Author: Marissa Dean

  • Smoking Control Bill Poised for First Reading

    Smoking Control Bill Poised for First Reading

    Credit: Gerey

    Malaysia’s Control of Smoking Product for Public Health Bill 2023 will be tabled in Parliament on June 12, reports New Straits Times. The bill includes the generational endgame (GEG) smoking ban, which bans tobacco sales to those born on Jan. 1, 2007, or later.

    “We will table the bill for its first reading in Parliament on June 12,” said Health Minister Zaliha Mustafa. Mustafa also noted that the “improved” bill was drafted after numerous engagement sessions with stakeholders.

    “I will be meeting with the Parliamentary secretary and the Dewan Rakyat Speaker (on the date for the second reading), and we will see how we can go from there,” said Mustafa.

    The bill is reportedly “more comprehensive” than a previous version and also covers “next-generation” smoking products.

    Once passed, the bill would prohibit those that fall under the GEG provision from obtaining and using all types of conventional cigarettes, cigars, loose tobacco and rolled cigarettes. Heated products, however, will not be fully banned until after sufficient education and awareness campaigns have been launched by the ministry.

    “This is our soft-landing approach to educate the GEG cohort instead of being punitive,” said Mustafa, referring to an earlier, stricter version of the proposal. “For now, we are suggesting that the law be fully implemented (to include all types of smoking products, including electronic cigarettes) in 2030, after conducting further research and studies.

    “We think this is a win-win solution. The government is committed to the implementation of the GEG,” she added.

  • Australia: Tougher Tobacco Laws Coming

    Australia: Tougher Tobacco Laws Coming

    Image: Tobacco Reporter archive

    Australia will face tougher tobacco regulations in the next two years if legislation proposed by Health Minister Mark Butler is adopted, according to ABC News.

    The proposed legislation calls for a standardized size for tobacco packets and products, a standardized design for filters, health warnings on individual cigarettes, public health information in loose-leaf and cigarette packets, a ban on flavors and additives like menthol, and a restrictions on certain names used on packaging.

    “[There are] names that are designed to mislead users, [that suggest] the cigarettes they are using are somehow going to be good for them, names like smooth or fresh burst,” Butler said. “These things are a cynical deliberate marketing strategy to bring new smokers into this public health menace and will be prohibited in this legislation.”

    “The legislation that was put in place by former minister Nicola Roxon had a sunset date of April 1, 2024,” Butler said. “So if we do not pass replacement legislation, the current suite of regulations around plain packaging, graphic warnings and the like will lapse on April 1, so we intended to get this legislation passed by the Parliament before April 2024.”

  • Updates to Tobacco Settlement with DOJ

    Updates to Tobacco Settlement with DOJ

    Image: Tobacco Reporter archive

    Altria, Philip Morris USA, ITG Brands and R.J. Reynolds Tobacco Company sent notices to their retail partners regarding an update on a Department of Justice (DOJ) requirement to supply court-ordered signs to stores that have contracts with the companies, reports NACS.

    A settlement agreement between the DOJ and Altria, Philip Morris USA and R.J. Reynolds Tobacco Co. and four cigarette brands owned by ITG Brands was formally approved by a D.C. court in December, resolving litigation over communications of tobacco-related messaging at retail locations. 

    The court order requires retail outlets that have contracts with any of these companies to post signs carrying one of 17 different preapproved health messages, distributed at random, for a total of 24 months. Each store will be required to rotate to a new message halfway through the time period. The manufacturers will be required to hire auditors to check that the signs are posted correctly.

    The notices sent by the companies include amendments to each of the company’s retail merchandising agreements, required by the consent order; additional details around placement of corrective-statement signs at retail; and a summary of implementation activities during the initial posting period.

    The court order takes effect July 1, 2023, and tobacco firms have three months to post the corrective statements in both English and Spanish in stores.

  • South Africa: New Tobacco Tax

    South Africa: New Tobacco Tax

    Image: Tobacco Reporter archive

    Nicotine substitute solutions, including vaping products, are now subject to an excise duty of ZAR2.90 ($0.15) per mL in South Africa, effective June 1, reports Business Tech.

    The forms that govern tobacco product excise have been amended to account for vaping products, according to the South African Revenue Service (SARS).

    Manufacturers were required to apply for and obtain licenses from SARS for manufacturing premises before June 1, 2023, and must submit the first excise duty account by July 28, 2023.

