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Tag: cigarette

  • Indonesia to raise cigarette tax in January

    Indonesia to raise cigarette tax in January

    Cigarette tax in Indonesia will be increased by an average of 10 percent starting January 1 next year in a move to control the production and consumption of cigarettes in the country.

    Local media quoted Indonesian Finance Minister Sri Mulyani Indrawati as saying her ministry had approved regulations on hiking tax on all types and brands of cigarettes effective January 1, 2017.

    “The increase would be deterrent enough but not give a negative impact on employment opportunities in the tobacco industry and at the same time provide sufficient for space for small industries,” she said.

    The Indonesian government is targeting to earn Rp150 trillion (RM450 million) in taxes, an increase of 5.7 percent compared to this year.

    The most popular cigarette in Indonesia is keretek, a type of cigarette made from a mixture of tobacco, cloves as well as other spices.

    The price of keretek is said to be the lowest in the world as a stick of the machine-made cigarette is sold at about 10 sen while a hand-rolled keretek cigarette is sold at about 15 sen a stick.

    Factory manufactured white cigarettes are sold at about 15 sen a stick while white hand-made cigarettes cost about 18 sen a stick.

    Online media quoted Indonesian Public Administration analyst, Agus Pambagyo as saying the regulations to raise cigarette tax would not affect the cigarette industry even though the prices of cigarettes would remain as the cheapest in the world.

    He said the prices of cigarettes should not be so low and in the effort to raise cigarette prices, the government should also take steps to eradicate the sale and production of illicit cigarettes as well as smuggled products.

    At the same time, he said an increase in the prices of cigarettes could provide irresponsible parties the opportunity to sell more cheap cigarettes illegally.

  • The case for forcing the tobacco industry to pay for cigarette butts

    The case for forcing the tobacco industry to pay for cigarette butts

    Cigarette butts with filters are the most commonly littered item worldwide, with a staggering 4.5 trillion of them tossed into the environment each year. This is a huge problem; many end up on beaches and in the ocean, and the tar from burnt tobacco in the filter can be toxic to wildlife.

    Fixing the problem has focused on changing the behavior of people who smoke, but a new report shows making the tobacco industry responsible for the litter with a mandatory product stewardship scheme is likely to have a much greater impact.

    In Australia alone, it’s estimated up to 8.9 billion butts are littered each year. Under the proposed scheme, we could potentially reduce this by 4.45 billion a year.

    So how can it be done in practice? And what would the benefits be from a policy like this?

    Cigarette filters are made of a bioplastic called cellulose acetate, and they typically take years to break down. Smoked cigarette filters are infused with the same chemicals and heavy metals in the tar that harms humans when they smoke.

    Research from 2019 found adding cigarette butts to the soil reduces the germination of grass and clover seeds and the length of their shoots. Seaworms exposed to used filters have DNA damage and reduced growth.

    And exposure to cigarette filters (even unsmoked ones) is toxic to fish – research with two fish species found adding two to four smoked cigarette filters per litre of water could kill them.

    Currently, the tobacco industry does not have to pay for the clean-up of cigarette butts polluting the environment. Rather, the community bears the cost. Cigarette litter and its management cost the Australian economy an estimated A$73 million per year.

    Local councils in particular spend large amounts of money cleaning it up. The City of Sydney, for example, has estimated their cleaning crews sweep up 15,000 cigarette butts daily from city streets.

    And volunteers spend countless hours picking up cigarette butts from parks, streets and beaches. In its 2020 Rubbish Report, Clean Up Australia Day found cigarette butts accounted for 16% of all recorded items.

    The tobacco industry’s response to product waste has been to focus responsibility on the consumer. Tobacco companies have created public education campaigns aimed at increasing awareness of the butt litter problem, supplied consumers and cities worldwide with public ashtrays, and funded anti-litter groups.

    But given the number of cigarettes that continue to be littered, it’s clear these strategies on their own have been ineffective. Many around the world are now calling for stronger industry regulation.

