Source: Radio New Zealand
A report into the illicit tobacco trade has been released by Retail NZ. 123RF
The opposition is voicing its cautious support for a crack down on black market tobacco, but warns the tobacco industry itself could be stoking fears.
A report into the illicit tobacco trade, released by Retail NZ on Tuesday, pushed for the formation of a unified response from Customs, Police, Health NZ and Inland Revenue.
Its chief executive says we need to act quickly, but the prime minister isn’t convinced.
Chief executive Carolyn Young said there needed to be a dedicated, collaborative effort.
“You also have to have the ability to arrest people, you’ve got to have the ability to seize product, you’ve got to have the ability to close the store,” she said.
“If we really want to get on top of this we need to attack it now, with dedicated resources, and funding appropriately.”
An RNZ investigation found multiple shops operating in Auckland selling the cheap smokes, with one charging just $13 for a pack, less than half the excise duty required by law to be paid.
Importing cigarettes without paying the excise duty is illegal, and offenders can be charged with defrauding customs revenue.
It was also illegal for retailers to sell illicit cigarettes, with offenders facing a six-month prison sentence, a $20,000 fine or both.
Young said she was open to legislative changes to make a taskforce more effective.
“Without having appropriate penalties that would deter criminals from wanting to continue down this pathway, then they’re just going to continue…”
Chris Hipkins says he was yet to see proof that an illicit tobacco market existed in New Zealand. RNZ / Mark Papalii
Labour leader Chris Hipkins is supportive, but sceptical.
“We’re certainly open to looking at how we can support a crack down on the illicit tobacco trade,” he said.
He didn’t believe the black market was as big in New Zealand as it was overseas.
“I’m also very mindful that often a lot of the fear-mongering around the illicit tobacco trade is actually stoked by the tobacco companies themselves, but is there more we can do to ensure that we don’t have illicit tobacco trade in New Zealand, if there is a need for more action there, we’re very open to it.”
Hipkins said he was yet to see proof on an illicit market here.
“I think the key thing is we’ve got to identify what the problem is that we’re trying to solve here,” he said.
“I’ve yet to see significant evidence that there is an illicit tobacco trade in New Zealand, but if it’s out there, we do want to see it dealt with.”
In 2024, the illicit market reached 27.2 percent of total tobacco use, according to data from tobacco industry groups.
But when asked about supporting a potential taskforce, Prime Minister Christopher Luxon was unenthusiastic.
“That’s not a priority for me right now,” he said.
Customs minister Casey Costello welcomed Retail NZ’s report, and told RNZ the illicit market had been a concern since she had been in the role.
“I think a joined up taskforce is a priority, is achievable, and is something that we really need, and it is consistent with my desire around organised crime to have much better connectivity between agencies.”
The minister said a joint task force would be essential, and has already sought advice around a broader “force multiplier” response from health, police, and Customs.
Police minister Mark Mitchell said he was concerned about any black market or illicit trade, which often linked back to organised crime, though said he had not read the Retail NZ report yet.
“We’ve just got to be vigilant and constantly working on ways of making sure that we don’t allow that type of black market to really become and entrenched baked in in New Zealand.”
At the moment, we were better placed than Australia, he said.
“We want to make sure that we stay there, and that we can continue to deal with these issues.”
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
