Recent estimates suggest illicit tobacco now accounts for between 50% and 60% of tobacco consumed in Australia. Rapid growth in the Australian illicit tobacco market raises concerns a similar situation could evolve in New Zealand.
The high cost of tobacco and substantial price differences between legal and illegal tobacco – between NZ$40 to $60 for a pack in the supermarket compared to NZ$10 to $25 on the illegal market – mean illicit tobacco offers substantial savings.