| Coalition targets tobacco gangs with massive excise cut |
Senator Dave Sharma ** Mr Sharma pointed to almost 200 tobacco-related arson
attacks and six murders in Victoria linked to the illicit trade.
|
Coalition targets tobacco gangs with massive excise cut
10/09/2026
(See translation in Arabic section)
Sydney-Middle East Times Int'l: The Coalition has proposed a major reduction in tobacco excise as part of a plan to combat Australia’s growing illicit tobacco market and target organised crime groups profiting from illegal tobacco sales.
Shadow Assistant Minister for Citizenship and Multicultural Affairs Mr Sharma said Australia was facing “a multi-billion-dollar illegal tobacco crisis” that was “no longer just a public health issue; it is an organised crime epidemic spilling onto our suburban streets.”
According to Mr Sharma, the impact is being felt across NSW, with incidents including tobacconist firebombings, extortion attempts and drive-by shootings. He said illicit tobacco shops were operating openly in suburban and regional communities, selling untaxed tobacco and unregulated vapes.
“Walk through Western Sydney, the Hunter, or regional town centres across NSW, and the evidence of this crisis is impossible to ignore,” Mr Sharma said.
He said criminal gangs were earning between $4.1 billion and $6.9 billion annually from the illicit tobacco trade, with the proceeds funding other criminal activity.
“These vast sums do not vanish into thin air. They directly fund drug trafficking, scams, violence and money laundering,” he said.
Mr Sharma pointed to almost 200 tobacco-related arson attacks and six murders in Victoria linked to the illicit trade.
“Shops have been firebombed. Businesses have been threatened. Communities have been terrorised,” he said.
The Coalition argues that high tobacco excise rates have contributed to the growth of the black market by creating a large price difference between legal and illegal products.
“We must be clear about how this happened: reckless tax hikes have created an absurd price gap between legal and illegal products,” Mr Sharma said. “When a legitimate packet of 20 cigarettes costs $40 or more due to sky-high government excise, while a black-market packet costs just $15 at a local corner shop, government policy actively creates the profit margin that enriches organised crime.”
Under the Coalition proposal, tobacco excise would be cut by 80 per cent, reducing the tax on a standard packet of 20 cigarettes from around $30 to $6.
“If we want to smash these syndicates, we must destroy their business model by attacking their source of power: their profits,” Mr Sharma said.
The plan also includes a $200 million law-enforcement package targeting organised crime networks involved in the illicit tobacco market. According to Mr Sharma, the policy would be funded by an estimated $8 billion in excise revenue over four years as sales move from the black market to legitimate retailers.
The Coalition is also proposing to legalise, regulate and tax vapes and nicotine pouches for adults.
“This brings these products out of the hands of violent gangland bosses and into a tightly controlled Australian framework with severe penalties for sales to minors,” Mr Sharma said.
Rejecting suggestions the proposal would encourage smoking, Mr Sharma said Labor’s current approach had failed on both public health and community safety.
“The Coalition’s plan will crush the gangs, destroy their black-market business model, and restore safety to NSW communities,” he said. |
