Tasmanian authorities seized nearly A$10 million ($7 million) worth of illicit tobacco and vaping products during the 2025-26 financial year, including 5.43 million cigarettes, 2,535 kilograms of loose tobacco, and nearly 30,000 illegal vapes, following intensified enforcement efforts and closer cooperation between the Department of Health and Tasmania Police. The seizures come as the state implements tougher laws targeting illicit tobacco and vape sales, including higher penalties, new business closure powers, and restrictions on vending machine sales. At the same time, Tasmanian officials are urging Australia’s federal government to reduce tobacco excise taxes, arguing that high cigarette prices are fueling black market growth, reducing excise revenue, and strengthening organized crime despite continued declines in smoking rates.
Tag: illicit tobacco
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Philippine Authorities Pushing for Tougher Penalties in Illicit Tobacco Fight
Philippine lawmakers and prosecutors are calling for stronger prosecution efforts to combat the country’s growing illicit tobacco trade, arguing that product seizures alone have failed to deter organized criminal networks. Speaking at the Third International Tobacco Summit, House Public Order and Safety Committee Chair Rolando Valeriano urged law enforcement to prioritize securing convictions, while noting that illicit trade remains highly profitable if offenders are not held accountable. The push comes as a recent EU-ASEAN Business Council and Euromonitor International study estimated the Philippines lost about ₱141 billion ($2.3 billion) in tax revenue over the past two years due to illicit tobacco products, with illegal products accounting for roughly one-quarter of cigarette sales and more than 80% of vape sales.
Officials also highlighted proposals for an Anti-Illicit Trade law that would strengthen prosecutions, improve interagency coordination, and introduce track-and-trace technology, while prosecutors acknowledged that many existing cases require additional evidence before they can proceed to trial.
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Philippines Seizes $48M in Illegal Cigarettes
Philippine authorities are preparing to destroy more than ₱3 billion ($48 million) worth of smuggled cigarettes after seizing 59 container vans of the Modern Gia brand in coordinated operations across Cebu and Manila. The Bureau of Customs and the National Bureau of Investigation said the shipment, believed to have originated in China, is one of the country’s largest cigarette smuggling busts this year and announced plans to file multiple criminal charges against those involved, including financiers and organizers, under customs, tax, anti-economic sabotage, and potential intellectual property laws.
Officials said the cigarettes will be shredded rather than auctioned to prevent them from re-entering the market, while investigations continue into the shipment’s origins, associated companies, and any public officials who may have facilitated the operation.
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Bangladesh Banking on Technology to Fight Illicit Tobacco
Bangladesh’s government unveiled a technology-driven strategy to combat illicit tobacco trade as part of its FY2026-27 budget, aiming to strengthen tax enforcement, protect government revenue, and support public health goals. Central to the plan is a comprehensive Track and Trace system that will use AI-enabled cameras, automated production counting devices, and QR or AR-coded tax stamps to monitor tobacco manufacturing and distribution in real time. Finance Minister Amir Khosru Mahmud Chowdhury said tobacco taxation remains a critical tool for both revenue generation and public health, with the new measures designed to create a more modern, transparent, and technology-based VAT system while reducing tax evasion across the tobacco supply chain.
The proposal also includes a mobile app that allows the public to report illicit tobacco products directly to the National Board of Revenue, along with a whistleblower reward program to encourage reporting of smuggling and illegal sales. Additional measures include restricting cigarette and bidi paper imports to authorized manufacturers, imposing a 300% supplementary duty on cigarette filter materials and a 350% duty on nicotine granules and nicotine pouches, while raising minimum cigarette retail prices and setting maximum prices and excise duties for nicotine pouches and heated tobacco products. The government said the combined approach of digital monitoring, stronger enforcement, and higher tobacco taxes is intended to curb illicit trade, although estimates of Bangladesh’s illicit cigarette market vary widely, ranging from about 5.6% in an independent study to more than 18% according to industry estimates.
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Malaysian Police Bust International MDMA Hub
Malaysian police dismantled a foreign-run drug syndicate that allegedly used the country as a processing and packaging hub for MDMA-laced vape cartridges destined for Indonesia. In Operation Pijat, authorities arrested eight foreign nationals in Selangor and seized approximately 500 vape cartridges containing suspected MDMA, nearly 5 kg of the drug, and bottles of liquid MDMA with an estimated street value of RM152,400 ($38,000). Police believe the group had been operating since February, using remote locations to prepare the illicit products before smuggling them by sea, and said the syndicate had likely completed several overseas shipments before the operation disrupted its activities.
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Illicit Trade Picking Up in Wales
Authorities in Newport, Wales, say their city has become a hotspot for the illicit tobacco and vape trade, having already identified 17 businesses selling illegal products since January 2026 and taking enforcement action against 14, including closures and prosecutions. Trading Standards seized 272,740 illicit cigarettes, 85.25 kg of hand-rolling tobacco, and 9,694 illegal vaping devices so far this year, following 59 seizures and 46 closure orders in 2025.
With 9.8 vape shops per 100,000 people, Newport ranks eighth in the U.K. for vape shops per capita, fueling concerns over the rapid growth of the sector as officials say the illegal trade undermines legitimate retailers and is linked to wider criminal activity.
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PMI Exec: Lack of Rules Boosts Illegal Segment
Nick Ricketts, PMI’s president of oral products, said regulatory clarity is essential for the development of nicotine pouch markets and the protection of consumers. In an interview with Logos Press, he said, “When there are no rules, the market shifts to the illegal segment.”
Ricketts argued that nicotine pouches should be integrated into regulated systems rather than banned, with clear product standards, nicotine limits, flavor rules, age verification, and marketing restrictions. He pointed to regulatory models such as FDA oversight in the U.S. and structured national frameworks in parts of Europe as more effective than outright prohibitions. He said bans can push demand into illicit channels, weakening quality control and age enforcement, citing Germany and Belgium as examples. He highlighted Sweden as a benchmark, where long-term access to smoke-free alternatives and supportive tax policy have coincided with very low smoking rates. He also said PMI views nicotine pouches as part of its broader smoke-free portfolio, with growing availability across global markets under increasing regulatory oversight.
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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.
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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.
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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).