    There have also been calls to ban cigarette filters completely. For example, lawmakers in California and New York have attempted to ban the sale of cigarettes with filters, and New Zealand is finalizing their Smokefree Aotearoa Action Plan, which may include a cigarette filter ban.

    Many jurisdictions in Australia and worldwide are starting to ban single-use plastics such as straws and takeaway containers, and have been criticized for not including cigarette filters in these laws.

    If filters were banned, cigarette butt litter would remain, but without the plastic filter. Although, a recent trial of cigarettes without filters found that people smoked fewer of these than when they were given the same cigarettes with filters. More research is needed on the health impact of smoking filterless cigarettes and the environmental impact of filterless cigarette butts.

    The federal government’s National Plastics Plan, released in March this year, committed to initiating a stewardship task force that would reduce cigarette butt litter in Australia, and would consider a potential stewardship scheme. However, they proposed the stewardship task force be industry-led.

    Product stewardship schemes can be voluntary or written into law. For example, waste from product packaging is managed through a voluntary scheme, the Australian Packaging Covenant, which sets targets for reducing packaging waste that isn’t written into law. On the other hand, there is a law in Australia requiring companies who manufacture TVs or computers to pay some of the costs for recycling these products.

    The new research, commissioned by World Wildlife Fund for Nature Australia, considered four regulatory approaches: business as usual, a ban on plastic filters, a voluntary industry product stewardship scheme, and a mandatory product stewardship scheme led by the federal government.

    Each of these options was ranked according to factors such as the regulatory effort required to implement them, their cost, consumer participation and the extent to which they would reduce environmental impacts on land and waterways.

    A ban on plastic cigarette filters and a mandatory product stewardship scheme were assessed as having the greatest potential environmental benefit. While uncertainties remain about a filter ban, there is no such barrier to implementing a mandatory product stewardship scheme on cigarette waste.

    This scheme could involve a tax that would pay for the recovery and processing costs associated with cigarette butt litter. The study suggested introducing a levy of A$0.004 – less than half a cent – on each smoked cigarette to manage the waste. Other studies from overseas, however, show this cost would need to be higher.

    We can look to the UK for an example of where to start. The UK is currently considering implementing an extended producer responsibility scheme to address cigarette litter. In November this year, it released a consultation document on different options.

    They proposed a mandatory scheme where the tobacco industry would pay for the full costs of cleaning up and processing cigarette waste. Other costs they might be made to pay are for gathering and reporting data on tobacco product waste, provision of bins for cigarette butts, and campaigns to promote responsible disposal by consumers.

    It is time for the federal and state governments in Australia to make the tobacco industry pay for the mess they create.

  • 90 percent of Vietnamese want tobacco tax raised

    90 percent of Vietnamese want tobacco tax raised

    Most Vietnamese want the tax on tobacco raised as a means to reduce smoking, a survey has found.

    The survey, by Canadian NGO HealthBridge, released at a conference Tuesday showed that 90 percent of Vietnamese think raising the price of a 20-pack of cigarettes to VND45,400 ($1.95) will have an impact on smoking.

    The average price now is VND15,000 (64 cents), the survey said.

    Over 80 percent of respondents said smokers would be deterred if the price is hiked to VND22,700 (97 cents), the survey, which polled around 600 people, said.

    The same number said the tax should be increased to 45-70 percent. The special consumption tax (SCT) on tobacco is currently 35.6 percent.

    Should tax on tobacco be raised?current tax 35.6% retail priceTax should not be changedTax should increase to at least 45%No comment

    Le Thi Thu, senior project manager at HealthBridge, said that studies have shown smoking is a greater financial burden on the poor than the rich since treatment of diseases caused by smoking costs a lot of money.

    “The negative impacts of smoking on Vietnamese people’s lives are undeniable.”

    Smoking gets easier

    But Vietnam’s policies on tobacco tax have not been effective in reducing smoking, experts said at the conference.

    Nguyen Thu Huong, communications officer at the Ministry of Health’s Tobacco Control Fund, said the average price of a 20-pack of cigarettes fell from VND12,700 (54 cents) in 2010 to VND11,000 (47 cents) in 2015.

