The Australian Association of Convenience Stores (AACS) reported a historic drop in tobacco sales, raising alarms about the rampant surge of illegal tobacco and vapes in the black market, which could impact government tax revenues.
Recent data from the AACS’s mid-year report showed a decrease in tobacco sales by 19.8% in the recent quarter and 13.7% in the first quarter of the year. Despite these sales contributing roughly $5bn annually to Australia’s economy via excise taxes and GST, projections from the Intergenerational Report predict stagnant tobacco consumption, even with heightened government controls.
Theo Foukkare, AACS’s Chief Executive, emphasised that the surge in the black market for tobacco and vapes is undermining legitimate businesses. He noted the infiltration of 90 million illegal vapes into Australia last year and projected an increase this year. Moreover, one out of every four tobacco products is now illegally sold. He criticised the government’s lack of appropriate regulation and enforcement, labelling it a “national crisis.”
Mr Foukkare urged the government to staunchly regulate the black market, preventing criminal groups from benefiting from illegal vape sales. Survey data from RedBridge found that a vast majority, 81% of Australians, believe nicotine vape products should be regulated akin to alcohol and tobacco. Profits from these illegal sales, according to Foukkare, not only fund other unlawful activities but also disrupt local communities.
Health Minister Mark Butler, revealed plans to intensify national tobacco controls and inhibit non-prescription vape imports. He aims to collaborate with state and territorial entities to halt vape sales in places like convenience stores. He stated, “Australia should re-establish its global leadership in tobacco control.”
However, opposition health spokesperson Anne Ruston critiqued the government’s approach, emphasising the necessity of stringent border enforcement to prevent illegal vape imports. She stated that without proper enforcement, the government’s plan lacks substance.
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