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Tag: illicit tobacco

  • 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.

  • Pakistan Battling Illicit Cigarettes as Farmers Seek Balance

    Pakistan Battling Illicit Cigarettes as Farmers Seek Balance

    Pakistan is intensifying efforts to tackle distortions in its tobacco sector, combining a nationwide crackdown on illicit cigarettes with growing provincial demands for fiscal reforms. Finance Minister Bilal Azhar Kayani announced enforcement actions targeting illegal manufacturers and retailers, alongside track-and-trace systems and stronger tax oversight, noting the illicit market costs around Rs200 billion ($720 million) annually and now exceeds 50% of total consumption (43.5 billion sticks), with cheaper untaxed products undercutting legal sales.

    At the same time, lawmakers in Khyber Pakhtunkhwa are pushing to tax the transport of locally grown tobacco to other regions, arguing the province — despite producing about 98% of Pakistan’s flue-cured Virginia tobacco — captures little value due to cigarette manufacturing being concentrated in tax-free zones elsewhere. Officials say the imbalance is fueling unemployment and farmer losses, underscoring calls for coordinated policy measures to restore fair taxation and economic returns across the supply chain.

  • NZ Retailers Want Crackdown to Avoid Australia’s Illicit Tobacco Crisis

    NZ Retailers Want Crackdown to Avoid Australia’s Illicit Tobacco Crisis

    Retail NZ is calling for the government to establish an urgent multi-agency task force to combat the growing illicit tobacco trade, warning that New Zealand risks facing the kind of organized crime activity seen in Australia if enforcement is not strengthened. In a report released April 13, Chief Executive Carolyn Young said black-market cigarettes are now being sold openly in some Auckland shops at steep discounts, undermining tobacco control measures and exposing retailers to criminal pressure.

    Retail NZ is urging coordination between police, customs, and the Ministry of Health, tougher penalties, and an independent roundtable to address the issue, noting that current enforcement is fragmented and sanctions remain low. Under existing law, selling illicit cigarettes can carry penalties of up to six months’ imprisonment or a NZ$20,000 ($11,800) fine, while importing tobacco without paying excise duty violates customs regulations.

  • Weak Illicit Cigarette Enforcement Drains $1.1B in Pakistan

    Weak Illicit Cigarette Enforcement Drains $1.1B in Pakistan

    Pakistan is losing more than Rs300 billion ($1.1 billion) each year to the illegal cigarette trade due to weak enforcement against illicit manufacturing and smuggling, according to macroeconomic analyst Osama Siddiqui. He said effective action in the tobacco sector could significantly reduce the country’s widening revenue gap.

    The shortfall comes as fiscal pressures mount. The Federal Board of Revenue missed its March target by Rs185 billion ($666 million), collecting Rs1,182 billion ($4.3 billion) against a goal of Rs1,367 billion ($4.9 billion) — just a 6% year-on-year increase versus the 21% growth required. Meanwhile, the government is trimming development spending to fund fuel relief, while facing pressure from the International Monetary Fund to withdraw tax exemptions.

    Siddiqui argued that instead of raising taxes on already compliant sectors, authorities should prioritize curbing tax evasion in tobacco through stricter action against illegal production and smuggling, full implementation of track-and-trace systems, and tighter retail monitoring. He said plugging these leakages could create fiscal space for public relief and development spending at a time of heightened economic strain.

  • S. Africa Trying to Flip ‘Inadequate’ Illicit Tobacco Response

    S. Africa Trying to Flip ‘Inadequate’ Illicit Tobacco Response

    South Africa’s response to illicit tobacco remains inadequate, with legislative gaps, weak enforcement, and entrenched criminal networks that have been flourishing since the Covid-19 cigarette ban, Stefano Betti of the Transnational Alliance to Combat Illicit Trade said at the EMEA Security Conference in Cape Town. He said illicit cigarettes may now account for between 50% and 75% of the market, driven largely by local under-declaration of production to evade taxes, creating severe price distortions between legal and illegal products and fueling money laundering risks.

    While acknowledging progress such as the creation of the Border Management Authority, efforts by the National Prosecuting Authority, and South Africa’s exit from the Financial Action Task Force grey list, Betti stressed that political commitments must translate into operational results. Echoing the call for stronger action, Kobus Lategan of the South African Police Service said authorities are preparing a large, intelligence-led national operation under direction from Cyril Ramaphosa to target illicit trade and counterfeit goods through coordinated enforcement across agencies and with private-sector support.