Illicit Cigarette Trade ''Very Low'' In New Zealand

Source from:  IB Times 06/05/2015

Customs officials in Tonga have seized a container with about three million counterfeit cigarettes. Authorities had recovered Manchester cigarettes, a counterfeit brand being sold in Australia.

Before customs officials confiscated the illicit cigarettes in Tonga, they were on their way to Australia, according to the Tonga Chamber of Commerce. A study commissioned by the tobacco industry has found that illicit cigarettes in Australia are being traded in the black market and growth has increased to 14.5 percent in 2014 from 13.5 percent in in 2013. The illicit cigarette trade has led to the loss of $1.35 billion worth of taxes, reports Stuff.

The tobacco industry in New Zealand said increased taxes in the country will have the same effect. "In Australia, a recent KPMG reports indicates consumption of illegal tobacco has reached record levels. It's a problem that will only get worse in New Zealand with rising tobacco taxes and extreme regulation," said Jason Erickson, general manager of New Zealand and Pacific Islands, Phillip Morris Limited.

However, cigarette smuggling in New Zealand remains "very low" at 1.8 to 3 percent of the total market. Ali Ajmal, a research and policy analyst at Action on Smoking and Health, said he believes the illicit cigarette trade is not really a problem in New Zealand. Ajmal's report in the current issue of the Australia and New Zealand Journal of Public Health, said there has been barely an increase in illicit cigarettes.

New Zealand's customs manager of Border Operations Shane Panettiere said officials have not yet seen large shipments being smuggled through the country's borders. However, officials have observed a low quantity but high volume going through mail and courier channels.

The World No Tobacco Day was observed on May 31 and the World Health Organisation launched a campaign to stop the illicit trade of tobacco products, said News International. WHO and its partner governments and non-government agencies organise events to raise awareness of the trade and usage of tobacco. Enditem