Gangs vie to control illegal tobacco trade

A spate of tobacco store firebombings has shone a spotlight on the industry’s infiltration by organised crime groups.

Carried out by low-level youth foot soldiers, more than two dozen attacks on tobacco stores across Victoria since March have revealed an ongoing turf war between rival syndicates.

But while the string of attacks in Victoria has generated headlines, investigators say firebombings and violence are being seen across the country.

Police believe the arson attacks are a combination of rival groups attacking each other and syndicates sending a message to tobacco stores that have refused to stock their products.

“This conflict includes both the physical placement of illicit tobacco into stores … as well as demands for stores to sell the syndicates’ illicit tobacco products and pay a tax, or in other words an extortion, on a weekly basis,” a Victoria police spokesman said.

The syndicates, believed to be from Middle Eastern organised crime groups and outlaw motorcycle gangs, are fighting over control of the sector’s massive profits.

According to the latest report released by the Australian Border Force (ABF), surging demand has led to record seizures of illicit tobacco in recent years.

In the past financial year the ABF seized more than 2000 tonnes of tobacco for the first time, a jump from 1600 tonnes the previous year. This was almost equivalent to the quantities seized in the three years before that combined.

The high tobacco tax in Australia makes illegal tobacco highly profitable.