Monday,
7 July 2025
Inquiry into illegal tobacco trade announced

A new inquiry into the illegal tobacco trade in NSW has begun with the NSW Parliamentary committee to examine a range of issues surrounding the sale of illegal tobacco.

The announcement comes as posts and comments in community groups across Young have increased with concerns and complaints over the number of tobacconists and tobacco selling shops in the town.

"They can't be seriously putting in another smoke shop.." one local posted alongside a photo of a vacant shop.

Commentors on the post ranged from those who felt locals shouldn't care unless it affected them to others questioned Council for 'allowing this to happen'.

"Would we have so many tobacco shops in town if governments didn’t tax legitimate tobacco outlets so much?" one commentator asked.

"Who actually really cares, unless you smoke it won’t bother you," another wrote.

"Have we gone from the Cherry Capital to the Smoke Capital of Australia?" another asked.

"Why not? Matches the amount of pubs and coffee shops," a local wrote.

Though there was an 'Opening Soon' sign on the front of the business, which had formerly been a tobacco, gifts and accessories retail store, there was no confirmation that the shop would be another tobacco shop.

According to Google there are four specialised tobacconists in Young with tobacco products also able to be purchased at supermarkets, liquor stores and service stations.

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The parliamentary inquiry will look into links to organised crime and money laundering, social and economic impacts on local communities and businesses and the adequacy of existing legislative and administrative frameworks including compliance and enforcement regimes.

Chair of the committee Robert Borsak MLC said the reporting on the sale of illegal tobacco in communities has risen with small businesses being affected.

"The rise of the black-market tobacco trade and its impact on local communities and small businesses has been widely reported and appears to be reaching crisis point," Mr Borsak said.

"Small businesses have reported instances of violence, intimidation and financial insecurity and there have been reports of harmful substances detected in illicit tobacco products including fungal and mould spores."

Mr Borsak is welcoming the chance to hear from those who have been affected and those who are experts in the industry as well as other stakeholders.

"This inquiry will be an opportunity for us to hear from various stakeholders, including industry experts, small businesses, health professionals and law enforcement agencies, to better understand the nature, extent and impact of illegal tobacco trade," Mr Borsak said.

"The committee is particularly keen to hear from small businesses and communities in regional New South Wales."

Mr Borsak said increasing excise duties, while intended to reduce consumption and generate revenue, may not have had the desired effect.

"The committee looks forward to gaining a detailed evidence-based understanding of what is happening on the ground with a view to determining whether the legislative framework and enforcement regime is adequate to address this growing problem," he said.

The committee is welcoming submissions from interested stakeholders and members of the community that will be considered during the inquiry.

The closing date for submissions is Friday August 1, 2025 with more information about the inquiry, including the committee membership and terms of reference available on the website at www.parliament.nsw.gov.au/committees/inquiries.