    The low price allows more people, even children, to smoke, she added.

    Dr Nguyen Tuan Lam, a specialist at the World Health Organization (WHO) Vietnam, noted the current SCT of 35.6 percent on tobacco is lower than the global average of 56 percent.

    It is also lower than in several other Southeast Asian countries such as Thailand, Singapore, the Philippines, and Malaysia, he said.

    Vietnam’s tobacco prices are the second lowest among 20 western Pacific countries for which data is available, he said.

    The Ministry of Finance has proposed two options for raising the tax.

    The first option is a combination of an SCT and a fixed tax. With it, a 20-pack of cigarettes will attract an additional VND1,000 (4.3 cents) in fixed tax, and each cigar, VND1,500 (6.4 cents).

    The second option is to increase the SCT every year until it reaches 85 percent in 2021.

    Health officials favor the first option, but said the fixed tax should be higher at VND2,000-5,000.

    Lam said a tax of VND5,000 would reduce the number of male smokers by 6.3 percent and the number of people dying of tobacco use would fall by 900,000.

    Pham Thi Hoang Anh, country director of Healthbridge Vietnam, said the government should gradually increase the taxes on tobacco every year. “Thailand increased them every two years between 1992 and 2015, from 55 percent to 86 percent.”

    But that was on wholesale prices, which would be equivalent to 115-600 percent on retail prices in Vietnam, she explained.

    “No one is harmed when tobacco tax is raised. There are few industries that are growing as strongly as tobacco, which is growing at 9-10 percent a year.”

    A tax hike would not kill businesses, but would decrease the number of smokers and increase the government’s revenues, she added.

    Last June WHO advised the Vietnamese government to hike the tax on tobacco to deter people from smoking.

    Vietnam is among the 15 countries in the world with the lowest tobacco prices, WHO chief Kidong Park said.

    To achieve its target of reducing the rate of male smokers from 47 percent to 39 percent by 2020, the government would need to raise the fixed tax rate on tobacco by at least VND2,000 per pack, he said, referring to the finance ministry proposal.

    VND5,000 per pack would be better, he added.

    Vietnam has among the world’s highest numbers of smokers. An estimated 15.6 million Vietnamese spend VND31 trillion ($1.36 billion) on cigarettes each year.

    Smoking is a major cause of lung cancer and cardiovascular diseases in the country, and costs it VND23 trillion ($1 billion) in treatment and labor loss annually, according to the Ministry of Health.

  • WHO wants Vietnam to raise tobacco taxes

    WHO wants Vietnam to raise tobacco taxes

    Vietnam should raise its tobacco tax in order to deter and reduce people smoking, the World Health Organisation has advised.

    WHO head Kidong Park said at a recent meeting held by the Health Ministry in Hanoi that Vietnam was among the top 15 countries in the world with the lowest tobacco prices.

    He said Vietnam’s current tobacco tax only accounts for 35 percent of a cigarette pack’s retail price, which is lower than the world’s average of 56 percent. In comparison, corresponding tax rates in Thailand, Brunei and Malaysia are 75, 81 and 57 percent respectively.

    Park said that in order to reach the government’s target of reducing the number of smokers among Vietnamese males from 47 to 39 percent by 2020, the country would need to raise its tobacco taxes by a fixed tax rate of at least VND2,000 per packet. VND5,000 per packet would be better, he added.

    The Finance Ministry had previously proposed two tobacco taxing options for inclusion in the Tax Administration Law – to apply an additional fixed tax rate for each cigarette pack, or incrementally increase the special consumption tax on tobacco each year until it reaches 85 percent in 2021.

    Under the first option, a 20-cigarette pack would cost an additional VND1,000, and each cigar, VND1,500.

    The Ministry of Health is currently leaning towards the first option, but has suggested an increase of VND2000 or VND5000 per pack, saying VND1,000 is too low.

    At a workshop on Tobacco Taxation organized by Oxfam early last month, Deputy Director of the Tobacco Control Fund, Phan Thi Hai, said higher tax rates would not only increase government revenue, but also “prevent adolescents and poor people from purchasing more cigarettes.”

