Illegal tobacco is messing up economic data. That won’t stop until it’s managed like alcohol

By John Quiggin, Professor, School of Economics, The University of Queensland

Most Australians have probably noticed the proliferation of tobacconists and “convenience stores” in the last few years. These stores aren’t making much from the limited offerings on public display. Rather, their profitability comes from under-the-counter sales of untaxed tobacco and illegal vapes.

The growth of illegal tobacco sales has reached the point where the national accounts produced by the Australian Bureau of Statistics (ABS) have been significantly distorted. The ABS has announced it is taking…

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