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Year: 2023

  • Morocco to Cap Cigarette Deliveries

    Morocco to Cap Cigarette Deliveries

    Image: Achira22

    Morocco will tighten regulations on cigarette sales starting Jan. 1, 2024, reports Morocco World News.

    The new rules set maximum levels of substances in domestically sold cigarettes. Tar content will be capped at 10 milligrams, nicotine at 1 milligram and carbon monoxide at 10 milligrams.

    The Customs and Indirect Taxes Administration announced that all cigarettes must be accompanied by laboratory analysis results from accredited laboratories.

    Earlier this month, the Commission for the Approval of Manufactured Tobacco Product Prices approved a hike in cigarette prices. Starting Jan. 1, 2024, smokers will pay an additional MAD1 ($0.10) to MAD2 per cigarette pack.

    Morocco’s budget calls for an increase in the domestic consumption tax on tobacco from MAD100 in 2022 to MAD 550 by 2026.

    Tax authorities expect to collect about MAD12.5 billion from manufactured tobacco sales in 2023, up 5.82 percent from the amount earned in 2022.

  • New Year Begins Belgium’s Vaping Tax

    New Year Begins Belgium’s Vaping Tax

    Credit: Master Sergeant

    Beginning January 1, 2024, Belgium will introduce a new tax on e-liquids used in electronic cigarettes. The tax will be set at 15 cents per milliliter.

    The move has received criticism from both users and retailers who fear that it will lead to increased costs and a potential shift back to traditional tobacco cigarettes.

    The spokesperson for the federal Finance Minister defended the tax, stating that it aligns with Germany’s tax rate, which is also set to increase in the coming years, according to media reports.

    They further clarified that the goal is not to encourage people to return to smoking combustible cigarettes but to recognize that e-cigarettes are also tobacco products and should be used as a temporary measure to quit smoking.

  • U.S. Premium Cigar Imports Flat in 2023

    U.S. Premium Cigar Imports Flat in 2023

    A recent report by the Cigar Association of America (CAA), an industry trade group, found that the United States imported a total of 338.87 million premium cigars between January and September 2023. The amount is only 2.61 million cigars less than the number imported during the same period in 2022. This represents a decrease of 0.8 percent.

    “As of the end of the third quarter this year, premium imports have climbed back to near breakeven when comparing this year with the third quarter in 2022,” said Daniel Cotter, chief statistician for CAA, in a press release. “The data show the low point when comparing this year to last year was at the end of April. As of 4/30/23, premium imports were down almost 7 percent year-over-year (YOY).”

    Nicaragua continues to be the top supplier of premium cigars to the U.S. with 181.41 million premium cigars imported in the first nine months, accounting for roughly 53.5 percent of all imports.

    The Dominican Republic, which accounts for 30.7 percent of imports, has had increased exports for most of 2023, compared to 2022.

    In order to surpass 2022 imports, the U.S. would need to import an average of 41 million cigars per month. CAA calculates its numbers based on both the import data provided by the U.S. Census Bureau and U.S. Customs Services, as well as information from cigar companies themselves.

  • PMI Prevails in Investors’ Suit

    PMI Prevails in Investors’ Suit

    Photo: fotofabrika

    A U.S. appeals court on Dec. 26 dismissed a securities fraud class action brought by shareholders against Philip Morris International, reports Bloomberg Law.

    Investors accused the tobacco manufacturer of misleading them about the methods and results of IQOS clinical studies presented to the U.S. Food and Drug Administration. PMI sought the approval so that its former parent company, Altria Group, could sell the device within the U.S.

    Investors also targeted company statements about projected IQOS sales in Japan, the only country at that time where PMI sold the line of products nationwide.

    The U.S. Court of Appeals for the Second Circuit ruled that statements by PMI and its executives that the IQOS studies were “rigorous,” “the best science,” and “very advanced” were inactionable puffery. The court rejected the investors’ argument that such statements could be proven true or false.

    Optimistic remarks about sales performance in Japan, meanwhile, were allowable forward-looking statements, the court ruled.

  • Minister Rejects Call for Religious Cigarette Ban

    Minister Rejects Call for Religious Cigarette Ban

    Image: dragancfm

    Malaysia’s Health Minister Dzulkefly Ahmad rejected a call to ban cigarettes based on Islamic considerations, reports the Malay Mail.

    “I am not a mufti to make cigarettes haram [forbidden],” he said in response to a lawmaker’s comment at a party convention on Dec. 24.

    The exchange followed the passage in Malaysia of new legislation that regulates tobacco advertisements, packaging and public smoking but excludes a provision that would have made it illegal for Malaysians born after 2007 to buy or consumer nicotine products.

    The so-called generational tobacco ban (GEG) was abandoned after the Attorney General’s Chambers suggested it might violate the constitution by creating different rules for different age groups. Critics however blamed tobacco industry pressure for Malasia’s U-turn.

    Earlier Ahmad had apologized for the failure to retain the GEG in the tobacco law.

  • PMI’s Strategy Multi-Pronged: Baker

    PMI’s Strategy Multi-Pronged: Baker

    Photo: PMI

    Philip Morris International is set to introduce LEVIA, a tobacco-free product boasting a cellulose-based composition with nicotine, aiming to reduce harm significantly compared to conventional cigarettes.

    In an interview with Daily News Egypt, Gizelle Baker, PMI’s vice president of global scientific engagement, emphasized the company’s commitment to offering satisfying alternatives to smokers, understanding the complexity of breaking the smoking habit. PMI’s strategy, she noted, involves varied device types, price points, flavors, and addressing rituals associated with smoking.

