REGIONAL and rural communities are being asked to be on the lookout for activities that may point to illicit tobacco production.

A statement from the Australian Taxation Office (ATO) on Tuesday, 1 April said that illegal tobacco operations were not run by genuine farmers, but by organised crime syndicates.

"These activities divert vital funds from the community and place them into the hands of criminals, who use the profits to fund other serious crimes," the statement said.

"By staying informed and vigilant, everyone can play their part in keeping the community safe and ensuring a level playing field for legitimate businesses."

Tobacco growing and production of related products was outlawed nationwide in 2016.

A recent raid at a property in rural Victoria, prompted by a community tip-off, led to the seizure and destruction of over 16 tons of illicit tobacco.

The amount seized had an estimated excise value of nearly $35 million.

"This operation, which targeted an organised crime syndicate, highlights the crucial role that community members play in combating illegal tobacco activities.

"Community tip-offs are one of our best sources of information."

April and May are the peak growing times for tobacco plants and the ATO is urging the community to be aware of signs that illicit tobacco is being grown, and report it online at www.ato.gov.au/tipoff or by phoning 1800 060 062.