Legal cigarette sales in Queensland rose sharply after a crackdown on the black market, with purchases increasing by 55 per cent in the first month of new enforcement laws and remaining at least 40 per cent above previous levels for the following six months.
The figures, supplied by major retailers to the Illicit Tobacco and E-cigarette Commissioner, contrast with a largely flat national market over the same period. Calls to Quitline in Queensland also more than doubled in the days after major enforcement operations.
The data is being used by the federal Government to support its decision to target illegal tobacco sales rather than substantially reduce tobacco excise.
Assistant Minister for Customs Julian Hill said the figures showed the importance of closing shops openly selling illicit products. “We can not overstate the emphasis on shutting down retail premises that are blatantly selling illegal products in high streets,” he said.
The Commonwealth cannot close illegal shops itself, but state authorities can. Mr Hill said it was vital that state governments considered the evidence from Queensland.
Queensland Health has issued more than 300 closure orders since November last year, contributing to the closure of more than 1,000 illicit tobacco shops nationwide. The state is also using licensing rules, penalties for landlords and additional street-level enforcement to target illegal retailers.
Mr Hill said the increase in Quitline calls suggested the crackdown was encouraging some smokers to stop. “This is a really positive byproduct of strong enforcement at the retail level,” he said.
“We know that most Australians who smoke want to quit. It’s a powerful addiction.”
The Coalition has rejected the Government’s approach and has promised to cut tobacco excise by 80 per cent if elected. The policy would reduce the average price of cigarettes from roughly $40 to $50 to about $16 to $26, according to the opposition.
Opposition Leader Angus Taylor has argued that a major tax cut would remove the black market’s price advantage. In September, he described the illicit trade as “economic terrorism” and said the plan would target criminal gangs by reducing their customers and profits.
One Nation has proposed cutting tobacco excise by 75 per cent and freezing indexation for five years. NSW Labor Premier Chris Minns also backed an excise reduction last month.
Mr Hill criticised the opposition proposals, saying illicit products would remain cheaper even if tobacco excise were removed. “They (the coalition) are in some crazy bidding war with One Nation about this,” he said. “They will be paying people to smoke next week.”
