area to our sales teams, who can then report it on our dedicated trade platform. Alternatively, retailers can contact us directly through email suspectit.reportit@uk.imptob.com or our anti-illicit trade hotline on 0800 049 5992. 

    [1] https://www.bbc.co.uk/news/articles/ce3pzwx449no

  • Singapore’s Illicit Vape Trade Generated $8.1M Despite Ban

    Singapore’s Illicit Vape Trade Generated $8.1M Despite Ban

    A new report by the EU-ASEAN Business Council and Euromonitor International estimates Singapore’s illegal vape market generated S$10.4 million ($8.1 million) in revenue between 2024 and 2025, contributing to roughly S$156 million ($121.7 million) in lost government revenue from illicit tobacco sales. Despite Singapore’s 2018 vaping ban and stricter penalties, authorities continue to intercept large shipments, including a February seizure of e-vapes worth over S$1.1 million ($858,000). Singapore Customs also reported sharp rises in duty-unpaid cigarette seizures in 2024 and 2025, underscoring the persistence of illicit trade even as the country maintains one of the region’s lowest rates of illegal cigarette consumption.

  • Philippines Flagged ‘Elevated Risk’ for Illicit Cigarettes as Price Gaps Grow

    Philippines Flagged ‘Elevated Risk’ for Illicit Cigarettes as Price Gaps Grow

    The Philippines has been identified as an “elevated risk” market for illicit cigarettes, with illegal products accounting for 25.3% of total sales last year and projected to rise to 28.9% by 2028, according to a Euromonitor International study commissioned by the EU-ASEAN Business Council. The report estimates the government lost nearly $980 million in 2024 and about $1.1 billion last year due to the illicit cigarette trade, while illegal e-vapes, which make up 86% of the market, caused an additional P23 billion ($400 million) in losses from 2024 to 2025.

    Researchers cited price-sensitive consumers, porous maritime borders, established regional smuggling routes, annual excise tax hikes of 5%, and enforcement challenges as key drivers, with illicit products increasingly imported from neighboring ASEAN states and China. The study also highlighted the growing role of digital platforms such as Telegram, WhatsApp, and Facebook Marketplace in distributing illegal tobacco, alongside traditional sari-sari stores and street vendors, and warned that paper-based tax stamps are easily counterfeited, recommending a shift toward digital tax verification systems to better protect revenues and track the trade.

  • Caloocan City Adopts Anti-Illicit Tobacco Ordinance

    Caloocan City Adopts Anti-Illicit Tobacco Ordinance

    Caloocan City, Philippines, enacted City Ordinance No. 1193, Series of 2026—the Anti-Illicit Tobacco Trade Ordinance—becoming the first local government unit in Metro Manila to formally prohibit the manufacture, distribution, and sale of tobacco products that do not comply with national regulations. Mayor Dale Gonzalo Malapitan said the measure targets cigarettes lacking Internal Revenue stamps, graphic health warnings, or those sold below government-mandated pricing, with penalties that include fines, business permit suspension or revocation, and imprisonment of up to one year. The city’s Business Permits and Licensing Office has been directed to enforce compliance among retailers.

    Orlando Oxales, convenor of CitizenWatch Philippines, called the move “strong and timely,” noting similar local actions this year in Mariveles, Bataan, and ongoing discussions in Davao City aimed at strengthening anti-illicit trade enforcement at the LGU level.

  • Dutch Authorities Seizing Large Quantities of Illicit Products

    Dutch Authorities Seizing Large Quantities of Illicit Products

    Dutch authorities seized large volumes of illicit nicotine products in a series of enforcement actions over the last two weeks, including nearly 220,000 illegal vapes, more than 50,000 boxes of banned nicotine pouches, and 23 million illicit cigarettes. The total value of the items would roughly be in the €14–20 million range.

    The seizures, carried out by the NVWA and FIOD, targeted storage sites and shipping containers across Zuid-Holland and Noord-Brabant, with officials noting the products—many of them flavored—violated national regulations. Eight suspects have been arrested in connection with the cigarette seizures, with authorities estimating potential tax losses of nearly €9 million.

  • Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s illicit cigarette market is approaching a “critical stage,” with illegal products now accounting for roughly 50% of total consumption, according to industry representatives. Philip Morris International and Japan Tobacco International executives said the country’s illicit rate is among the highest in the region, far exceeding levels in markets such as Singapore and Thailand, and warned that widespread availability has normalized illegal purchasing among consumers.

    Industry speakers linked the surge to a sharp excise tax increase in 2015, which widened the price gap between legal and illicit products and drove illegal market share to as high as 63% at its peak. Officials and stakeholders emphasized that addressing the issue will require a coordinated approach combining stronger enforcement, policy adjustments and greater public cooperation, as smuggling networks continue to adapt and exploit regulatory gaps.

  • PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    Philip Morris International warned that the continuing conflict in the Middle East could disrupt supply chains and drive a surge in illicit cigarette trade across Southeast Asia. The company said past disruptions, such as during the COVID-19 pandemic, led to sharp increases in illegal market share, with illicit trade in the Philippines rising from 6% to 17%. PMI estimates governments in the ASEAN region are already losing around $4 billion annually in cigarette excise revenue, with an additional $2 billion lost from illegal vaping products.

    PMI called for stronger regional coordination to address the issue, including real-time sharing of customs data among ASEAN countries to better track illicit flows. The company said supply constraints and regulatory gaps create opportunities for illegal operators, and urged policymakers to adopt more unified enforcement strategies as the Philippines chairs ASEAN this year.

  • NSW Ups Penalties for Landlords With Tenants Selling Illicit Products

    NSW Ups Penalties for Landlords With Tenants Selling Illicit Products

    New South Wales, Australia, passed legislation introducing criminal penalties for landlords who knowingly allow tenants to sell illicit tobacco or illegal vapes, as part of a broader crackdown on the black market. Under the new law, offenders face up to 12 months’ imprisonment and fines of up to A$165,000 ($118,800). The measure builds on recent reforms, including tougher penalties for possession and sale, expanded closure powers for non-compliant premises, and new enforcement tools targeting false licensing and interference with seizures.

    The government also increased enforcement capacity, adding 30 inspectors to support statewide operations alongside police, with more than 220 closure orders issued since late 2025. Officials say the reforms are designed to address evolving tactics, including online and QR code-based sales, and to strengthen accountability across the supply chain to curb illicit tobacco and vape distribution.