Victorian Minister Enver Erdogan recently acknowledged a link between high federal tobacco taxes and the rise in illicit tobacco and organised crime.
Speaking on the Federal Government’s tobacco excise, Minister Erdogan said “It’s clearly led to the creation of this illegal market. Tobacco is an addiction, and the illegal product is a lot cheaper.”
The acknowledgement was welcomed by the Australian Association of Convenience Stores, with Theo Foukkare, CEO of AACS, saying the Minister’s remarks highlight the need for a national strategy to combat illegal tobacco and review the current tax approach.
“Minister Erdogan’s comments underscore what AACS has long argued: sky-high tobacco taxes have fuelled a dangerous underground market that’s putting legitimate retailers at risk and given more dangerous power to criminal networks.
Foukkare said Victoria’s tobacco licensing scheme, due to commence later this year, is a positive step but limited without federal support.
“As Minister Erdogan rightly pointed out, the underlying cause of the conflict remains the price of legal tobacco, driven by federal excise policies that no longer encourage adult smokers to quit smoking and instead send them unknowingly into this dangerous black market.”
He also noted that with illegal cigarettes selling for as little as $10 a pack, the only effective strategy to reduce the black market is to review tobacco excise and encourage smokers to return to the legal market.
Foukkare praised the Victorian Government’s decision to reduce the cost of retail tobacco licences following industry feedback.
“Minister Erdogan has shown strong leadership in recognising the concerns of our retail members and ensure the licensing scheme is fair and effective.
“It’s now time for the Albanese Government to empower the states and territories, with a national approach to tackling illicit tobacco and the widespread black market it operates in,” Foukkare said.
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i am very surprised and actually shocked that there is no mention here of legalizing regulated vapes.
why???? This is also a very large part of the elicit market and should be an absolute priority given that these black market vapes are so potent and poisonous to our Kids. The difference between regulated Vapes and Black market products is unbelievably massive…….. where most black market products have around 30 to 40 % nicotine in them. Regulated are maximum 5%. Why are we not actioning this Priority??????