The Australian Retail Council has reinforced the need to cut tobacco excise as part of broader reforms to tackle illicit tobacco and organised crime.

Responding to the release of a report from the Coalition Taskforce to Tackle Illegal Tobacco this week, Australian Retail Council CEO Chris Rodwell said there is a “clear case” for an excise cut.

“A black market has flourished, organised crime and associated violence have grown, legitimate retailers have been severely hampered and the nation’s tobacco excise revenue has collapsed,” he said.

“Few well-intentioned policy decisions have delivered social and economic consequences this serious.”

Coalition calls for 80% excise cut

The Illicit Tobacco Crisis in Australia report, released by the Coalition Taskforce to Tackle Illegal Tobacco, finds that organised crime has taken almost complete control of Australia’s tobacco market and that current policy settings must be comprehensively overhauled to prevent an entirely black market for tobacco and nicotine products.

The recommendations of the report include:

• Drastically reducing the tobacco excise rate, with a reduction of at least 80% needing to be considered to break the organised crime business model.
• Establishing a highly regulated and licensed framework for the legal sale of vapes, with manufacturing standards and age limits.
• Convening a National Cabinet specifically on illegal tobacco to reset Commonwealth and state cooperation on enforcement, licensing and closure powers.

The report also calls for the establishment of a target to achieve an “Effective Zero” smoking rate, reduced from the current objective of 10%, and the launch of a properly resourced and refreshed education campaign on the health impacts of illegal vaping, smoking, and the health impacts of illegal tobacco;

“This is serious policy work built on evidence,” said Leader of the Opposition Angus Taylor. “The Coalition is stepping-up on illegal tobacco to do the complex policy work to solve this challenge. The Albanese Government must do the same.”

Time for change

Mr Rodwell from the Australian Retail Council says on any measure, the current approach to Australia’s illicit tobacco trade has been a failure.

“We need to set a new path that protects public health, restores control to legitimate and regulated retailers, and wipes organised criminals out of Australia’s tobacco market,” he said.