Leading harm reduction advocacy group, CAPHRA, has sounded the alarm over a dangerous trend in the Asia Pacific region stating that misguided government policies are fuelling a surge in illicit tobacco and vaping products, putting public health and safety at risk.
The Coalition of Asia Pacific Harm Reduction Advocates (CAPHRA) has issued a stark warning to governments across the region, urging them to reassess their regulatory strategies.
According to the group, overzealous restrictions on legal tobacco harm reduction products are creating a thriving black market that is being exploited by organised crime syndicates.
Recent data paints a concerning picture of the unintended consequences of these policies:
In Australia, the net tax gap on tobacco excise and customs duty has soared to 13.1%, more than doubling from 5.4% in 2016-17. This indicates that a significant portion of the tobacco market is now operating outside of legal channels.
According to data from Grand View Research, the Asia Pacific e-cigarette and vape market is projected to grow at a rapid pace, with CAGR increasing by 34.6% from 2024 to 2030, and a significant portion of this growth potentially coming from unregulated sources.
Criminal syndicates are increasingly involved in the illicit tobacco trade, taking advantage of regulatory gaps and consumer demand. This not only undermines public health but also fuels other forms of criminal activity.
“Governments across Asia Pacific must wake up to the reality that their heavy-handed approach is backfiring spectacularly,” said Nancy Loucas, Executive Coordinator of CAPHRA.
“By implementing draconian regulations on legal tobacco harm reduction products, they are inadvertently creating a thriving black market that puts consumers at risk and funnels money into criminal enterprises.”
CAPHRA calls on governments to take immediate action to address this crisis by recognising that safer alternatives to traditional smoking can play a crucial role in public health strategies.
They have called for governments to also develop balanced policies that ensure product safety and quality without driving consumers to dangerous black market alternatives, work collaboratively with public health experts, industry representatives, and consumer advocates to develop effective, evidence-based policies and allocate resources to combat the real threat of illicit trade rather than over-regulating legal, safer alternatives.
“The current approach is not just failing – it’s actively harmful,” Loucas added.
“Governments must act now to stem this tide of illicit trade before it spirals further out of control. The health and safety of millions of Asia Pacific citizens hang in the balance.”
“CAPHRA urges media outlets, policymakers, and concerned citizens to take note of this pressing issue and demand immediate action from their governments.”
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