Businesses caught selling illicit tobacco could be forced to close under new laws designed to crack down on organised crime linked to the trade in Victoria.

The Victorian government said Tobacco Licensing Victoria (TLV) would be given powers to force businesses to shut down if they were caught selling illegal tobacco.

Landlords would also be given the power to kick out businesses selling illicit tobacco and could face new penalties if they knowingly allowed the trade in their premises.

The government said inspectors would be given the power to destroy seized illegal tobacco before trial, which they argue would keep illegal tobacco off the streets and make prosecutions faster.

Minister for Casino, Gaming and Liquor Regulation, Enver Erdogan, said the new laws would be introduced this year.

“Illegal tobacco is not a victimless crime. We see the impact it’s having on organised crime networks, undermining legitimate businesses that follow the rules,” Mr Erdogan said.

“The stores that are found to be selling this illegal produce will be able to be shut down as efficiently as possible.

“We’ve brought in powers that will mean the regulator and Victoria Police can close down stores immediately.”Tobacco products in packets gathered together

The government said $5 million worth of illegal tobacco had been seized by TLV. (ABC News: Ruby Ritchie)

Mr Erdogan said stores could be closed for a short amount of time or indefinitely. 

“The message should be very clear, if you’re involved in this illicit trade there will be tough new penalties.”

The government has released statistics from the first month of operation of TLV, which started enforcing licensing requirements on February 1.

It said TLV had seized almost $5 million worth of illegal tobacco including 3.19 million cigarettes, 2,243 cigars, 40 kilograms of loose-leaf tobacco and 32 kilograms of shisha tobacco.

Individuals caught with illegal tobacco face fines of up to $370,000 or 15 years’ jail and businesses face penalties of more than $1.8 million.

Mr Erdogan said 49 stores had so far been found to be in breach of licensing requirements by TLV.