The black market for cigarettes in Australia has indeed grown significantly, resulting in lost revenue for the government. Approximately 14% of the total tobacco consumed in Australia is part of the black market, which amounts to about 2.4 million kilograms per year. This underground trade involves illegal and counterfeit cigarettes, often sold openly in convenience stores. These illicit products can look legitimate, complete with packaging and health warnings, but they are significantly cheaper than legally taxed cigarettes. The tax on a packet of 20 cigarettes alone is $26, making legal cigarettes more expensive. As a result, many consumers turn to the black market, where prices are lower. The Australian Government has implemented laws and measures to combat this issue, with penalties of up to 10 years imprisonment and heavy fines for those involved in the illicit tobacco trade. However, the challenge persists, and the government continues to grapple with this lucrative black market.
Sources:
www.abc.net.au/news/2024-05-30/cigarettes-flood-black-market-costing-billions-in-lost-revenue/103869440
www.abc.net.au/news/2024-07-21/cigarette-taxes-fueling-black-market-tobacco-wars/104115126
www.health.gov.au/topics/smoking-vaping-and-tobacco/about-smoking/laws-in-australia
bing.com/search?q=Australian+government+tobacco+black+market
www.vice.com/en/article/yvjnxx/australias-illicit-tobacco-trade-is-booming-thanks-to-rising-cigarette-prices