Tobacco shop arson attacks devastate Melbourne businesses, sparking calls for policy change

Consensus Summary

A firebombing attack on a tobacconist in Melbourne’s Fitzroy North on Monday morning destroyed the shop and severely damaged a neighboring vegan cafe, And Bodega, owned by newlyweds Manali Purohit and Ashish Sharma. The explosion, which occurred at around 3.40am–3.45am, left the premises in ruins, with debris scattered like a 'bomb site' according to Sharma. Police confirmed that offenders forced entry and set the fire, though no arrests have been made. The attack is the latest in a wave of arson incidents targeting over 150 tobacconist stores across Victoria since March 2023, linked to organized crime groups like The Commission. Both outlets agree the violence has escalated, with neighboring businesses becoming collateral damage in what Sharma described as 'terrorism.'

The arson follows years of rising tensions in Melbourne’s tobacco trade, where illegal cigarettes now account for around 80% of consumption in 2025, up from just 12% in 2017. The federal government’s high excise tax—generating $7.4 billion in 2024-25—has driven demand for cheaper black-market products, with prices for illicit cigarettes as low as one Australian dollar per pack in some regions. Experts cited by 7NEWS argue that the excise has more than tripled over time, fueling a $8.5 billion black market. Meanwhile, The Guardian notes that small businesses near tobacconists are increasingly denied insurance or priced out of coverage due to the rising risk of arson. The violence has forced authorities to act, with Victoria closing 61 illicit tobacco-linked stores in recent weeks, though critics say enforcement has been slow.

Sharma and Purohit, who poured their life savings into And Bodega, described the aftermath as devastating. Sharma told AAP that the attack felt like 'terrorism,' while Purohit recalled the moment she first noticed damage in late-September, when glass was smashed and a note from The Commission was left behind. The Guardian reports that the couple’s insurance will cover about $25,000, far short of the costs to rebuild, while 7NEWS estimates their total damage bill at well over $100,000. Both outlets highlight the couple’s resilience, with The Guardian detailing their crowdfunding efforts and offers of support from local businesses. Sharma called for politicians to 'abolish this tax' and stop enabling the black market, while Deakin University criminologist James Martin argued that slashing the excise is the only way to dismantle the illicit trade.

The two articles diverge on key details, including the exact time of the explosion—3.45am per 7NEWS versus 3.40am per The Guardian—and the scale of financial losses. 7NEWS emphasizes the broader policy debate, quoting opposition parties proposing excise cuts of 75–80%, while The Guardian focuses on the couple’s personal struggle and the immediate aftermath, including a $5,000 theft from the burnt-out cafe the day after the attack. Both agree that Victoria’s new closure laws, enacted last month, have had limited impact, with the opposition vowing stricter measures if elected next month. The Guardian also notes that Queensland and South Australia introduced similar shutdown orders in September 2024, suggesting a patchwork approach across states.

Despite the crackdown, the articles suggest the problem will persist without deeper reforms. Public health professor Becky Freeman, cited by 7NEWS, warns that reducing the excise could create a 'race to the bottom' with criminals, while also risking higher smoking rates. Meanwhile, Sharma and Purohit’s determination to reopen And Bodega—albeit as a smaller operation—reflects their defiance in the face of organized crime. The Guardian reports they plan to serve baked goods and coffee, framing their comeback as a symbolic stand against violence. With no arrests made and the illicit trade thriving, the future of Melbourne’s small businesses remains uncertain, hinging on whether authorities can balance enforcement with long-term policy changes.