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4w ago

Illegal Tobacco Trade Costs Australia $6.9 Billion in Revenue, Federal Budget Reveals

The government allocates $157 million to combat the black market, but entrenched organized crime and high taxes complicate enforcement efforts.

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A man lighting a cigarette (Image: AAP/Sam Mooy)

Overview

  • The Australian federal budget has recorded a $6.9 billion shortfall in tobacco excise revenue over five years due to the booming illegal tobacco trade.
  • High excise taxes on legal cigarettes have driven consumers to cheaper black market alternatives, significantly reducing government revenue.
  • The government has announced $157 million in funding over two years to strengthen law enforcement and border control to address the issue.
  • The illegal tobacco trade is linked to organized crime, with reports of violence, arson, and territorial disputes escalating across the country.
  • Analysts warn that the scale and infrastructure of the black market may limit the effectiveness of enforcement efforts, raising concerns about long-term impacts on revenue and public safety.