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‘Ruthless’: Illegal cigarettes and vapes fuelling violent gang wars, industry blames high taxes

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Summary

Illegal cigarettes and vapes have become increasingly popular due to high taxes in Australia, leading to a surge in black market activity. This activity has caused an increase in violence between gangs and has been linked to arson and gang murders. The Australian Association of Convenience Stores (AACS) has warned the government of this issue for years and has called for a regulated retail model for the sale of vaping products, and other measures in order to combat the illegal tobacco and vaping black market. The AACS has also called for a uniform national licensing scheme and a national illegal tobacco strategy. The tax gap triggered by illegal tobacco manufacturers has climbed to a record $2.3 billion, and is expected to climb to $3 billion in the next financial year. A Senate inquiry into new laws designed to combat legal tobacco use in Australia has been launched.

Q&As

What measures has the Australian Association of Convenience Stores requested to combat the illegal tobacco and vaping black market?
The Australian Association of Convenience Stores has requested that the government consider dropping plans to increase the tobacco excise in 2024 and 2025, introducing a regulated retail model for the sale of vaping products, and implementing the recommendations of a 2020 joint parliamentary committee report into illicit tobacco.

What warnings has the Australian Association of Convenience Stores been issuing to successive governments regarding the illegal tobacco and vaping black market?
The Australian Association of Convenience Stores has been warning successive governments for several years that “tax losses, street violence and increased gang activity would follow as a direct result” of state and federal policies.

How has the illegal tobacco and vaping black market affected Victoria and Queensland?
Victoria and Queensland currently have no licensing requirements to be a tobacco retailer, although Queensland is introducing a licensing system starting October 2024. Illegal operators are setting up stores and selling illegal tobacco and vapes to anyone who will buy them, including children.

How has the illegal tobacco and vaping black market impacted Australian police resources?
The illegal tobacco and vaping black market has taken up more of police resources, which are already limited.

What does the Australian Taxation Office estimate the tax gap triggered by illegal tobacco manufacturers to be?
The Australian Taxation Office estimates the tax gap triggered by illegal tobacco manufacturers to be $2.3 billion in October, which could climb up to $3 billion within the next financial year.

AI Comments

👍 This article provides an interesting insight into the illegal tobacco and vaping industry in Australia and highlights the need for state and federal governments to take more action in order to prevent the continuation of this lucrative black market.

👎 This article fails to provide any concrete solutions to the problem of the illegal tobacco and vaping industry, leaving readers with no real way to combat this growing problem.

AI Discussion

Me: It's about illegal cigarettes and vapes fueling violent gang wars, and how the industry blames high taxes. It's been suggested that the increased taxes on cigarettes and vapes have led to an increase in illegal activity, and the industry has been warning the government about the consequences of high taxes for years. The article also talks about how the black market for cigarettes and vapes is estimated to be worth around $1.5 billion a year, and how the government is not doing enough to regulate the industry or crack down on the illegal activity.

Friend: Wow, it sounds like this is a huge problem! It's really concerning that the government has ignored the industry's warnings for so long. What do you think the implications of this could be?

Me: Well, it could lead to an increase in organized crime and gang violence due to the lucrative nature of the black market. It could also lead to an increase in the number of underage smokers and vapers, as the illegal tobacco and vape products are often sold without any restrictions. The government needs to take action to regulate the industry and crack down on illegal activity in order to protect public health and safety.

Action items

Contact your local representatives to voice your concerns about the illegal tobacco and vaping black markets and the lack of enforcement and weak fines.
Research the 2020 joint parliamentary committee report into illicit tobacco and consider ways to implement its recommendations.
Educate yourself and others on the dangers of illegal tobacco and vaping products and the potential consequences of purchasing them.

Technical terms

Arsonists: People who deliberately set fire to property.
Turf War: A conflict between two or more groups over control of a particular area.
Excise: A tax imposed on certain goods produced or sold within a country.
Standover Tactics: Intimidation or coercion tactics used to gain control or compliance.
Tax Gap: The difference between the amount of tax that should be paid and the amount that is actually paid.
Graphic Warnings: Images or text on a product that warn of the potential risks associated with its use.
Non-Prescription Vapes: Electronic cigarettes that do not require a prescription to purchase.
Disposable Vapes: Electronic cigarettes that are designed to be used once and then discarded.