ILLEGAL tobacco that was seized at a Dingwall farm recently would have made around 30 million cigarettes, according to British American Tobacco Australia.
As revealed in the Gannawarra Times last Tuesday, the Australian Tax Office, Australian Border Force and Victorian Police uncovered the large crops, which had an estimated excise value of up to $16 million on, March 23.
British American Tobacco Australia has congratulated authorities and said the seizure of 60 acres of crops, which were at various stages of growth, is believed to be the largest on record
A large number of items were seized which are used for drying the tobacco prior to its sale, including five kiln containers containing 24 tonnes of tobacco leaf.
It’s believed authorities acted in response to a tip-off from a community member.
The Australian Tax Office said those involved in the illegal cultivation can expect to the authorities to seek criminal convictions and to work with partner agencies to remove the profit through the application of proceeds of crime or tax assessment legislation.
British American Tobacco Australia spokesperson, Scott McIntyre said currently 14.3 per cent of all tobacco consumed in Australia was illegal.
“There have been a growing number of large scale tobacco crops seized locally in recent years particularly in Victoria,” he said.
“Australia has the most expensive tobacco prices in the world due to a series of large ad hoc excise increases implemented since 2010. This makes selling illegal tobacco extremely lucrative for organised crime syndicates who are now prepared to risk growing illegal tobacco crops locally to supply the black market.
“The illegal tobacco market costs the government and taxpayers $1.42 billion a year in lost revenue which equates to nearly $6 billion over a forward estimates budget period.
Mr McIntyre said there is a concerning link between illegal tobacco and other organised crime activities.
“The government could take further steps including opting for a more stable excise system, boosting investment in the Australian Border Force Tobacco Strike Team and changing relevant legislation to make enforcement easier,” he said.
“Coupled with increasing relevant penalties there would be a much greater deterrent for organised crime.”
Growing tobacco in Australia has been illegal since 2006 with licences subject to strict rules and conditions.
