Victoria introduces new powers to close stores selling illegal tobacco

Stores that sell illegal tobacco products can be closed by inspectors from today under new laws introduced by the Victorian government.

Shops that get hit with closure notices will be publicly listed on Tobacco Licensing Victoria's website.

The government is promising dozens of Tobacco Licensing Victoria inspectors will be out in force conducting spot checks of stores across the state.

Victoria Police officers also have the power to issue closure notices from today if officers uncover illegal tobacco products being sold.

The closure notices initially cover a period of up to 90 days, but long-term closures can also be pursued through the Magistrates' Court.

"If you are selling illegal tobacco, expect an inspector any day at any moment and expect a fluoro sign on the front of your door saying this shop has been closed," Premier Ben Carroll told ABC News Breakfast.

Business owners who ignore closure orders face fines of up to $2.5 million and 20 years' jail.

Researched commissioned by the Cancer Council Victoria recently found that 72 per cent of adults in the state found shops should be shut "straight away" if caught selling illegal tobacco.

"Victorians believe that only retailers who strictly comply with state and federal tobacco control laws should be permitted to sell tobacco products," Cancer Council Victoria chief executive Todd Harper said last month.

"Businesses flouting the rules cannot be allowed to keep their doors open."

Debate over how to tackle illegal tobacco

The new laws come into effect as debate continues at a federal level over the tobacco excise, with both the Coalition and One Nation vowing to slash the tax on cigarettes if elected.

The Coalition is promising to cut the excise by 80 per cent, which it claims will kill the black market for illegal tobacco.

One Nation wants to slash the tax on cigarettes by 75 per cent and freeze indexation for three years.

Both parties argue high taxation has created the market for illegal tobacco products.

Mr Carroll said the Victorian government would not support moves to cut the tobacco excise.

"I think we need to put more money into public health. We shouldn't be on the side of [tobacco company] Phillip Morris, we need to be on the side of public health," he said.

"We've seen this exercise previously in Canada where they cut excise and it just ensured that the black market came back."

Experts are divided on how best to tackle the black market.

Some argue lowering the excise would reduce demand for black market tobacco products, while others say criminals will simply lower the price of illegal products in response.