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Australian Retailers: Plain Packaging Has Been A ‘Disaster’

Published on Feb 17 2015 10:40 AM in Retail

Australian Retailers: Plain Packaging Has Been A ‘Disaster’

A councillor from the National Federation of Retail Newsagents (NFRN) has met with the Australian Retail Association (ARA) and shop owners in Sydney, who have come under severe pressure from the black...

A councillor from the National Federation of Retail Newsagents (NFRN) has met with the Australian Retail Association (ARA) and shop owners in Sydney, who have come under severe pressure from the black market following the introduction of plain packaging.

The councillor and Irish retailer, Joe Sweeney, has called the effects the introduction of plain packaging two years ago as ‘devastating’ for retailers, “Criminals are profiting from the illegal tobacco trade at the expense of shop owners and taxpayers.”

Sweeney added: “Cigarettes can be bought on the black market for less than half of the price of legal products and are sold in markets and on streets across Australia.”

A KPMG study found the black market has grown by a massive 25% in Australia since the introduction of plain packaging costing the Australian Government an estimated €800 million in lost taxes in 2014.

“If the situation in Australia is replicated in Ireland it will be another damaging blow to legitimate Irish shop owners and will put more money into the hands of criminals”, Sweeney added.

© 2015 - Checkout Magazine by Hannah Popham. 

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