    “The tax will be detrimental to those using vaping to stop smoking as well as local small businesses—doing more harm than good,” said Kurt Yeo, co-founder of consumer group Vaping Saved My Life (VSML). “At face value, the tax will move the consumer to the intended purpose of vaping less. But with many of those who vape having switched from smoking to this safer alternative and now having to pay far more for the privilege, they might be forced to revert to smoking as a cheaper option.”

    “Moreover,” said Yeo, “the excise overlooks that vaping is the most effective method for smoking cessation. So those who smoke and want to make the change will be dissuaded purely based on the price and will have to continue using the deadliest consumer product on the market, cigarettes.”

    Many believe that the tax will lead to an increase in illicit products and growth of the black market, according to DFA.

    “This tax is (also) going to wipe out a lot of small vaping businesses, and there is already evidence that it is promoting a black market for vaping products,” said Yeo.

  • Decline in Egyptian Smokers

    Decline in Egyptian Smokers

    Image: Tobacco Reporter archive

    The percentage of smokers in Egypt decreased from 17.3 percent in 2020 to 16.8 percent in 2022, according to surveys conducted by the Central Agency for Public Mobilization and Statistics (CAPMAS), reports Egyptian Streets.

    The data shows that smoking is more prevalent among men, with 33.8 percent of males over the age of 15 being smokers compared to 0.3 percent of women. The age group with the highest smoking rates was 35–45 years old (22.1 percent) followed closely by the 45–54 age range (21.6 percent).

    Among those aged 15 to 24, 11.7 percent smoke. There was no significant difference between smoking rates in urban and rural areas.

  • New Zealand to Address Youth Vaping

    New Zealand to Address Youth Vaping

    Image: Tobacco Reporter archive

    New Zealand Health Minister Ayesha Verrall is set to unveil the government’s strategy to address youth vaping, reports Stuff.

    While an outright ban on cheap, disposable vapes or making them prescription-only has not been promised, Verrall aims to strike a balance between using vaping as a smoking cessation tool and preventing its appeal to young people.

    The Australian government recently banned the importation of vapes except through pharmacies and introduced quality standards. Verrall did not confirm if New Zealand would follow suit, but she emphasized the need for a vaping policy that aligns with the country’s specific needs.

    Proposed regulations include restricting the location of specialist vape retailers near schools or sports grounds, regulating vape flavor names and implementing safety measures for single-use vaping products. Some experts suggest further measures, such as educating young people and limiting availability to pharmacies.

    The regulation of vaping products and retailers was not included in the previously passed legislation to ban tobacco sales to a generation.

    The government also plans to reduce the number of places selling tobacco products from 6,000 to 600 as part of their Smoke-Free 2025 action plan.

  • Proposed Increase in E-Cig Import Duties

    Proposed Increase in E-Cig Import Duties

    Image: johan10 | Adobe Stock

    Bangladesh Finance Minister Mustafa Kamal proposed a significant increase in import duties on e-cigarettes and their parts in the proposed budget for the 2023–2024 fiscal year, reports the Dhaka Tribune.

    The import duty on e-cigarettes will be raised from 5 percent to 25 percent, and for parts of electric cigarettes, the duty will be increased by 100 percent. Previously, there was no import duty on the parts of electric cigarettes.

    The minister has also suggested a 150 percent additional duty on liquid nicotine and transdermal nicotine.

    The proposed measures aim to increase import duties and make importation of e-cigarettes and related components more expensive in an effort to regulate their use and reduce their prevalence.

  • Anti-Smoking Measures Urged in Settlements

    Anti-Smoking Measures Urged in Settlements

    Image: Tobacco Reporter archive

    Three national health organizations in Canada, the Canadian Cancer Society, the Canadian Lung Association and the Heart and Stroke Foundation, are urging the country’s premiers to prioritize initiatives aimed at reducing smoking during settlement negotiations with major tobacco companies, reports The Globe and Mail.

    These negotiations have been ongoing for four years following the provinces’ lawsuits seeking $500 billion in damages to recoup healthcare costs. The health organizations argued that tobacco use imposes a devastating toll on disease and death, contributing to the healthcare system’s ongoing crisis. They recommended that at least 10 percent of any settlement funds be dedicated to long-term independent funding for smoking reduction efforts. Additionally, they called for a ban on tobacco promotion by the industry, measures to hold the defendants accountable if tobacco use reduction targets are not met and the public disclosure of internal documents by the companies.

