Police are celebrating an illegal tobacco and vape bust valued at almost $1 million – but in reality, that is a grain of sand compared to the pile of cash being lost in revenue by the Australian Taxation Office.
New South Wales Police discovered the haul on Tuesday morning after it stopped a northbound alleged courier about 20 kilometres west of Forster.
Inside the van was allegedly close to 450kg of loose-leaf tobacco (or chop chop), 190,000 cigarettes, and 7,000 vapes, which the force estimates has a potential street value of $978,600.
Images released by police show Chinese stamps which news.com.au understands indicates it enter the country through Sydney’s sea port.
As for the driver, a 54-year-old Sydney man, he is due to appear in Forster Local Court on two counts of goods suspected stolen in/on premises early 2026.
NSW Police Deputy Commissioner David Hudson declared last month that it’s “game over’ for retailers hawking illicit tobacco as the NSW government begins its long-promised crackdown.
A number of suspect tobacconists have already been closed in the sting amid the state Labor government’s strict new laws targeting the illegal practice.
Both stores will be closed for 90 days.
NSW Health has substantial powers to make short-term closure orders for premises that sell illicit tobacco and illegal vaping goods or sell tobacco without a licence.
Local courts may make long-term closure orders for up to 12 months for breaches.
Mr Hudson said the closures sent a clear message.
Those stores that can survive without the sale of illegal tobacco need to get out today – the game is over,” Mr Hudson said.
“Because, if (NSW) Health shuts you down, and if you continue to trade after that, your business will not survive.”
Health officials hope the crackdown will act as a deterrent to stores that may have been “pressured” into the sale of illicit cigarettes or are considering doing so.
It comes as the Australian government is losing over $3 billion annually in tax revenue due to illicit tobacco, with approximately 25 per cent of all tobacco consumed in 2023-24 being untaxed.
Legal tobacco tax revenue has plummeted from $16.3 billion in 2019-2020 to a projected $7.4 billion in 2025-2026, as the black market flourishes.
Organised crime groups are estimated to profit around $10 billion annually from the illicit tobacco trade, fuelled by Australia’s purportedly “greedy” and now apparently futile high tobacco taxes.
Read related topics:SydneyTax Time
