Governments must think like organised crime to defeat organised crime
The author argues that the Australian government is losing the 'tobacco war' to organized crime due to high taxes that incentivize a black market. The piece suggests that the government must adopt business-like strategies and better incentive structures to effectively combat criminal tobacco suppliers.
Why it matters
It critiques current fiscal policy and law enforcement approaches to the black market, suggesting a need for systemic reform.
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Share A A A Six years ago, the Commonwealth collected $16.3 billion in tobacco excise. That figure will have collapsed to $4.1 billion this year, Treasury estimates, and by the end of the decade it’ll be just $2 billion. Meanwhile, investigations of wastewater by the Australian Bureau of Statistics suggest that since 2017 nicotine consumption (including from illegal vapes) has increased by 40 per cent.
Let’s face it: the mafia has won the tobacco wars.
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