Australia struggles with illicit tobacco storage, destruction costs soar

australia's federal police are facing a daunting challenge in storing and destroying a surge of illegal cigarettes and vaping products seized from criminal networks. As storage facilities reach capacity, the high cost of disposing of illicit goods is becoming increasingly prohibitive, putting significant pressure on law enforcement resources.

Afp officials testify illegal tobacco trade costs $6 billion in lost excise in six months

According to AFP officials, the cost of destroying seized vapes alone can reach as much as $13 per kilogram, with some companies requiring the dismantling of individual components. A standard 550-kilogram pallet can cost over $7,150 to destroy, underscoring the growing financial burden on authorities.

Since 2016, authorities have seized approximately 2.66 billion illegal cigarettes, 510 tonnes of loose tobacco products, and 7.5 million e-cigarette products. However, the illegal tobacco trade has been rapidly expanding, with illicit sales now estimated to have cost the federal budget $6 billion in lost excise revenue in less than six months.