CRIMINAL gangs responsible for the importation and distribution of illegal tobacco have been put on notice by the federal government.

Officers from a raft of law enforcement and security agencies are joining forces to crack down on serious and organised criminal groups who smuggle and trade illicit tobacco.

Authorities trying to detect and destroy domestically-grown tobacco crops, known as chop chop, will also be given a funding boost in the 2018/19 federal budget released on Tuesday.

The Turnbull government expects to raise $3.6 billion in revenue by tightening the screws on the black market tobacco trade.

The budget also includes new powers for the tax office to charge duties and a requirement of a permit to import tobacco.

Tobacco importers will be forced to pay all duties and taxes at the border, rather than storing their products in warehouses prior to parting with the money.

Permits will be required for all tobacco imports, except for products purchased by travellers within duty free limits.

Financial Services Minister Kelly O’Dwyer is responsible for setting up the taskforce - led by Australian Border Force - to enforce the changes across other agencies.

The changes follow the 2016 budget announcement of an annual 12.5 per cent rise in tobacco excise, and a 2017 hike to taxes on rolling tobacco.

The government says it has seized an estimated 98 tonnes of illicit tobacco this financial year alone.

Had it been legally sold, it’s could have netted the government almost $90 million in revenue.

We have an issue with weed in the states. It's not really being taxed.