    While the negotiations are ongoing, and the precise plans are confidential, the health organizations believe this is a historic opportunity to control the tobacco industry and significantly reduce tobacco use. They emphasize the connection between tobacco use and multiple diseases, including 16 types of cancer.

    In the negotiations, all provinces are required to agree to any settlement, giving the government leverage to negotiate stringent measures. The health organizations also express disappointment that they have been excluded from the closed-door negotiations, contrasting it with the involvement of all 50 states in a similar settlement with tobacco companies in the United States in 1998, which resulted in the funding of an independent American foundation to oversee the industry and the disclosure of millions of previously secret documents.

  • Coordinate Fight Against Illicit Trade

    Coordinate Fight Against Illicit Trade

    Image: Tobacco Reporter archive

    South Africa needs to enhance its coordination and enforcement efforts in combating illicit trade, which has been increasing in the country, according to the report Organised Crime, Corruption and Illicit Trade, reports The Sunday Times.

    Esteban Giudici, a policy adviser at the Transnational Alliance to Combat Illicit Trade (Tracit), emphasized that South Africa lacks effective implementation of laws and resources to address illicit trade. The problem is not treated as a comprehensive criminal phenomenon affecting all sectors, which allows criminals to exploit opportunities. The report identifies several sectors, including alcohol, illegal mining, counterfeit goods, falsified medicine, fuel, wildlife trafficking and tobacco, as particularly vulnerable to illicit trade. Giudici stressed the importance of improving coordination, as criminal networks involved in illicit trade operate across multiple countries.

    Tracit conducts research on illicit trade and transnational crimes and supports companies and governments in their efforts to combat these crimes. South Africa’s recent gray-listing by the Financial Action Task Force is expected to hinder the government’s post-Covid-19 recovery efforts and investment attraction. Effectiveness in implementing existing laws to combat money laundering, which is closely linked to illicit trade, is crucial. The report recommends that the South African government strengthen coordination, criminal penalties and law enforcement to address the issue effectively. The gray-listing could lead to a contraction of up to 7.6 percent in the country’s GDP, according to estimates by the International Monetary Fund.

  • EU Struggling with Counterfeits

    EU Struggling with Counterfeits

    Counterfeit tobacco products
    Photo: British American Tobacco

    Spanish police conducted raids on three clandestine tobacco factories earlier this year, resulting in the seizure of nearly €40 million ($44 million) worth of tobacco leaf and illicit cigarettes, reports Reuters. One of the factories, located in Alfaro, housed 10 Ukrainian workers, including war refugees, who were forced to work without contracts and receive meager pay. They were not allowed to leave the premises, living and working in the factory under exploitative conditions. This operation reflects a larger trend seen across the European Union, where law enforcement agencies report a surge in seizures of illicit cigarettes.

    Criminal organizations traditionally imported counterfeit tobacco products from outside the EU. However, they are now establishing production facilities in western Europe to be closer to lucrative markets with higher prices. The Covid-19 pandemic, which disrupted travel and supply chains, along with the ongoing war in Ukraine—a hub for illicit tobacco production and transit—have further fueled this trend. The rise in counterfeiting presents financial challenges to major tobacco companies as they face declining smoking rates and increasing investments in alternative products such as vapes.

    Last year, the EU recorded a record-breaking 531 million seizures of illicit cigarettes, marking a 43 percent increase from the previous year. Around 60 percent of the confiscated cigarettes originated from illicit production within the EU while the rest were smuggled in. To combat this problem, tobacco companies like BAT, Imperial Brands and Japan Tobacco have hired investigators to gather information on counterfeit operations and share intelligence with European authorities.

    The industry has declined to disclose the financial impact of the illicit trade, but it is evident that they are taking significant measures to protect their brands and combat illegal activities. Counterfeiters typically replicate popular cigarette brands, and the production cost of a pack of cigarettes is relatively low compared to its market value, leading to substantial profits for criminals. The decline in supplies from China and Asia due to the pandemic has spurred an increase in production within Europe itself. The situation has been further complicated by the war in Ukraine, which disrupted the illicit tobacco trade routes. Many counterfeiters reportedly exploit vulnerable Ukrainian refugees, subjecting them to harsh working conditions akin to “modern-day slavery.”