Illicit tobacco trade costs Australia an estimated A$3 billion in lost tax revenue. Photo credit: ABF
The Australian Border Force (ABF) will be receiving A$188.5 million extra funding to combat the country’s A$3 billion illicit tobacco trade.
Treasurer Jim Chalmers said ABF would be given extra funding over the next four years and would lead the coordinated efforts by commonwealth, state, and territory agencies to obstruct, discourage, and terminate the sale of cigarettes that have been illegally imported.
Additionally, the government will fund research into using artificial intelligence to sieze and destroy illicit tobacco.
Chalmers stated that the funds were intended to discourage the use and distribution of illegal tobacco products throughout Australia and send a strong message to criminals that their actions constituted a "serious tax crime."
Michael Outram, ABF commissioner, stated that the agency was committed to upholding its strict position on illicit tobacco. "This funding will enhance and modernize our ability to stop illicit tobacco at the border and before it ever reaches our shores, air, or seaports," he said. "We know illicit tobacco trade is systematically tied to serious and organized criminal groups, and we will work hand in hand with domestic and international partners to disrupt their activities."
In November, ABF announced that during the past financial year it recorded over 120,000 detections, which led to the confiscation of 1.7 billion illicit cigarettes and 867 tons of loose leaf, or "chop chop" tobacco.