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Tag: organized crime

  • Australia’s Coalition Looking to Stop Illicit Tobacco, Gangs 

    Australia’s Coalition Looking to Stop Illicit Tobacco, Gangs 

    Australia’s opposition Coalition has unveiled a plan to tackle the country’s illicit tobacco and vape trade by cutting tobacco excise by 80% and committing A$200 million ($140 million) to a nationwide law-enforcement crackdown. The Coalition estimates organized crime groups make A$4.1 billion to A$6.9 billion ($2.9 billion to $4.8 billion) annually from illicit tobacco, with proceeds funding drug trafficking, scams, money laundering, and violence. Opposition Leader Angus Taylor said the plan would attack criminal gangs by narrowing the price gap between legal and illegal cigarettes while strengthening efforts to shut illegal retailers, intercept shipments, and trace criminal finances. 

    The proposal would cut excise on a standard 20-pack from about A$30 to just over A$6 ($21 to $4.20) and legalize, regulate, and tax vapes and nicotine pouches for adults. The Coalition says illicit tobacco now accounts for about 80% of consumption and 95.7% of e-cigarettes sold are illegal, arguing current restrictions have pushed consumers toward criminal suppliers. It also proposes A$60 million ($42 million) for public education and says Parliamentary Budget Office modelling indicates the package could improve the budget balance by about A$8 billion ($5.6 billion) over four years and more than A$20 billion ($14 billion) over a decade. 

  • Australian Party Calls for 80% Tobacco Tax Cut

    Australian Party Calls for 80% Tobacco Tax Cut

    Australia’s federal opposition is calling for tobacco excise to be cut by up to 80% to undermine organized crime networks that it says now control much of the country’s tobacco market. A coalition task force report released today (Aug. 26) said as much as 80% of tobacco consumed in 2025 was illicit, up from 12% in 2017.

    Sen. Richard Colbeck and Monash MP Mary Aldred said high tobacco taxes have helped fuel an underground market linked to firebombings and arson attacks. “Criminals had taken ‘almost complete control of Australia’s tobacco market,’” the report said. Colbeck said the issue is no longer simply about smoking but “who controls a billion-dollar market in our economy: the Australian government or organized crime?”

    The report said tobacco excise revenue fell from about A$16 billion ($11.2 billion) in 2019-20 to A$8 billion ($5.6 billion) in 2024-25 and is projected to fall to A$4 billion ($2.8 billion) in 2025-26 and A$2 billion ($1.4 billion) by 2029-30. One Nation has proposed a 75% cut, while the Nationals and NSW Premier Chris Minns have also backed lower taxes. The Albanese government has opposed reducing the excise.

  • Authorities Seize $7M in Illegal Tobacco, Vapes in Tasmania

    Authorities Seize $7M in Illegal Tobacco, Vapes in Tasmania

    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.

  • Australia’s ‘Tobacco Wars’ See 10 Businesses Set Ablaze

    Australia’s ‘Tobacco Wars’ See 10 Businesses Set Ablaze

    Melbourne’s ongoing “tobacco wars” escalated today (July 6) after a suspected ram raid and arson attack destroyed a tobacco shop in Abbotsford and damaged about 10 neighboring businesses. Fire Rescue Victoria deployed 80 firefighters and 25 trucks after crews arrived to find the building fully engulfed in flames, bringing the fire under control by 6 a.m. Victoria Police said unknown offenders drove a vehicle into the shop before setting it alight and fleeing. No injuries were reported, but a crime scene has been established, and an investigation is underway, while road and tram closures disrupted traffic in the area.

  • 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.

  • 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.

  • Imperial Backs UK’s Push to Fight Organized Crime

    Imperial Backs UK’s Push to Fight Organized Crime

    Imperial Brands backs new Government crackdown on illicit trade to protect honest retailers

    Imperial Brands has welcomed the UK Government’s new £30m High Street organised crime unit[1], designed to tackle illicit trade and support law-abiding retailers across the UK.

    The move follows growing concern around the scale of criminal activity operating through some high street outlets, with illegal products undercutting legitimate businesses and distorting fair competition amongst retailers.

    Under the plans, offending premises will face increased enforcement action, including raids, closures and asset seizures, with additional funding provided to Trading Standards teams.

    Imperial Brands believes this step will help level the playing field for responsible retailers who operate within the law and serve their local communities.

    James Hall, Anti-Illicit Trade Manager, Imperial Brands, said:

    “Honest retailers are being undermined every day by illegal operators selling illicit and unregulated products.

    “Stronger enforcement is essential to protect those doing the right thing and to restore a fair playing field across the high street.

