Illegal tobacco sales cost Australian gov't 1.2 bln USD: report

The illegal tobacco trade is costing Australia's government more than 1.6 billion Australian dollars (1.2 billion U.S. dollars) in tax, according to a report released on Wednesday.

The Illicit Tobacco in Australia 2016 report, released by auditing firm KPMG on Wednesday, has said that illegal tobacco sales comprise 13.9 percent of all tobacco consumption, which have cost the government more than a billion dollars lost in tax revenue.

The report said that 2.3 million kg of illegal tobacco was consumed by Australians last year, in the form of illicit cigarettes or loose leaf tobacco commonly known as "chop chop."

The report also recommended a national strategy to combat the issue, which was also backed by representatives from the local tobacco industry.

Last year, the Australian government announced a grant of 7.7 million Australian dollars (5.8 million U.S. dollars) for the Australian Border Force (ABF) to combat organized illegal tobacco crime syndicates.

According to the ABF, in the last six months of 2016, their strike teams intercepted 142 tonnes of illegal tobacco, up from 82 tonnes in the year previous. Endit