A Melbourne cafe has been destroyed in an arson attack on a neighbouring tobacco shop, leaving newlywed owners Manali Purohit and Ashish Sharma calling for government action to curb the violence linked to illegal tobacco.
The couple’s vegan eatery, And Bodega, on St Georges Road in Fitzroy North, was gutted when the tobacconist was allegedly set alight. Another cafe was also damaged, while the owners were left facing a bill of more than $100,000.
Mr Sharma said the couple had initially welcomed plans for a grocery store to open next door, believing it would complement their business. But they soon became concerned the premises could instead become a tobacco shop.
“We knew pretty early on it may not be a grocery store, it may be like something like a tobacco store,” he said.
Ms Purohit, a pastry chef raised in Mumbai, had also felt uneasy after customers warned that arsonists could target the neighbourhood. More than 150 tobacconist shops across Victoria have been targeted since March 2023.
In late September, Ms Purohit arrived for an early morning baking shift and noticed exposed glass jutting from the neighbouring shop’s front window. A handwritten note was later found plastered to the wall, according to another witness.
The window was smashed again last Thursday. CCTV allegedly showed a car passing the tobacconist before bricks were thrown at the shopfront.
Then, at about 3.45am on Monday, frightened residents contacted emergency services after hearing explosions. Investigators believe at least one offender forced entry to the tobacco shop and started the fire, but no arrests have been made.
Police have said there is nothing to suggest the targeted business was selling illicit tobacco.
“There were these little canisters strewn all across our premise … the severity and the ferociousness of these things … it’s terrorism,” Mr Sharma said.
Calls to cut tobacco excise
The attack came amid a fresh spate of tobacco shop fires in Melbourne, as authorities struggle to contain a problem that has persisted for years.
Mr Sharma has joined industry experts and economists calling for Australia’s tobacco excise to be reduced, arguing that high taxes are fuelling demand for cheap illegal cigarettes.
“Why let a black market, why let these types of actors form any sort of foothold in our society?” he said.
“It’s real stubbornness from politicians … somebody needs to just make the easy call and be like we’re just abolishing this tax and we’re not letting any new tobacco stores open.”
The Australian Bureau of Statistics estimates that about 80 per cent of tobacco consumed in 2025 was illegal, compared with 12 per cent in 2017. Over the same period, tobacco excise more than tripled and generated $7.4 billion in 2024-25.
The federal government has continued to prioritise law enforcement to tackle the illicit trade. Assistant Customs Minister Julian Hill recently said authorities could not overstate the importance of shutting down retail premises openly selling illegal products in high streets.
The Coalition has pledged to cut tobacco excise by 80 per cent if elected, reducing the average price of cigarettes from $40-$50 to about $16-$26. One Nation has proposed a 75 per cent reduction and a five-year freeze on indexation.
Deakin University criminologist James Martin said reducing the excise was the only credible way to tackle Australia’s estimated $8.5 billion nicotine black market.
“As long as that demand (for affordable nicotine) is there, there will be criminal suppliers who will be prepared to capitalise and take the risks to supply that demand,” Dr Martin said.
University of Sydney public health professor Becky Freeman warned that cutting the excise could lead to a “race to the bottom with criminals” and an increase in smoking rates. She said cigarette packs manufactured in parts of south-east Asia for import into Australia could cost as little as one Australian dollar to produce.
Earlier this month, Victorian police announced the closure of 61 shops allegedly linked to organised crime and selling illicit tobacco, along with seizures of cigarettes, vape tobacco and cash.
Professor Freeman said Victorian authorities had been too slow to act. A state inquiry into tobacco and vaping controls found that illicit tobacco-linked arson could put legitimate businesses at risk, while governments had struggled to enforce laws because of limited resources, safety concerns and legislative shortcomings.
Its final report, released in August 2024, found small and medium-sized businesses faced increased risks of violence from the illicit tobacco trade.
