Federal Member for Bowman, Henry Pike MP, has called out the role of failed tax policy in driving the surge in illicit tobacco crime across the Redlands.
Earlier this week, businesses within the Kos Centre at Capalaba were forced to close to clean up damage caused by the third fire-bombing of the centre’s tobacconist in six months.
“Extortion, fire-bombings and mob turf wars have no place in communities like the Redlands” Mr Pike said.
“Local businesses already under pressure from rising costs are now being forced to look over their shoulders as criminal gangs fight for control of the illegal tobacco trade.”
In one earlier attack, the offender reportedly set himself alight before fleeing the scene the wrong way down Finucane Road and dumping his vehicle in a nearby park.
Mr Pike said the problem goes beyond criminal behaviour and argues it is being fuelled by bad government policy driving ordinary consumers into the black market.
“Over the past decade, the federal tobacco excise has been pushed so high that legal cigarettes can cost more than $50 a packet, while illegal ones sell for around $15 to $25. No prizes for guessing what smokers do in response to this discrepancy,” Mr Pike said.
Australia’s tobacco excise has tripled since 2015, yet the Commonwealth is collecting far less revenue than it used to.
Mr Pike states that this is not because Australians are quitting smoking at record rates, it’s because 40 per cent of all cigarettes sold in Australia are now illegal.
“The tax excise has gone well past the point of effectiveness. It’s not stopping people from smoking and it’s not raising the revenue needed to fund health services. It’s simply enriching criminal gangs,” Mr Pike stated.
The new Crisafulli LNP State Government is already taking strong action to crack down on crime. Since taking office, it has:
- Seized 45 million illicit cigarettes, 350,000 vapes and six tonnes of loose tobacco
- Passed tough new laws to shut down illegal operators on the spot
- Introduced serious penalties for landlords who knowingly allow criminal activity
- Recruited 40 new enforcement officers to strengthen on-the-ground compliance
“These are tough and necessary measures, but enforcement alone won’t fix the problem,” Mr Pike said.
“We need a dual approach, strong enforcement to stop the crime, and smarter policy to reduce the incentives that drive it.”
Mr Pike argues that the only way to eliminate the black market for good is for the Federal Government to make the legal market viable again and that means bringing tobacco excise back to a realistic level.
“If we’re serious about stopping the violence and fire-bombings, the excise must come down. Lowering the rate would increase revenue by bringing people back into the legal market and drying up the black one,” Mr Pike said.
“I’ll keep pushing for stronger enforcement and smarter tax policy so we can keep Redlands businesses safe and stop fuelling this problem in the long term.”
