More than $18.5m of illegal tobacco seized

More than $18.5 million worth of illicit tobacco has been seized and destroyed in two raids in regional areas of NSW and Victoria this week.

The Australian Taxation Office says a tobacco crop of about seven hectares from a property in southern NSW was taken and the same amount seized from a northern Victorian property in raids assisted by both state police forces.

ATO assistant commissioner Peter Vujanic says the illicit tobacco trade is worth about $600 million a year in evaded revenue, but the seizures demonstrate the ATO's capability to detect and dismantle organised crime syndicates involved in the trade.

"Engaging in the illicit tobacco trade is not victimless. It significantly deprives the community of taxes that are required to fund essential community services such as roads, school and hospitals," Mr Vujanic said in a statement on Thursday.