Regulatory Disaster: Illicit Trade Skyrockets In Asia Pacific

Monday, 16 September 2024, 2:02 am
Press Release: CAPHRA

The Coalition of Asia Pacific Harm Reduction Advocates (CAPHRA) today issued a stark warning to governments across the Asia Pacific region: your misguided policies are directly fuelling a dangerous surge in illicit tobacco and vaping products, putting public health and safety at risk.

Recent data paints a troubling picture of the unintended consequences of overzealous regulation:

• In Australia, the net tax gap on tobacco excise and customs duty has skyrocketed to 13.1%, more than doubling from 5.4% in 2016-17[1].
• The Asia Pacific e-cigarette and vape market is projected to grow at an alarming CAGR of 34.6% from 2024 to 2030, with a significant portion potentially coming from unregulated sources[2].
• Organised crime syndicates are increasingly involved in the illicit tobacco trade, exploiting regulatory gaps and consumer demand[3].

"Governments across Asia Pacific must wake up to the reality that their heavy-handed approach is backfiring spectacularly," said Nancy Loucas, Executive Coordinator of CAPHRA. "By implementing draconian regulations on legal tobacco harm reduction products, they are inadvertently creating a thriving black market that puts consumers at risk and funnels money into criminal enterprises."

CAPHRA calls on governments to immediately reassess their regulatory strategies:

1. Acknowledge the role of harm reduction: Recognise that safer alternatives to traditional smoking can play a crucial role in public health strategies.
2. Implement sensible regulations: Develop balanced policies that ensure product safety and quality without driving consumers to dangerous black market alternatives.
3. Engage with stakeholders: Work collaboratively with public health experts, industry representatives, and consumer advocates to develop effective, evidence-based policies.
4. Prioritise enforcement: Allocate resources to combat the real threat of illicit trade rather than over-regulating legal, safer alternatives.

"The current approach is not just failing – it's actively harmful," Loucas added. "Governments must act now to stem this tide of illicit trade before it spirals further out of control. The health and safety of millions of Asia Pacific citizens hang in the balance.

"CAPHRA urges media outlets, policymakers, and concerned citizens to take note of this pressing issue and demand immediate action from their governments.”

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[1] https://newsroom.quit.org.au/policy-information/illicit-tobacco

[2] https://www.grandviewresearch.com/industry-analysis/asia-pacific-e-cigarette-vape-market-report

[3] https://www.abf.gov.au/newsroom-subsite/Pages/ABF-shines-spotlight-on-illicit-tobacco-for-World-No-Tobacco-Day.aspx

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