Pubdate: Sun, 04 Nov 2001 Source: Sunday Telegraph, The (Australia) Copyright: 2001 News Limited Contact: http://www.news.com.au/ Details: http://www.mapinc.org/media/436 Author: Simon Kearny ILLICIT LEAF TRADE UP - DPP TARGETS TOBACCO GROWING illegal tobacco is more profitable than marijuana, Australia's top prosecutor has revealed. Commonwealth Director of Public Prosecutions, Damian Bugg QC, says there has been a marked increase in the number of prosecutions of people for selling black-market tobacco, otherwise known as ``chop-chop''. ``The indications are that chop-chop is a burgeoning industry which promises greater profits than growing cannabis and is seen to involve less risk,'' Mr Bugg said. ``Many of the cases referred to the DPP have involved the evasion of over a million dollars worth of excise.'' Australian tobacco growers, mostly around Mareeba in Queensland and Myrtleford in Victoria's Ovens Valley, can make up to $900,000 a year cultivating illicit leaf. Growers legally produce about 180 bales a year (5250kg), which they sell to tobacco companies for about $170 a bale. The Federal Government tax on a bale is $8900, which has resulted in a black-market price of about $5000 a bale, more than 29 times the legal price. Mr Bugg said the more serious cases were prosecuted under the Commonwealth criminal law and carried penalties of up to 10 years in prison. The rush of cases came after the Australian Tax Office (ATO) took over the full investigation of the illegal tobacco trade from Customs in May. ``Queensland and Victoria, being the main tobacco-growing regions, have seen the bulk of the cases,'' Mr Bugg said. ``In the first six months of last year, DPP Melbourne received four new excise cases. ``In the second six months there were 35 new cases in the office.'' The growers of illicit tobacco are not the only culprits. Significant amounts of counterfeit cigarettes are smuggled into Australia every year. The illegal trade in cigarettes costs taxpayers about $500 million a year in unpaid excise, with an average packet of cigarettes attracting a tax of about $7.50. The May Budget papers revealed the $500 million drop in excise and put part of it down to the success of the anti-smoking drug Zyban and the rest down to illegal tobacco, the full cost of which does not show up. - --- MAP posted-by: Josh