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A joint taskforce discovered 77 tonnes of illicit tobacco and the ATO estimates 10 per cent of excise is evaded.
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$12m illegal tobacco haul destroyed in NSW
03 May 2023
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A huge illicit tobacco haul worth almost $12 million has been destroyed at a property in Binnaway, in north-central NSW, after a raid by the Illicit Tobacco Taskforce.
More than 77,000kg of tobacco was uncovered on 9 acres along with 170kg of dried leaf tobacco and three kilns, with the value of the tobacco put at more than $11.9 million.
Operation Junglevine2, a joint force involving officers from the ATO, ABF and police, also found a number of safes containing unlicensed firearms and ammunition. One person was arrested in the raids last week.
ATO Assistant Commissioner Jade Hawkins said organised crime was behind illegal tobacco cultivation and innocent bystanders could be caught up in the activity.
“Criminals living and operating in local communities often target genuine farmers and landowners and trick them into renting land for illegal tobacco crops,” she said.
“Criminals who deal in illicit tobacco pose a serious threat to the Australian community. Evading excise duty on tobacco costs the community millions of dollars that could be spent on essential community services.”
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Operation Junglevine2 was a combined effort by the ABF-led Illicit Tobacco Taskforce, the ATO and Operation Phobetor, which comprises detectives from NSW Police, the AFP and the Australian Criminal Intelligence Commission.
ABF Commander Penelope Spies said the ITTF was committed to dismantling the illicit tobacco trade and associated crime.
“Illegal tobacco is not a victimless crime,” she said. “Not only does it rob profits from legitimately operating businesses and the community, proceeds from illicit tobacco are channelled into harmful criminal activities.”
Growing tobacco has been illegal for more than a decade with a maximum penalty of up to 10 years imprisonment and fines ranging up to $412,500 for production and manufacturing.
Established in 2018, the Illicit Tobacco Taskforce detected and seized more than 264 tonnes of illicit tobacco and more than 540 million cigarettes in its first three years, with an estimated excise value of over $870 million.
The ATO calculates the tobacco tax gap – the excise revenue lost due to illicit tobacco imports and cultivation – at $1.89 billion, or more than 10 per cent of the excise it calculates should be collected.
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