Tobacconists Reject Cigarettes Victoria Licensing Amid Impending Crackdown

A significant number of tobacco retailers in Victoria are resisting the state’s new tobacco licensing requirements amidst an upcoming crackdown on illegal cigarette sales. Currently, less than half of the estimated 8,000 retailers in the region have applied for the mandatory licenses.

Tobacco Licensing Scheme Launch

The government launched the Tobacco Licensing scheme in July, aiming to combat the illegal tobacco trade. Despite these efforts, only about 3,300 applications have been received, equating to roughly 40 percent of Victorian tobacco outlets.

Impending Crackdown Details

The enforcement of the licensing scheme is set to begin on February 1, 2026. Industry Minister Enver Erdogan has emphasized the urgency for legitimate businesses to apply before this deadline. After February 1, any unlicensed business must halt tobacco sales until they secure a license.

Penalties for Non-Compliance

• Individuals selling illicit tobacco may face fines up to $366,318 or a maximum of 15 years in prison.
• Businesses caught operating without a license could incur fines exceeding $854,000.
• Licenses can be suspended or revoked based on compliance with a “fit and proper people” test.

Current Challenges and Market Environment

Despite the looming regulations, the prices for illicit cigarettes in metropolitan Melbourne remain stable. For instance, the cost of Manchester brand packets is currently between $12 to $25, depending on the vendor.

Insights into Illicit Trade

Recent developments suggest that criminal syndicates, including those connected to the Hamad cartel, are continuing to operate despite the anticipated crackdown. The organization is believed to control numerous illegal tobacco outlets across Victoria.

Future Implications

The recent arrest of Kazem “Kaz” Hamad in Iraq has raised questions about the future of the illegal tobacco trade in Victoria. With the government focused on enforcing compliance through the new regulatory body, Tobacco Licensing Victoria, the trajectory of the black market remains uncertain.

Conclusion

As the February deadline approaches, the state government is encouraging tobacco retailers to comply with the new licensing requirements. The crackdown aims to dismantle the significant illicit tobacco market while ensuring that legitimate businesses can thrive in a regulated environment.