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Tag: illicit tobacco

  • Imperial Warning Landlords to Police Tenants Selling Illicit Products

    Imperial Warning Landlords to Police Tenants Selling Illicit Products

    Imperial Brands warned commercial landlords across the UK that they could face criminal prosecution if they continue to collect rent from retail tenants selling counterfeit or illicit tobacco products. The company said it has written to landlords of multiple premises where investigations identified illegal tobacco sales despite repeated enforcement action, formally notifying them of the potential legal consequences if the activity continues.

    Imperial said landlords who knowingly benefit from illegal trade could face prosecution under the UK’s Proceeds of Crime Act, in addition to penalties associated with the sale of counterfeit goods, which can carry prison sentences of up to 10 years and unlimited fines. The company cited recent case law that it says confirms landlords may be held liable if they continue accepting rent from premises involved in illicit trade.

    Imperial is urging landlords to enforce lease provisions prohibiting illegal activity, cooperate with enforcement authorities, and evict non-compliant tenants where necessary. Deirdre Healy, Head of Corporate and Legal Affairs at Imperial Brands UK, said landlords “cannot turn a blind eye” to illicit tobacco sales, adding that the company is prepared to pursue legal remedies, including injunctions and support for criminal investigations, against landlords who fail to act.

  • Australian Economist Calls to Eliminate Tobacco Excise

    Australian Economist Calls to Eliminate Tobacco Excise

    Prominent Australian economist and public policy expert Richard Holden called for the temporary elimination of Australia’s tobacco excise, arguing that only a dramatic tax reduction can effectively dismantle the country’s rapidly expanding illicit tobacco market. Holden, a professor at the University of New South Wales and columnist for the Australian Financial Review, said reducing excise rates incrementally would be insufficient and that taxes should be cut to zero for as long as necessary to make illegal tobacco sellers uncompetitive. He argued that enforcement efforts alone are unlikely to succeed given the scale of the illicit market and the limited resources available to police agencies, and that undercutting the illicit process was the best way to eliminate it.

    Holden’s comments come as new data from the Australian Bureau of Statistics estimated that about 80% of nicotine products consumed in Australia in 2025 were sourced from the illegal market, up from 12% in 2017. He noted that the tobacco excise on a single cigarette has risen from 26 cents ($0.18) to approximately A$1.53 ($1.09), adding more than A$30 ($21.30) in tax to a pack of 20 cigarettes. The proposal goes beyond recent calls by Australian politician Pauline Hanson to halve tobacco excise and freeze indexation, highlighting growing debate over whether Australia’s high-tax tobacco policy is contributing to the expansion of a black market estimated to be worth billions of dollars annually.

  • Maldives Seized 23,000 Illegal Vapes Last Week

    Maldives customs authorities seized 23,008 vape cartridges over the past week in a series of enforcement operations targeting illegal imports following the country’s vaping ban. The latest seizure occurred on June 20 at Malé Commercial Harbor, where 6,328 cartridges were found hidden inside a shipment declared as general cargo. Earlier interceptions included 1,108 cartridges and 27 vaping devices concealed in food packaging, as well as separate bulk seizures of 5,600 and 15,600 cartridges from cargo inspections conducted over recent days.

    Authorities have not disclosed the origin of the shipments or identified any suspects, stating that investigations are ongoing. Under the Maldives Tobacco Control Act, which banned vaping products in December 2024, import violations carry fines of MVR 50,000 ($3,250) plus MVR 10,000 ($650) per electronic cigarette or vape product, with total penalties in this case expected to exceed MVR 230 million ($15 million).

  • ABF Announces $1.3M Illicit Tobacco Seizure

    ABF Announces $1.3M Illicit Tobacco Seizure

    The Australian Border Force released details of a major illicit tobacco and vape seizure in Darwin that confiscated 433,400 illicit cigarettes, 686 kg of loose-leaf tobacco, and 50,200 disposable vapes, preventing an estimated A$1.8 million ($1.3 million) in evaded duty and disrupting potential criminal proceeds valued at A$3.7 million ($2.6 million). Officers executed warrants on May 28 as part of Operation GOALFENCE.

    The operation, supported by the Detector Dog Unit, follows another Northern Territory seizure earlier this month involving more than 100,000 cigarettes and 39 kg of loose-leaf tobacco intercepted through the international mail stream. The ABF said the action targeted organized criminal supply chains linked to the illicit tobacco and vape market.

  • Illicit Cigarette Market Climbs to 16% in Cyprus

    Illicit Cigarette Market Climbs to 16% in Cyprus

    Illegal cigarette consumption in Cyprus continued to rise in 2025, reaching an estimated 16.3% of total cigarette consumption, according to a new report by KPMG conducted for Philip Morris International. The study found that approximately 160 million illicit cigarettes were consumed in Cyprus during the year, resulting in an estimated €27 million in lost tax revenue, up from €22 million in 2024.

    Across the European Union, illicit cigarette consumption exceeded 10% of total market volume for the first time since 2014, with 41.8 billion illegal cigarettes consumed and an estimated €16.7 billion in lost public revenue. The report also noted that illicit heated tobacco products remain a relatively small segment, accounting for just 1.2% of total consumption.

