Regulatory Chaos: Illicit Trade of Tobacco and Vaping Products Soars in Asia Pacific

The Coalition of Asia Pacific Harm Reduction Advocates (CAPHRA) has issued an urgent warning to governments across the Asia Pacific region: misguided regulatory policies are driving a dangerous surge in the illicit trade of tobacco and vaping products, threatening public health and safety.

Unintended Consequences of Overregulation

Recent data highlights the severe impact of excessive regulation on the tobacco and vaping industries:

• Tax Gap in Australia: The net tax gap on tobacco excise and customs duty has jumped to 13.1%, more than doubling from 5.4% in 2016-17【1】.
• Rising Illicit Vape Market: The Asia Pacific e-cigarette and vape market is projected to grow at a shocking compound annual growth rate (CAGR) of 34.6% from 2024 to 2030, with much of this growth coming from unregulated and illegal sources【2】.
• Organized Crime Involvement: Organized crime groups are increasingly exploiting regulatory gaps and consumer demand, deepening their involvement in the illegal tobacco trade【3】.

Nancy Loucas, Executive Coordinator of CAPHRA, warns: “Governments across Asia Pacific must wake up to the reality that their heavy-handed approach is backfiring. By imposing stringent regulations on legal tobacco harm reduction products, they are inadvertently creating a thriving black market, putting consumers at risk and financing criminal enterprises.”

CAPHRA’s Recommendations: A Balanced Regulatory Approach

CAPHRA urges governments to reassess their current regulatory strategies and adopt more balanced policies that prioritize public health while avoiding the pitfalls of overregulation:

1. Acknowledge Harm Reduction's Role: Governments must recognize that safer alternatives such as e-cigarettes play an important role in reducing the harms associated with smoking and improving public health outcomes.

2. Implement Sensible Regulations: Developing a balanced policy that ensures product safety and quality will help keep consumers away from dangerous black market alternatives.

3. Engage with Key Stakeholders: Effective policymaking requires working with public health experts, industry representatives and consumer advocates to create evidence-based regulations.

4. Prioritize Enforcement Against Illicit Trade: Governments should focus their resources on combating illegal trade, which is a real threat, rather than excessively regulating legal and safer alternatives.

“The current regulatory approach is not only failing but positively harmful. "Governments must act urgently to curb the proliferation of illegal trade before it ramps up," he said, adding that the health and safety of millions of people in the asia-pacific region is at stake.”

Take Action Now

CAPHRA calls on media outlets, policymakers, and concerned citizens to spotlight this urgent issue and demand immediate action from their governments.