INDUSTRY NEWS
41
NATIONAL QUEENSLAND
Illicit Tobacco - Queensland George Kovits and Jos de Bruin from MGA, together with other industry organisations, met with Qld Minister for Police the Hon. Mark Ryan MP on the 10th August 2021. The purpose of this meeting was to discuss the scale of illicit tobacco across Queensland and the significant impact on the viability of Qld Small Businesses who stock and sell legitimate tobacco products in a strictly regulated environment.
loose tobacco at less than half the price of their legal alternatives.
MGA sought immediate assistance from Minister Ryan despite this issue being of federal jurisdiction. Discussions included what could be done to eradicate this illegal sale of tobacco and what are the actions to this end. It now accounts for greater than 20% of the Australian market.
This is having a major impact on Queensland small businesses, who are now just finding their feet again in a post COVID environment. Small retailers lose cigarette sales and the sale of other items adult smokers usually buy when in their shops. The group offered to work closely and collaboratively with Qld Government and Police to help eliminate smuggled, counterfeit, and illicit tobacco products.
A low-cost tobacco licence could be introduced as a possible solution. This could become a control and reporting mechanism as well as provide a response to rogue traders across the state—heavy fines for tobacco sellers who don’t have a tobacco licence. The absence of a dedicated licensing framework results in an increased illicit tobacco presence across the state, led by emboldened criminals who are willing to take the risks that regulatory gaps expose. At a minimum cost to the legitimate retailer, such a scheme would ensure due process is undertaken on compliance to regulation and central database storage of compliant and non-complying outlets is maintained whilst acting as an effective deterrent for criminals.
The past 24 months have witnessed an explosion in illicit tobacco sales. The presence of illicit tobacco retailers in nearby proximity to legitimate tobacco retailers means tens of thousands of dollars a week in lost sales for retailers.
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The trade-off for compliant retailers of additional red tape and minimal cost would be stronger enforcement of illegal trade activity. MGA will continue to liaise with the Qld Government to address this serious issue
Shopfronts who are dealing in illicit tobacco can offer cigarettes and
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