Tag: illicit

  • Northern Ireland Busts ‘One of the Largest’ Illegal Tobacco Factories

    Northern Ireland Busts ‘One of the Largest’ Illegal Tobacco Factories

    Authorities in Northern Ireland dismantled what is believed to be one of the country’s largest illegal tobacco factories, following an October 5 raid by HM Revenue and Customs (HMRC) with support from the police. The operation uncovered a “state-of-the-art factory” equipped with expensive machinery, professional extraction equipment, and soundproofing insulation. Officers seized nine tons of tobacco and 1.3 million cigarettes, with an estimated value of over £3 million in unpaid duty. Seven men were arrested on suspicion of fraudulent evasion of duty, and investigations are ongoing.

    Dermot Clarke, operational lead in HMRC’s Fraud Investigation Service, described the site as “one of the most sophisticated tobacco factories we have ever uncovered in Northern Ireland,” warning that illicit trade harms public services, undermines legitimate businesses, and funds other criminal activity.

  • Australia’s Tobacco Policies Spark Harm and Chaos, Industry Expert Says

    Australia’s Tobacco Policies Spark Harm and Chaos, Industry Expert Says

    In a candid keynote at the Global Tobacco and Nicotine Forum (GTNF), Theo Foukkare, CEO of the Australian Association of Convenience Stores, delivered a scathing assessment of Australia’s tobacco and nicotine policies, saying the country is saddled with “harm and chaos.” Speaking under the theme “The Australian Experience: From Global Leader to Global Failure,” Foukkare outlined how once-successful public health strategies had collapsed under the weight of excessive taxation, poor enforcement, and the rise of organized crime.

    “Australia has become the model of what not to do. By any measure, it’s an absolute failure,” he said. “And believe it or not, our government still claims to have world-leading standards. We’re dealing with an absolute tsunami of illegal nicotine products entering the country. I call it ‘Tobacco Wars.’ It’s actually playing out in real life every day. The illegal nicotine market is now bigger than the next five organized crime categories combined.

    “Through bad policy, we’re actually creating harm,” he said, noting that smoking rates have remained virtually unchanged in the past decade despite mounting taxes and restrictions.

    “We had the most aggressive excise policy any government in the world had undertaken,” Foukkare said, with a legal pack of cigarettes now costing between $45 and $50. “They killed the golden goose, because the consumers said, “Enough is enough. Why would I pay this when there are cheaper options?”

    According to Foukkare, Australia’s extreme excise policies pushed consumers to the black market, eroding legal sales and fueling criminal activity. Organized crime groups, he added, have even begun taking over farms to grow illicit tobacco, while state governments scramble to form task forces.

    “There’s so much threat and intimidation,” he said. “Some store owners are paying $5,000 a month in protection money. Pay or they’ll burn your shop down. One store owner got a handwritten note saying he needed to meet with the [crime] boss. He took the note to the police, the next day, a car drove through the front of the store, and now it’s closed.”

    Foukkare criticized the government for ignoring early warnings about policy failures and dismissing data because it was industry-funded. Now, with estimates suggesting up to 60% of tobacco consumption is illicit, officials are finally acknowledging the scale of the problem. Foukkare also condemned the government’s anti-vaping stance, arguing that public messaging has convinced most Australians that vaping is more dangerous than smoking.

    Despite the creation of new penalties—million-dollar fines, landlord accountability clauses, and police powers to shut down stores—Foukkare said the measures have done little to fix the underlying issue. “We’ve spent a billion dollars and haven’t done anything to reduce smoking or keep people safe,” he said.

  • Indonesia Working Against Illegal Cigarettes

    Indonesia Working Against Illegal Cigarettes

    The Indonesian government is preparing a new regulation to curb the spread of illegal cigarettes, particularly those sold without excise bands, Deputy Minister of Industry Faisol Riza announced today (September 29). The plan will be accompanied by an expansion of Tobacco Products Industry Zones (KIHT) to more regions, an initiative that aims to attract illegal cigarette producers into these zones, encouraging them to operate legally under the tax-paying system.

    Data from the Ministry of Industry shows illegal cigarettes rose from 3% of total cigarette volume in 2019 to 6.9 percent in 2023, with machine-rolled clove cigarettes (SKM) making up the bulk of untaxed products. Riza warned that the illegal trade is hurting the domestic tobacco industry, causing idle machinery, reduced production, layoffs, and a negative impact on workers’ welfare.

    Indonesian smokers’ sensitivity to price has fueled demand for cheaper, untaxed cigarettes, the minister said. “A conducive business climate can only be realized if all parties, including the public, work together to eradicate the circulation of illegal cigarettes,” Riza said. The government emphasized that tackling illegal trade is essential to protecting legal producers and sustaining jobs within the sector.

  • Indonesia Weighs Tobacco Tax Hike Amid Worker, Smuggling Concerns

    Indonesia Weighs Tobacco Tax Hike Amid Worker, Smuggling Concerns

    Earlier this week, Indonesia’s Finance Minister Purbaya Yudhi Sadewa said that any increase in tobacco excise must be paired with safeguards for workers, warning that steep hikes could push the sector into decline without social protection programs. “You can’t kill the industry unless there’s a program to absorb the displaced workforce,” he told reporters, noting the risk of mass layoffs if cigarette excise rates rise too quickly.

    While higher taxes are designed to cut smoking rates and boost state revenues, Purbaya stressed the need for transition planning. He said he would review the condition of East Java’s cigarette industry and study the growing illegal market, which he warned is eroding legitimate businesses. The finance ministry is also investigating counterfeit excise stamps, which Purbaya believes could be costing the state significant revenue.

