September 7, 2009 - Smuggling of illegal cigarettes has hit an all-time high as the Federal Government considers introducing heavier taxes on tobacco products. International flight crews bringing illegal cigarettes through Sydney Airport account for part of a major spike in Australia's tobacco black market.
Desperate attempts to avoid high tax rates are leading to unregulated tobacco products – often containing contaminates such as rat droppings and metal shavings – being sold under-the-counter at general stores.
For years, the major cigarette companies have regularly tried to block efforts to raise cigarette taxes or import fees by claiming that they will spark massive increases in cigarette smuggling and black markets.
(THE BIG CIGARETTE COMPANIES AND CIGARETTE SMUGGLING)
Figures obtained by The Daily Telegraph revealed customs detected 11 shipments of illicit tobacco products comprising 65 tonnes of leaf and 22 million cigarettes during the first three months of this year – an attempted tax evasion of more than $27 million. That was already more than half the $50 million worth of possible tax evasion from seizures in all of 2008.
Customs national investigations manager Richard Janeczko said smugglers were going to extreme lengths. "Anything from airline crews bringing them in, people trying to order them in on the internet, or full container loads disguised as things like pretzels," he said. "But the big smuggling is done by full container load – you're talking $4-$6 million dollars in revenue foregone in every one that's gone through."
In July, Customs arrested four men over an attempt to smuggle more than 4.8 tonnes of tobacco into Australia from Lebanon concealed within plastic tubs.
"Most of the illegal stuff is made in unregulated factories," Mr Janeczko said. "So you can't be sure exactly what's in them."
Earlier this month a report by the National Preventative Health Taskforce called for higher taxes on tobacco products. Rudd government is widely expected to announce a sharp increase in taxes on cigarettes following the Preventative Health Task Force's final submission to Health Minister Nicola Roxon this week. There has been no increase in the tax for a decade.
The price of a pack of 30 cigarettes would jump to $20 within three years if the Government adopts the plan.
Reference: Illegal cigarettes being smuggled into Australia, HeraldSun.com.au, 9/7/2009.
Australia related: Australia - illicit tobacco, do what's right increase the tobacco tax..; Australia - illegal cigarettes readily available...
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Chair of the National Preventative Health Task Force, Rob Moodie said the preventative health community had been waiting for more than 20 years for such an agency, but it would need to be independent and well-funded to make a difference. Professor Moodie said that while he did not think Ms Roxon's comments were out of step with the taskforce's recommendations, regulation and higher taxes would have to be an important part of the strategy.





September 4, 2009 - 





faces charges that it violated customs tax rules by understating the prices of imported cigarettes, a Thai police official said on Thursday, September 3rd.
September 3, 2009 In 2001 Canada became the first country to introduce pictorial warnings warnings on tobacco packages. Now approximately nine years later Health Canada is in the process of revising these health warnings. 
Physicians for a Smoke-Free Canada: 


From Matt Myers, Campaign for Tobacco Free Kids - Connecticut's leaders have taken action that will improve the health of Connecticut residents for generations to come and continue the state's leadership in the fight against tobacco use, the No. 1 cause of preventable death in the United States.


The Australian Medical Association (AMA) says the report, delivered on Tuesday to federal Health Minister Nicola Roxon, represented a 'national strategic approach' to preventative health. The measures, if implemented, could 'deliver health benefits' across the community, it said. AMA president Dr Andrew Pesce said the association welcomed the taskforce's recommendations to introduce simple nutritional labeling on food, restrict alcohol and junk food promotion to young people and children, and ban all remaining forms of tobacco promotion along with a hike in cigarette costs. 'People need help to be convinced to adopt the lifestyle changes that will provide better health and better quality of life, Dr Pesce said, adding that frontline doctors also would play a vital role.
The Perth-based Telethon Institute for Child Health Research said the measures were needed as 'current approaches are unsustainable'. 'We cannot continue to absorb spiraling costs when many of the most burdensome health conditions are lifestyle-based and preventable,' said the director, Professor Fiona Stanley. 'There is a history of industry opposition to these types of initiatives, but now is the time to stand firm and commit to a pathway that will bring real quality of life to so many people, particularly our children.'
The Australian Association of National Advertisers (AANA) said the fast food chains had already agreed on a new self-regulated code on advertising to children, and this should be given more time to 'become fully operational and demonstrate its effectiveness'. 'By contrast, any ban or new, strict regulations on marketing would be costly and burdensome for governments to implement, monitor and enforce with no corresponding health benefit,' said AANA's chief executive Scott McClellan.
The Australian Food and Grocery Council (AFGC) also said it had moved to introduce 'a number of self-regulated measures' including new front of pack nutrition labelling and moves to reduce salt and trans-fats in processed foods.
The Brewers Association of Australia said it was now looking forward to talks with government on how to 'improve drinking choices for that minority of Australians whose excessive consumption may put them and others at risk'. But the association's executive director Stephen Swift also pointed to 'career anti-alcohol activists' who he said were working behind the scenes and who 'often have an economic interest in pushing further research'. 'They will have lobbied hard in the preparation of these recommendations,' Mr Swift said. 'So our industry looks to government to moderate this ongoing debate and ... that policies in this area should be squarely based on demonstration of the facts, not just demonisation of an industry and its consumers.





September 1, 2009 - Starting today September 1st the tax on a pack of cigarettes will increase 10 cents to 45 cents a pack. The tax rate for other tobacco products will be increased to 12.8% (from 10%) of the cost price (means the actual gross purchase price of the other tobacco products before any discounts, rebates, or allowances and before the excise tax is applied) of the product.