Selling cigarettes at an excessively low price will now be treated as direct evidence of illegal tobacco sales, and lawsuits will be filed against the owners of the concerned business establishments. Under a new draft law introduced in the Australian parliament, a major change has been proposed in the relevant customs policy, which will give law enforcement agencies more effective powers to seize illegal tobacco and file charges.
According to the previous customs law, legal action could only be taken after confirming proof that any cigarettes or tobacco products were knowingly imported illegally. However, under the new reforms, selling cigarettes below the combined price of government-determined customs duty and GST, using different or unauthorized packaging, or hiding them in stores instead of displaying them will be considered sufficient grounds for authorities to file a case.
A spokesperson for Assistant Minister for Customs Julian Hill stated that the maximum punishment for the crime of selling illegal tobacco has been increased to 10 years of imprisonment. In this context, Julian Hill told ABC Radio on Thursday that these updates or timely changes will serve as a major tool to help state and territory police forces, along with the Border Force, take strict action against dishonest syndicates. He said, "This is a global problem and Australia is no exception. Exploiting a huge surplus of cheap tobacco produced at a cost of less than $1 per pack, international and organized crime syndicates are expanding illegal trade across our borders."
Alongside these measures recently introduced in the federal parliament, the opposition coalition has promised to reduce tobacco customs duty by 80 percent to control the illegal cigarette market. Echoing a similar tone, the One Nation Party has also proposed reducing customs duty by 75 percent, stating that this will close the opportunity for criminal syndicates to make huge profits.
According to estimates by the Australian Bureau of Statistics, while the illegal tobacco market was only 12 percent in 2017, it has leaped to nearly 80 percent of total consumed tobacco by 2025. On the other hand, government tobacco customs duties have increased more than threefold during the same period.