    Deputy Finance Minister Anggito Abimanyu confirmed that the 2026 excise tariff remains under review. Lawmakers recently agreed to raise the government’s 2025 customs and excise revenue target to Rp336 trillion ($19.7 billion), up from Rp334.3 trillion. Final details of next year’s tobacco tariff will be determined after an evaluation of this year’s performance.

  • Report: Latvia Lost €67M to Illicit Cigarette Trade

    Report: Latvia Lost €67M to Illicit Cigarette Trade

    Latvia lost an estimated €67 million to the illicit cigarette trade in 2024, a 31% increase over the previous year, as reported by KPMG at the National Forum on Smuggling. The study showed that contraband now accounts for 18% of total cigarette consumption in the country, with 340 million units consumed. Belarus remains the main source of smuggled cigarettes according to the report, supplying half of the illicit market, while counterfeit products surged 40% to 140 million units.

    Philip Morris Latvia public affairs head Guntars Grīnvalds warned that simplistic excise tax hikes can exacerbate smuggling rather than increase revenue. He advocated for a differentiated taxation approach: higher duties on traditional cigarettes, but lower rates for less harmful alternatives to encourage switching among adult smokers. The findings underscore the need for balanced excise and regulatory policies, as well as stronger measures against counterfeiting and illegal production, to effectively combat the growing illicit market.

  • Indonesia Looking to Crack Down on Illegal Cigarette Trade

    Indonesia Looking to Crack Down on Illegal Cigarette Trade

    Indonesia’s Finance Minister Purbaya Yudhi Sadewa pledged a crackdown on the country’s illegal cigarette trade, warning that anyone involved—including officials inside Customs or the Finance Ministry—will face consequences. Speaking at a budget briefing in Jakarta today (September 22), he vowed to conduct random checks on distribution channels and ordered e-commerce platforms to block illicit product listings, adding: “Spread the word: wherever illegal cigarettes are being sold, I will come.”

    The announcement comes as Indonesia enforces new 2025 tobacco excise rules. While excise tax rates remain unchanged, the government raised minimum retail prices across categories to deter smuggling and under-the-counter sales. Excise duties range from Rp 1,231 ($0.08) per stick for premium machine-made kretek to Rp 223 ($0.013) per stick for lower-tier hand-rolled kretek, with e-cigarettes taxed up to Rp 6,776 ($4.07) per milliliter. Despite these measures, around 22 billion sticks of illicit cigarettes were sold in 2023, costing the state Rp 15 trillion ($940 million) in lost revenue.

  • Crash Spills Smuggled Cigarettes Across Polish Highway

    Crash Spills Smuggled Cigarettes Across Polish Highway

    Polish police responding to a highway traffic accident found thousands of cigarettes strewn across S61, a key route linking Poland and Lithuania. Investigators found more than 1 million cigarettes in a van that had just crossed the border and stopped in the emergency lane before getting hit and spilling its cargo. The cigarettes were seized for not having Polish tax stamps, and the 36-year-old Lithuanian driver was arrested.

    According to preliminary estimates, the smuggling attempt could have deprived the Polish state budget of over 1.5 million złoty ( $416,000) in unpaid excise duty.

  • Jordan Customs Seizes Smuggled Cigarettes, Vapes, and More

    Jordan Customs Seizes Smuggled Cigarettes, Vapes, and More

    Jordan Customs Department’s Anti-Smuggling Directorate, working with security agencies, announced the seizure of a large haul of contraband tobacco and nicotine products in two separate cases today (September 11). Authorities confiscated 13,100 cartons of smuggled cigarettes, 2,130 e-cigarettes, 13,800 packs of e-liquids and vape juices, 610 kilograms of hookah tobacco, and 8,250 cigars, placing the items under custody pending legal action.

    Officials said the goods pose serious health risks and undermine the national economy by entering the market without meeting Jordanian health and safety standards.

  • NSW’s New Laws Aimed at Curbing Illegal Tobacco Trade

    NSW’s New Laws Aimed at Curbing Illegal Tobacco Trade

    The New South Wales (NSW) Parliament passed sweeping new laws to crack down on the illegal tobacco trade, with offenders now facing some of the harshest penalties in Australia. Under the legislation, those convicted of selling illicit tobacco could face fines of up to A$1.5 million ($1 million), prison sentences of up to seven years, and the closure of their businesses. The measures will work alongside the state’s new tobacco licensing scheme, designed to make it easier to identify and remove rogue operators, and will be enforced by NSW Health’s newly established Centre for Regulation and Enforcement.

    The government said the reforms are aimed at protecting public health and safeguarding legitimate retailers, while disrupting the operations of criminal syndicates profiting from tax evasion, addiction, and youth exposure to tobacco.

  • Thailand Police Seize $2.8M in Illegal E-Cigarettes

    Thailand Police Seize $2.8M in Illegal E-Cigarettes

    Police and excise officials seized more than 559,000 illegal e-cigarettes and related parts during a raid in Wiharn Daeng district, Saraburi, Thailand. The announcement came at a press conference today (September 10), led by Cyber Crime Investigation Bureau Commissioner Pol Lt Gen Trairong Phiewphan, one day after the operation.

    Trairong said cybercrime officers tracked a suspected pickup truck from Bangkok to a warehouse in Moo 4 village, Tambon Bang Lam. Upon inspection, authorities discovered 138,680 disposable INFY vapes, 40,800 disposable Escobar vapes, 374,000 pod heads for INFY devices, and 6,350 INFY vapes. The haul is valued at an estimated 90 million baht ($2.8 million).