CHOP CHOP CITY
Investigation reveals booming tobacco black market
Illegal tobacco – chop chop – has been flooding into the Darling Downs. It is readily available across Toowoomba with several stores openly selling it at a fraction of the price of legal tobacco – some within walking distance of our police station.
The trade has cost retailers up to half their business and undermines decades of public health policy that is working to wean Queenslanders off their deadly habit.
THE illegal tobacco industry is thriving in Toowoomba, with an investigation by The Chronicle revealing the black market is being propped up by an extensive network of businesses across the city.
Large quantities of loose-leaf tobacco in unmarked clipsal bags - commonly known as chop chop - as well as cartons of Chinese cigarettes, are being sold under the counter at several businesses across Toowoomba and the Darling Downs.
An investigation throughout the past month, all captured on a hidden camera, show shopkeepers handing over illegal products in unmarked packaging with little hesitation.
The illegal tobacco is sold tax-free and at a significantly reduced rate – at times as low as $15 for 50 grams, a fraction of the recommended retail price of $95 for a 40 gram packet of Winfield Blue loose leaf tobacco.
The illegal operations are in almost plain view, with one of the stores just a few hundred metres from the Darling Downs Police District Office.
The Toowoomba stores revealed in the Chronicle investigation to be selling chop chop are Zer Foodstore at the Northlands Shopping Centre, Ruj Shop on Margaret Street, Tel Banet Deli Grocery and Take Away on Ruthven Street and Tariq Foodstuff Store on Bridge Street.
There is also the Stop and See Giftshop and Tobacco store at Pittsworth.
Another Toowoomba store also sold chop chop in counterfeit packaging and remarked that it was “packed fresh daily”.
Some shop owners were keen to offer discounts and talk up the freshness of their products.
The Chronicle understands at least one of the stores was the subject of a combined Australian Taxation Office and Queensland Police Service raid in the past two months but has resumed openly selling chop chop.
Josh Fett, British American Tobacco’s head of corporate and government affairs said the company was aware of at least seven stores selling illegal tobacco in Toowoomba.
He called on the Queensland Government to strengthen the police powers around the sale of illegal tobacco to help combat the underground trade.
“When you can buy a packet of cigarettes for $5 in China and sell it in Toowoomba for $20, it’s not hard to see why organised criminals have gotten into illegal tobacco in a big way,” he said.
“British American Tobacco is aware of numerous stores in Toowoomba selling illegal tobacco.
“Despite regular reports of this crime across the country, it continues to boom in Queensland.”
One step would be to bring in a licensing regime, similar to what is in place for alcohol.
“Unfortunately, there is a lack of clarity for who is even responsible for shutting down stores selling illegal tobacco,” Mr Fett said.
“With no one taking the lead, it’s open slather for these criminals to continue trading.”
Anyone convicted of growing tobacco illegally faces up to 10 years in jail.
Mr Fett said these low price points created unfair competition and also robbed the state of tax revenue that would otherwise fund roads, schools and health care.
The current enforcement action is directed at the interstate and international borders where police, Border Force and ATO officers routinely seize large amounts of illicit tobacco.
On August 26, police seized an estimated $600,000 worth of illegal tobacco at the Coolangatta border crossing that was stashed in the back of a semi-trailer.
However, Mr Fett said it should be complemented with increased Queensland police powers.
“The Australian Border Force can’t stop everything at the border, it’s just not physically possible to search every container or mail parcel that comes in,” he said.
“So, we need to give state police the right powers to step into this space and disrupt the retail level trade.
“Large on-the-spot fines would be a good place to start, (it has) immediate impact and it hits the criminals where it hurts, their bottom line.”