    Vietnam has one of the world’s highest populations of smokers. It is estimated that 15.6 million Vietnamese smokers spend VND31 trillion ($1.36 billion) on cigarettes every year, which promotes trade in contraband tobacco.

    Smoking is a major cause of lung cancer and cardiovascular diseases that costs Vietnam VND23 trillion (more than $1 billion) in treatment and labor loss every year, according to the health ministry.

  • Indonesia Sees Decline in Number of Cigarette Factories

    Indonesia Sees Decline in Number of Cigarette Factories

    The Director General of Customs and Excise for the Finance Ministry, Heru Pambudi said the number of cigarette factories in Indonesia continues to fall significantly over the past years. There were 4,669 cigarette factories in 2007, which had fell to 754 by 2016

    According to Heru, the better tobacco control measures taken by the Directorate General of Customs and Excise has resulted in the decline of cigarette factories. “Both through administrative and physical control [measures],” he said in a written statement Wednesday, September 28, 2016.

    Heru said the Directorate General of Customs and Excise has been taking rigorous approach to issuing permit to manufacture tobacco products. In addition, the Directorate General had shut down the non-compliance factories. “Non-compliant factories will be closed,” he said, adding that the measure will be continued.

    The measure, according to Heru, aims to improve compliance of cigarette factories, as well as to supress illicit tobacco trade, which is one of the directorate’s remit which include monitoring tobacco distribution.

    Indonesian Cigarette Manufacturers Association (GAPPRI) chairman Ismanu said strict tobacco control policies by the Directorate General of Customs and Excise have been adequate, “GAPPRI fully supports the measures taken by the government in developing tobacco industry,” he said.

  • Davidoff thinks big as it exercises Bluebell option

    Davidoff thinks big as it exercises Bluebell option

    As expected, Oettinger Davidoff AG has acquired the majority interest in Bluebell Cigars (Asia) Ltd – its long-time Asian distributor – in what is a highly significant strategic move.

    Bluebell is a family-owned company that is one of the largest brand luxury distributors in Asia, representing over 50 luxury and lifestyle brands in 10 countries, operating 500 retail stores, and employing over 2,500 dedicated staff. It has also been associated with Davidoff cigars for more than 50 years.

    Davidoff’s majority share investment in Bluebell follows the 25% stake taken by the leading premium cigar company a year ago and this new ownership has been effective from January 1, 2016.

    As part of the new structure, Davidoff says that Bluebell Cigars (Asia) Ltd will be renamed Davidoff of Geneva (Asia) Ltd. and will continue to be led by Laurent de Rougemont as Managing Director.

    Davidoff CEO Hans-Kristian Hoejsgaard and Laurent de Rougemont Senior Vice President Asia

    Left to right: Davidoff CEO Hans-Kristian Hoejsgaard and Laurent de Rougemont, new Senior Vice President Asia.

    He will report directly to Oettinger Davidoff CEO Hans-Kristian Hoejsgaard in his new role as Senior Vice President Asia and  Rougemont will also be a member of Oettinger Davidoff’s global management group.

    In addition, Gerhard Anderlohr, Oettinger Davidoff’s current Head of Asia, will take up a new role as Vice President Business Development with a particular focus on China and the Chinese consumer.

    Commenting, Hans-Kristian Hoejsgaard, CEO Oettinger Davidoff AG, said: “The 2015 Agreement with Bluebell Cigars (Asia) Ltd provided us with a right over time to acquire a majority interest in our long-standing Asian partner and the time was now right to make that move.

    “The JV will continue to operate in the spirit of equal partnership and Bluebell and Oettinger Davidoff will be equally represented on the company’s Board of Directors. I am delighted in this way to cement our relationship with Bluebell and further deepen our commitment to the Asia Region, which continues to represent significant future potential for the Davidoff business.”

    Ashley Micklewright, CEO Bluebell (Asia) Ltd. stated: “We are delighted Oettinger Davidoff exercised their right to increase their interest in our joint venture and that we can now operate the business in the spirit both parties initially intended over a year ago.