  • PM India Calls to Disrupt Illicit Tobacco Ecosystem

    PM India Calls to Disrupt Illicit Tobacco Ecosystem

    A new industry update from the EU-ASEAN Business Council highlights the continued scale of illicit tobacco trade in India and across Southeast Asia, underscoring growing concerns over smuggling, counterfeit products, and unregulated nicotine markets. According to the Tobacco Institute of India (TII), illicit cigarettes account for nearly one-quarter of India’s domestic cigarette market, resulting in estimated annual revenue losses of around Rs. 23,000 crore ($2.4 billion). The report coincides with World Anti–Counterfeiting Day remarks from Philip Morris India, which reiterated calls for stronger enforcement and industry collaboration to combat illegal tobacco flows.

    Broader regional data from EU-ABC and Euromonitor International show the illicit tobacco market across ASEAN-6 generated an estimated $12.6 billion over 2024–2025, with illicit cigarette volumes rising 14% and illicit e-vape sales increasing 24% in the past year. Additional intelligence cited in the update points to a rapidly expanding global illicit nicotine ecosystem, including a multi-billion-dollar illegal e-cigarette market, alongside continued enforcement actions in India such as large-scale seizures of prohibited vaping devices and cigarette shipments. PM India said the findings reinforce the need for stronger track-and-trace systems, cross-border enforcement, and coordinated policy responses to curb the growing black market.

  • UK Could Shut Down Stores Selling Illicit Products for a Year

    The UK government announced plans today (June 10) to extend closure orders for businesses linked to criminal activity, including retailers selling illegal tobacco and vaping products, following a series of BBC investigations into organized crime on British high streets. Home Secretary Shabana Mahmood said that under the proposed changes, authorities in England and Wales would be able to shut offending premises for up to 12 months, double the current maximum closure period of six months. The Home Office said the longer closures would give enforcement agencies more time to gather evidence, pursue prosecutions and prevent rogue operators from quickly reopening.

    The move has been welcomed by Trading Standards officials and industry observers who have argued that existing powers are insufficient to tackle persistent illegal tobacco and vape sales.

    “This is a welcome step from the government,” said Dr Marina Murphy, senior director of scientific affairs at Haypp. “Too often, we hear of corner shops or mini-marts caught by the authorities selling illicit products simply carrying on with their illegal activities immediately afterwards. The penalty for the illegal activity was simply not a deterrent. This has been a source of frustration for both enforcement authorities and responsible retailers. The potential to issue a 12-month closure order on a business is a much more significant penalty and will make those engaged in illegal behavior think twice.”

    The announcement follows reports linking some convenience stores, vape shops and barbers to illicit cigarette sales, drug trafficking, money laundering and illegal working. The government said the extended closure powers will form part of a broader crackdown on organized crime in retail settings, alongside a newly announced £30 million High Street Crime Unit. The legislation is expected to be introduced later this year and come into force in early 2027.

  • Pakistan Intensifies Illegal Tobacco Crackdown

    Pakistan Intensifies Illegal Tobacco Crackdown

    Pakistan continues to step up enforcement actions against illicit cigarette manufacturing and non-duty-paid tobacco products, with advocacy group ACT Alliance Pakistan praising recent government efforts led by the Federal Board of Revenue (FBR). The group said ongoing operations targeting smuggled brands, counterfeit tax stamps, and violations of the Track and Trace Systems are aimed at protecting tax revenue and formal businesses, estimating that the illegal cigarette trade costs the country more than Rs300 billion ($1.1 billion) annually.

    ACT Alliance Country Director Mubashir Akram said sustained enforcement is essential to prevent tax evasion networks from undermining the formal economy, adding that illicit trade is increasingly structured across manufacturing, distribution, and retail channels. He also warned that regulatory pressure must be consistent rather than episodic and called for stronger coordination among enforcement agencies, including Customs, Inland Revenue, and provincial authorities. The group further argued that tackling illicit tobacco is linked to broader investor confidence, stating that perceptions of enforcement effectiveness influence both domestic and foreign investment decisions.

  • JTI, Authorities Trying to Dent Malaysia’s Illicit Market

    JTI, Authorities Trying to Dent Malaysia’s Illicit Market

    Japan Tobacco International said the illicit cigarette trade remains a major challenge in Malaysia, with counterfeit tax stamps and increasingly sophisticated cross-border smuggling operations complicating enforcement efforts. According to JTI Malaysia, the share of illicit cigarettes carrying counterfeit Malaysian tax stamps rose from 8.7% in 2023 to 16% in January 2026, the highest level recorded. The company cited a recent enforcement operation in the Philippines that uncovered counterfeit Malaysian tax stamps allegedly intended for the Malaysian market.

    JTIM estimated the country’s illicit cigarette incidence rate at 56.7%, representing roughly RM4 billion ($1 billion) in lost government revenue. Company executives said affordability remains a key driver of illicit trade, warning that rising logistics costs, raw material inflation, and potential excise tax increases could widen the price gap between legal and illicit products. The company also pointed to growing consumer migration toward alternative nicotine products such as vapes, which currently face lower taxation levels than cigarettes.

    JTIM said policymakers are evaluating stronger deterrence measures, including digital tax stamps designed to improve supply-chain tracking and real-time product authentication. The company also called for a more balanced tax framework across nicotine categories, advocating for vape taxation to align more closely with heated tobacco products rather than combustible cigarettes.

  • 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.