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ILLUSTRATING THE MAGNITUDE OF ILLICIT TOBACCO The extent of the global illicit tobacco crisis has been showcased in a report from the UK, says Imperial Brands Australasia, which reveals cigarettes and tobacco are the most heavily reported counterfeit goods across the country. The picture is even “far bleaker” in Australia. TOBACCO The UK’s ‘Intellectual Property Office Crime and Enforcement’ report suggests the supply of illicit tobacco in the UK costs the country around 2.5 billion pounds each year. According to the report, nine per cent of cigarettes and 32 per cent of roll your own tobacco were smuggled into the UK in 2018 and primarily sold at “ordinary shops”. The report also found around 50 per cent of Crime Stoppers reports were for tobacco and cigarettes, with products seized identifying asbestos and rat droppings among key elements in the illicit products. The average cost for a pack of cigarettes in the UK is around 12 pounds, with an estimated 80 per cent of the cost now directed to government through a tobacco tax escalator. While a huge problem in the UK, says Imperial Brands Australasia, in Australia the picture is “far bleaker”, with illicit tobacco consumption rising to 20.7 per cent in 2019, meaning one in five cigarettes consumed was an illicit product. The recent KPMG Illicit Tobacco Consumption in Australia report found a significant increase in 2019 from the 2018 figure of 14.1 per cent. “It is clear excise increases contribute to legal tobacco products being too costly for some consumers, who may then be pushed to cheaper, inferior, illicit products,” Imperial Brands Australasia said. “While it is difficult to determine at this stage if further excise increases will be applied in future, more needs to be done to curb the illicit trade.” Imperial Brands Australasia believes more needs to be done to address retail enforcement at state and federal level, with resources of the Illicit Tobacco Task Force primarily focused on large scale operations at the border. “We are calling on all levels of government to improve funding and resources to identify and dismantle smaller operators who are pushing legitimate retailers out of business and ultimately funding criminal syndicates, some with links to terrorist groups,” Imperial Brands Australasia Head of Corporate and Legal Affairs Kirsten Daggar-Nickson said. “The illicit tobacco consumption in this country will only continue to grow unless far more is done in this space to address what has become a massive issue in Australia.” NOV/DEC, 2020 CONVENIENCE WORLD