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INDUSTRY NEWS
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Long-awaited Illicit Tobacco Report released At last, the hard work of many has paid off. After four years, 11 months and 12 days the Parliamentary Joint Committee on Law Enforcement has now released their final report into Illicit Tobacco. This process all commenced with the MGA Board of Directors engagement with the then Chair of the Black Economy Task Force, Michael Andrew AO joining an MGA Board meeting at which the subject of Illicit Tobacco was raised more than five years ago. Michael understood immediately not only the impact of illicit tobacco on retailers legal tobacco sales and profits but the Government’s ability to collect hundreds of millions of dollars in Excise Tax. Sadly, Michael passed away last year. The Black Economy Task Force Chairman is now former ACCC Deputy Chair, Michael Schaper. This is only the start and will hopefully stop illicit tobacco from eroding the sales and profits of legitimate tobacco sales that we have seen with our members around Australia. While handing down the report, the Committee’s Chairman, Craig Kelly MP brought in a bag of chop-chop and a branded Marlboro pack that he had delivered to his Parliamentary office (easily making its way through Parliamentary security) - photo The Committee report included a number of recommendations which are summarised below and cover off most of the policy suggestions we have been sharing with Government over recent months. 1. All responsibility for illicit tobacco removed from the Department of Health and transferred to the Department of Home Affairs. 2. Development of a National Illicit Tobacco strategy in conjunction with mga.asn.au | February 2021 | Edition 1
3. State and territory police forces, as a co-ordinated, national law enforcement-led response, which includes:
» alignment of state and territory
legislation with enhanced Federal offences and penalties;
» introduction of on the spot fines for retail enforcement
» the Federal Government providing adequate resources for the development and implementation of this strategy
» a nationally consistent licencing regime for tobacco products, including tobacco product manufacturing supplies and equipment.
» .clear roles and responsibilities
of all relevant stakeholders and agencies;
» specific actions and strategies to be implemented;
» strategies for improved
information and data collection and sharing; and
» illegal tobacco data published
as a subset of the National Drug Strategy
4. Develop a strategy for the use of proceeds of crime to fund law enforcement operations of the Commonwealth and states and territories targeting illicit tobacco. 5. The Australian Criminal Intelligence Commission include data and analysis of illicit tobacco in future iterations of the Illicit Drug Data Report.
Craig Kelly MP
6. The Australian Taxation Office continues with its tobacco tax gap project on a permanent basis and, where appropriate, uses all available external information to assist in developing its understanding of the scale of the illicit tobacco market in Australia. 7. The committee recommends the Department of Home Affairs work in collaboration with the relevant law enforcement agencies to provide definitive advice to the Australian Government on the implementation of a track and trace regime in Australia, and whether Australia should become a signatory to the World Health Organisation Protocol to Eliminate Illicit Trade in Tobacco Products, provided it takes into account Australia’s unique circumstances. On behalf of all members around Australia, MGA sincerely thanks the Member for Hughes in NSW, who is the Federal Government Illicit Tobacco Committee Chairman, Hon Craig Kelly MP for working very hard to drive for a result to stamp out illicit tobacco in Australia. This is a win for retailers and taxpayers alike!