    “We welcome this action and will continue working with retailers and authorities to help tackle illicit trade.”

    He continued: “As a business committed to the highest possible standards in manufacture and retail practice, we have always stood with ethical retailers who do the right thing when it comes to sourcing and selling tobacco and nicotine products.”

    Illicit tobacco and nicotine products are increasingly being sold through a range of outlets, including some convenience stores, vape shops and other high street premises.

    This impacts not only customers, suppliers and government revenues but also the viability of legitimate local retailers, many of whom are already operating in a challenging economic environment.

    Imperial Brands continues to work closely with Trading Standards, law enforcement agencies and retailers to raise awareness, support compliance and help identify illegal activity.

    The company says sustained enforcement, combined with retailer education and collaboration, will be key to tackling the issue long term and protecting responsible businesses. As illicit trade becomes increasingly organised and sophisticated, robust enforcement and meaningful penalties are essential to protect legitimate retailers and local communities.

    Imperial Brands has long called for stronger enforcement action, tougher penalties, and greater support for Trading Standards to help tackle illicit trade and protect responsible retailers.

    Imperial Brands strongly encourage retailers to report any potential illicit trade activity in their area to our sales teams, who can then report it on our dedicated trade platform. Alternatively, retailers can contact us directly through email suspectit.reportit@uk.imptob.com or our anti-illicit trade hotline on 0800 049 5992. 

    [1] https://www.bbc.co.uk/news/articles/ce3pzwx449no

  • Aussies Seize Huge Illicit Haul in Retailer Raids

    Aussies Seize Huge Illicit Haul in Retailer Raids

    Authorities in Canberra, Australia, seized more than 455,000 illicit cigarettes, along with 26 kg of loose-leaf tobacco, 6,000 cigars, more than 1,600 vapes, and about $27,000 in cash following coordinated raids on six retail outlets. The operation, led by the Australian Capital Territory (ACT) government and Australian Border Force with support from ACT Policing, also identified six people of interest linked to the illicit tobacco trade. The total seizure could be worth as much as A$580,000 ($418,000).

    Officials said the enforcement action reflects growing concern about the scale of Australia’s black market, estimated at roughly A$10 billion ($7.2 billion), and its links to organized crime. ACT Health Minister Rachel Stephen-Smith said the impact on communities and legitimate retailers, while police highlighted the role of asset seizures in disrupting illegal activity.

  • Australian Banks Flag 300 Suspicious Illicit Tobacco Cases

    Australian Banks Flag 300 Suspicious Illicit Tobacco Cases

    Australia’s major banks have ramped up efforts to combat illicit tobacco-linked money laundering, filing hundreds of suspicious activity reports and forcing over 1,000 customers out following regulatory pressure from AUSTRAC, according to the Australian Broadcasting Company. According to the article, the illegal tobacco market, which is estimated at up to $6.9 billion and as much as 60% of total sales, is increasingly tied to organized crime, prompting closer scrutiny of tobacco retailers and financial transactions.

    Authorities say enhanced intelligence-sharing between banks and law enforcement is yielding results, including large seizures, as part of a broader push to disrupt criminal networks profiting from the trade. Since calling for a crackdown in November, AUSTRAC received more than 300 suspicious matter reports from banks involving illicit tobacco and made more than 70 referrals to law enforcement.

  • Extent of Australia’s Illicit Tobacco Crisis Coming to Light

    Extent of Australia’s Illicit Tobacco Crisis Coming to Light

    Australia’s illicit tobacco trade is believed to be nearing double the size of the legal market, with excessive excise rates driving a surge in smuggled cigarettes, illicit tobacco and e-cigarette commissioner Amber Shuhyta warned. She told the Senate that estimates of black-market products may be approaching 65% of all tobacco sold, fueled by retail cigarette prices approaching A$50 ($33) a pack. Smuggled packs sell for about A$15 ($9.90), pulling revenue away from legitimate retailers and the federal budget.

    Legal tobacco sales are collapsing, she said. Supplier Metcash reported a 35% drop in sales over the six months to October, while Australia’s tobacco tax take has fallen from 0.8% of national income to below 0.3% in five years—creating a A$69 billion ($45.5 billion) budget shortfall.

    Meanwhile, organized crime groups competing for control of the illegal tobacco and vaping market have been linked to murders, extortion, and hundreds of fire bombings nationwide. Border Force Commissioner Gavan Reynolds said officers seized more than 2.5 billion cigarettes last financial year and intercepted 439 tons of loose tobacco, worth an estimated A$4.4 billion ($2.9 billion) in evaded duty. He said enforcement now targets the supply chain “before the border, at the border, and post-border.”