    “In today’s market, the impact of digital technologies and the harmonisation of markets across the globe has meant legacy relationships have had to be revisited and adapted so that the interest of parties remain aligned for the greater good of the brand.

    “We have been particularly proud to have been associated with Davidoff for the past fifty years and of course its success in Asia, and we believe we have a foundation which will allow us to remain as proud for many more years to come.”

  • Cigarette sales to minors: Shop’s licence revoked

    Cigarette sales to minors: Shop’s licence revoked

    A shop in Bedok has had its tobacco retail licence revoked after it was found to have repeatedly sold tobacco products to minors.

    Two other shops – a 7-Eleven outlet at 523, Bukit Batok Street 52 and Blu Jaz at 11, Bali Lane – have had their licences suspended by the Health Sciences Authority (HSA) for six months for the same offence. Both sold tobacco products to those aged under 18 for the first time.

    The shop whose licence has been revoked, Bedok Goodwill Store – located at 79, Bedok North Road – had already seen its licence suspended for six months in 2012 for the offence.

    Despite that, the outlet continued to sell tobacco products to the underaged, with the most recent case involving three minors in school uniform in two separate incidents on the same day, the HSA said in a press release yesterday .

    The seller also took the opportunity to profit from the sales by selling the cigarettes at a higher price than the actual retail price, it added.

    The shop’s licence was revoked on Dec 10 last year, meaning it is no longer allowed to sell tobacco products, the release said.

    The HSA said the three sellers, all employees of the three respective shops, failed to check the ages of the minors before selling them the tobacco products.

    They were caught following the HSA’s ground surveillance and enforcement activities.

    The authority has reminded licensees that they are responsible for all transactions of tobacco products at their outlets, and for the actions of their employ-ees.

    Anyone convicted of selling tobacco products to those aged under 18 faces a fine of up to $5,000 on the first offence, and a fine of up to $10,000 for subsequent offences.

    In addition, the tobacco retail licence will be suspended for six months for the first offence, and revoked for the second.

    However, any outlet found selling tobacco products to anyone aged under 18 in a school uniform, or anyone below 12 years of age, will have its licence revoked, even for the first offence.

    Twenty-five licences have been suspended and 22 revoked in the last three years, the HSA said.

    A list of these retailers can be found on the HSA’s website (www.hsa.gov.sg) under Health Products Regulation.

    Anyone with information on the illegal sales of tobacco products to minors can call the Tobacco Regulation Branch on 6684-2036 or 6684-2037 during office hours.

     

  • ‘Sin tax’ cuts cigarette smoking in Philippines

    ‘Sin tax’ cuts cigarette smoking in Philippines

    A “sin tax” on cigarettes has sharply cut smoking in the Philippines while also boosting government revenues, the internal revenue chief claimed on Monday.

    The number of cigarette packs put on store shelves by retailers fell by nearly a third between 2012 and 2014, said revenue chief Kim Henares.

    The government raised excise taxes on tobacco and liquor products in 2012 to raise revenues and discourage smoking, which kills nearly 88,000 Filipinos each year according to World Health Organisation data.

    “We exceeded the targets,” Henares told AFP.

    The government agency’s data showed 5.764 million packs were withdrawn from storage and placed on retail shelves in 2012, compared to 4.869 billion packs in 2013.

    By 2014 the figure was down to 3.917 billion packs, said Henares.

    Taxes are levied on the number of packs placed on store shelves rather than the number subsequently sold.

    Proceeds from the taxes on cigarettes rose to P74.328 billion ($1.69 billion) last year from 32.16 billion pesos in 2012, the agency said.

    Under the law, a portion of the revenues from sin taxes are allotted to finance government health programes including anti-smoking campaigns.

    A Department of Health survey in 2009 found that more than 28 per cent of the country’s adult population were smokers.

    The government first asked parliament to raise taxes on “sin” products as early as 1997, but a strong lobby by tobacco manufacturers delayed this for years.