Lost Tax Revenue due to Cigarette Smuggling in Australia

in Business Risk

Australia’s government lost up to $1.1 Billion in tobacco tax revenue in 2012 due to cigarette smuggling activities.

Security agencies in Australia 82 million black market cigarettes in 2011. In 2012, the number of illicit cigarettes increased to 122 million.

2.7 billion cigarettes were smoked in the country in 2012 that were purchased without the payment of taxes, or 11.3 percent of all cigarettes smoked. Most of the contraband cigarettes were either smuggled into Australia from China or South Korea or produced in homegrown tobacco shops.

Source:  Lily Kuo, “Australia lost $1.1 billion because of illegal cigarettes last year,” Quartz, October 2, 2013.

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