Australia’s illegal tobacco trade has cost the government A$3.3 billion ($2.1 billion) in excise revenue, with organized crime controlling much of the market, the Australian Criminal Intelligence Commission (ACIC) said in a report on November 6. The ACIC found that about one in five cigarettes sold in Australia is illicit, driven in part by high legal prices that push consumers toward cheaper alternatives.

When healthcare and productivity losses are included, the broader cost rises to A$4 billion ($2.6 billion) a year. The report links at least three deaths and around 200 firebombings to so-called “tobacco wars.” The ACIC added that the A$4 billion figure is “almost certainly an underestimate,” noting it does not account for e-cigarettes and illegal vapes.

New South Wales Premier Chris Minns called for a federal review of excise rates in response to the findings, while Treasurer Jim Chalmers rejected calls to lower prices. The report places illicit tobacco within a wider organized-crime burden now estimated at A$82.3 billion ($53.5 billion), which also includes illegal vapes.

This article was adapted from an original report published on tobaccoreporter.com. All rights belong to the original publisher.