The Victorian government will finally introduce powers to shut down illicit tobacco and vape stores, a month after launching a crackdown that allowed criminals to continue trading.

Despite years of warnings that organised crime had infiltrated the illicit tobacco trade, The Australian can reveal the Allan government will on Sunday announce new powers allowing them to close businesses caught selling illegal cigarettes and vapes.

The move comes after the government conceded in January that inspectors enforcing Victoria’s new tobacco licensing regime would only be able to fine operators and seize products, not shut down stores.

At the time, Minister for Casino, Gaming and Liquor Regulation Enver Erdogan acknowledged the state was still “developing” closure laws already in place in other states, despite Victoria having the worst record of firebombings, ram-raids and violence linked to the lucrative trade.

The government’s belated decision follows mounting pressure from police, industry groups and the opposition who have warned Victoria’s illicit tobacco market has become the largest in the country, possibly in the world.

Industry sources have confirmed Mr Erdogan’s office had told them store closure powers and landlord termination rights will be introduced on Sunday, with Mr Erdogan expected to hold a press conference to outline the governments plans.

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Little more than 4000 businesses had applied for a licence to sell tobacco ahead of the February 1 deadline, far fewer than earlier estimates of up to 10,000 tobacco retailers operating across the state.

Concerns were raised about whether the Tobacco Licencing Victoria’s 14 inspectors would be sufficient to police thousands of retailers statewide.

“I think 14 is a strong start, but we are going to be reassessing the capability as we move forward,” Mr Erdogan said at the time.

The government had been approached for comment.

Mohammad AlfaresMohammad AlfaresJournalist

Mohammad Alfares is a journalist based in the Melbourne bureau of The Australian, where he covers breaking news, politics, legal affairs, and religious issues. He began filming and editing homemade ‘productions’ as a child — an early sign of his future in journalism. He holds a Bachelor of Communication from Massey University in New Zealand and began his career in broadcast news before transitioning to print. Outside the newsroom, Mohammad is an avid fisherman and adrenaline-seeker. When he’s not chasing a big catch, he enjoys unwinding with a good coffee, fresh air, and a ride on his motorbike.