The Australian Association of Convenience Stores (AACS) has welcomed the NSW Legislative Council’s final report into the illegal tobacco trade, which calls for an immediate reduction to the excise rate to 2019 levels.
The report found that the increasing tobacco excise has been a major factor in the “dramatic expansion” of Australia’s tobacco black market in Australia and calls on the NSW Government to ask its Commonwealth counterpart to act now.
AACS CEO Theo Foukkare said the recommendations from the NSW Legislative Council should not go ignored.
“Every day the chorus of calls for a real solution to the illicit tobacco crisis grows louder but the Albanese Government is stubbornly sticking their fingers in their ears and pretending this isn’t the right move,” said Mr Foukkare.
“This report spells it out in black and white: the tobacco black market is fuelling organised crime, murder and arson – and the Federal Government needs to take clear and direct responsibility for reducing this illicit trade.
“The inquiry has also found that there is no clear evidence that enforcement and regulation alone will end the black market – the answer lies in excise.”
The report recommends that after an immediate reduction, the Government should look into the short and long term impacts of a lowered excise, and determine the optimal rate that will protect public health objectives while also taking the profit out of the illicit market.
It also recommends asking the Federal Government to review the restrictions on the sale of vapes, and whether there is a correlation between the restrictions and the growth of the black market.
“AACS welcomes the recognition that the black market crisis is adversely impacting legal tobacco retailers, reducing their business revenue and increasing their insurance premiums.
“Time and time again, the Federal Government is refusing to come to the table, leaving state governments and small businesses stuck paying the black market bill, said Mr Foukarre.
“It’s time for the Federal Government to admit it has got it fatally wrong on tobacco excise. I call on the NSW Government to adopt the recommendations of the Upper House report, and step up the pressure on Federal Labor to put an end to this chaos once and for all.”
