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Tag: illicits

  • NSW Introduces Harshest-Ever Crackdown on Illicits

    NSW Introduces Harshest-Ever Crackdown on Illicits

    The New South Wales government today (August 6) introduced sweeping new legislation to Parliament aimed at tackling the illegal tobacco and vaping trade, including some of the toughest penalties in Australia. Under the proposed laws, selling tobacco without a license could result in fines of up to A$660,000 ($429,000) for individuals and A$880,000 ($572,000) for corporations.

    Other key measures include:

    • New offenses for commercial possession or sale of illicit tobacco, carrying maximum penalties of over A$1.5 million ($975,000) and seven years’ imprisonment.
    • Closure orders for up to 90 days (short-term) or 12 months (long-term) for premises violating the laws.
    • Offenses for breaching closure orders, including entering or operating from sealed premises.
    • Lease termination powers for landlords and proposed penalties for those knowingly leasing to illegal sellers.
    • New laws against impersonating licensed sellers, resisting product seizure, or attempting to reclaim confiscated goods.

    The crackdown follows the recent rollout of a tobacco licensing scheme, designed to improve regulatory oversight and reduce black market activity.

  • Philippines Eyes Tobacco Tax Changes as Illicits Worsen

    Philippines Eyes Tobacco Tax Changes as Illicits Worsen

    During the Philippines’ Senate Committee on Ways and Means hearing yesterday (May 19), Bureau of Internal Revenue (BIR) assistant commissioner Jethro Sabariaga said cigarettes and heated-tobacco products should be taxed the same, but argued that vape products should be taxed much higher.

    “One vape product is not the same as the consumption of one pack of cigarettes,” Sabariaga said. “The government will be losing a lot as vape is consumed for a longer period of time.” 

    The BIR’s proposal comes as the Senate deliberated proposals to amend the excise tax on tobacco products amid worsening illicit trade. A counterpart measure in the House of Representatives seeks to lower the current tobacco excise tax rate, which increases 5% annually. Others proposed a unitary tax system for vapor products and ad valorem tax on vaping devices.

    During the same hearing, Philip Morris International-Fortune Tobacco Corp. maintained that the government needs to rationalize the tax rates amid ineffectiveness leading to lower government revenues. Instead of the 5% annual increase, PMFTC proposed an odd-even scheme for hiking the tobacco excise taxes: 0% every even-numbered year and 6% every odd-numbered year. PMFTC said such a scheme could boost revenues by up to P120 billion ($2.2 billion) every year.