    Designed as a nicotine-delivery system resembling e-cigarettes but without tobacco, LEVIA emits 99 percent fewer harmful chemicals than cigarettes, according to PMI. Paired with the ILUMA device, LEVIA aims to provide a sensory smoking experience while minimizing health risks. PMI’s approach to reducing secondhand smoke involves eliminating smoke production by not burning tobacco.

    Bakes said PMI envisions a smoke-free future by eliminating combustion, not necessarily tobacco or nicotine. The company aims to diversify its portfolio beyond smoking-related products into wellness and healthcare sectors, leveraging expertise gained from tobacco research. This transition includes exploring new smoke-free products beyond oral, tobacco-heating systems and vape options, according to Baker.

    The company’s acquisitions in drug manufacturing indicate a shift towards diverse offerings beyond tobacco. PMI foresees future innovative products based on scientific advancements and customer satisfaction across both device and consumable categories.

  • EU Commission Vows Tobacco Lobby Probe

    EU Commission Vows Tobacco Lobby Probe

    Image: bluedesign

    The European Commission said it would investigate the extent of its exposure to tobacco industry influence, following complaints about its inconsistent approach to tobacco lobbyists, reports Politico.

    In April, European Ombudsman Emily O’Reilly noted that the heightened controls and transparency requirements applied by the Commission departments in charge of health and customs policies are not necessarily implemented by other directorates-general.

    O’Reilly’s inquiry found that tobacco industry representatives met with officials from Commission departments in charge of agriculture, climate action, environment, trade, the internal market, among others. Minutes were often nonexistent of lacking detail.

    Article 5.3 of the World Health Organization’s Framework Convention on Tobacco Control instructs parties to protect public health polices from the tobacco industry’s commercial and other vested interests.

    The tobacco industry insists the Commission already applies this FCTC provision too broadly, noting that Article 5.3 does not prohibit discussions or engagement outright.  

  • Philippine Tax Reform Paid Off: Study

    Philippine Tax Reform Paid Off: Study

    Image: RODWORKS

    Repeated increases of “sin taxes” in the Philippines have not only driven down smoking prevalence, but also boosted the government’s health budget, reports The Philippine Star, citing a working paper published by the Institute for Leadership, Empowerment and Democracy.

    More than 10 years after the passage of the landmark 2012 Sin Tax Reform Law, the study found that sin tax reforms on alcohol, tobacco, e-cigarettes, vape and heated tobacco products have generated PHP1.1 trillion ($21.66 billion) in additional revenue above the 2012 baseline.

    The annual health budget increased six-fold to PHP309 billion in 2023 from PHP53 billion in 2013. Despite the higher taxes, cigarettes remain affordable, at PHP100 per pack and PHP5 per stick, according to the report.

    From 2012 to 2022, real value of tobacco production has grown by 6.6 percent. However, the researchers noted that these findings must be validated through individual-level surveys of tobacco farmers.

    Given the resilience of the tobacco business over the past decade, the author’s concluded that there is room for further tax increases.

  • Pakistan Unlikely to Meet Tracing Deadline

    Pakistan Unlikely to Meet Tracing Deadline

    Image courtesy of Syed Rashid Ali

    Pakistan is unlikely to meet the December deadline for full implementation of a new track-and-trace system for tobacco products, reports The News International.  

    While leading manufacturers, such as Pakistan Tobacco Co. (PTC), Philip Morris International and Khyber Tobacco Co. have incorporated the system into their production facilities, other manufacturers, including Civil Tobacco, Frontier Leaf Tobacco, Falcon Cigarettes Industry, Indus Tobacco Co. and Maneri Tobacco International, have done so only partially. Yet other companies have either refused to comply or dragged their feet, citing technical and financial difficulties.

     The partial implementation raises concerns about the effectiveness of the track-and-trace system, which relies on barcodes, unique identification numbers and a central monitoring system to track the movement of tobacco products from production to sale.

     “The track and trace system must be implemented across the industry for it to be successful and yield the desired results,” an industry official was quoted as saying. “Secondly, comprehensive and effective enforcement needs to be carried out to ensure that no pack of cigarettes is sold without a stamp.”

     The system has been successful in other countries, such as Turkey, Brazil and Kenya, where it has helped reduce tax evasion and illicit trade in the tobacco industry. Industry officials urged Pakistan’s Federal Board of Revenue to take strict action against the non-compliant manufacturers and enforce the system across the industry.

  • Zimbabwean Leaf Exports Top $1 Billion

    Zimbabwean Leaf Exports Top $1 Billion

    Photo: Taco Tuinstra

    Zimbabwe earned $1.2 billion from tobacco exports in 2023, compared to $975 million this previous year, reports The Herald.

    As of Dec. 15, the country had exported 233.9 million kg of the golden leaf, according to the Tobacco Industry and Marketing Board (TIMB). 

    The average price for the shipments was $5.23 per kg, up from $4.96 a kg during the same period in 2022. 

    In the comparable 2022 period, Zimbabwe shipped 196.57 million kg.

    The bulk of Zimbabwean tobacco is exported to countries in the Far East. In 2023, the nation shipped 109.45 million kg to that region, raking in $779.2 million at an average price of $7.12 per kg.

    Africa is the second largest consumer of flue-cured tobacco from Zimbabwe, having consumed 40.84 million kg valued at $141.6 million in 2023. 

    Despite the late onset of the rains and the decreased number of registered growers, stakeholders are optimistic about achieving the targeted 300 million kg crop in 2024.

    As of Dec. 15, 2023, the number of registered growers was 112,447, compared to 144,446 in the same period last year.

     Ninety-four percent of the registered growers are contracted.