Author: Marissa Dean

Bangkok to Impose Tobacco Tax

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According to the Bangkok Metropolitan Administration (BMA), the city will implement its first-ever tobacco tax. The new structure will tax each cigarette up to THB0.10 ($0.003) satang per stick, according to Thaiger.
The Tobacco Tax for Local Maintenance is intended to limit tobacco consumption, and the tax collected will be used “for maintenance of Bangkok city,” according to Suthathip Son-iam, permanent secretary of the BMA.
Other jurisdictions in Thailand already have tobacco taxes in place, and many companies previously warehoused their cigarettes in Bangkok to avoid paying taxes prior to distribution.
“The new tobacco tax can be announced after the city finished amending the Bangkok Administration Act of 1985 to include tax collection and other related clauses under the Plans and Process of Decentralization to Local Government Organization Act of 1999,” according to Son-iam. Previous attempts to amend the act failed.
There is no date for the tax’s introduction as of yet; the Cabinet must approve it first.
May 6, 2022
Hong Kong Police Make First E-Cig Ban Arrests

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Hong Kong police arrested two men, who are being held in custody under suspicion of selling and possessing a poison in Part 1 of the Pharmacy and Poisons Regulations as well as selling alternative smoking products, according to a report in the South China Morning Post. The arrests follow the implementation of a new e-cigarette ban.
The new law went into effect last weekend, banning the import, sale and manufacture of electronic cigarettes, heated-tobacco products and herbal cigarettes. Those caught breaking the law are subject to a maximum fine of HKD50,000 ($6,370) and six months’ imprisonment. Under the law, consumers are still allowed to use vaping products.
Police seized 94 boxes of suspected nicotine-containing electronic cigarette cartridges and 74 smoking devices from a mobile retail outlet in Mong Kok.
“The government appeals to smokers to quit smoking as early as possible for their own health and that of others,” said a Department of Health spokesperson.
May 6, 2022
Hausmann Retires From Pyxus International

Photo: jovannig | Adobe Stock
Carl L. Hausmann intends to retire from the Pyxus International’s board of directors effective as of the 2022 annual shareholders meeting, according to a company press release.
Hausmann was appointed to Pyxus’ board of directors in October 2020 and serves on the environmental, social, governance and nominating committee as well as the audit committee. Additionally, Hausmann served as a member of the board of directors of Pyxus International’s predecessor, Alliance One International, from June 2013 to August 2018.
“On behalf of the board of directors, as well as Pyxus’ management team, we thank Carl for his guidance and many contributions over the years,” said Pyxus President and CEO Pieter Sikkel. “His extensive experience in the agricultural industry, thorough understanding of our operations and support of our ESG framework has been instrumental in establishing the foundation necessary to position Pyxus for success moving forward. It has been a privilege to work with Carl during both of his board appointments, and we wish him all the best in the years to come.”
The board of directors plans to fill Hausmann’s seat with an independent director, though this may not occur until after the company’s 2022 annual shareholders meeting.
May 6, 2022
Philippines: Illegal Cigarettes Cost Country Billions of Pesos

Photo: Tobacco Reporter archive
The Philippine government is losing about PHP26 billion in taxes annually due to illicit cigarettes, according to The Manila Bulletin.
About 13 percent of cigarettes sold in the Philippines are illegal, stated PBA Party-List Representative Jericho Jonas B. Nograles, citing a Euromonitor International report.
“Euromonitor estimates [that] in some areas in Mindanao, six of 10 cigarettes sold in retail are illegal,” Nograles said.
Outside Mindanao, illegal tobacco trade is prominent in Bataan (31.6 percent), Palawan (24.8 percent), Nueva Ecija (22.2 percent) and Zambales (11.5 percent).
In 2021, the Bureau of Internal Revenue (BIR) collected nearly PHP180 billion in excise taxes from the tobacco industry. The BIR also estimated that the government lost PHP3.8 billion in revenue from 2018 to 2021 due to illicit trade.
Meanwhile, the Customs’ apprehensions on illicit tobacco products reported foregone excise taxes of PHP2.9 billion from 2019 to 2022.
April 8, 2022
EU Rules Thwart Danish Plan to Restrict Smoking

Photo: Zerbor
The Danish government’s plan to ban those born after 2010 from buying nicotine products has been blocked by the European Union’s rules, reports EURACTIV.
The Danish government’s health reform package was introduced in March of this year but immediately faced feasibility questions.
EU rules make it impossible for member states to ban or restrict tobacco marketing. “The ministry of health, therefore, considers that a ban on the sale of tobacco and nicotine products to people born in 2010 or later would require an amendment to the European Tobacco Products Directive,” wrote Health Minister Magnus Heunicke in a parliamentary answer earlier this week.
April 8, 2022
Myanmar to Implement Standardized Packaging

Photo: Taco Tuinstra
Myanmar is set to implement the Standardized Packaging Notification that was issued by the country’s Ministry of Health Oct. 12, 2021, according to Eco-Business.
The notification will go into effect April 10, 2022, followed by a 90-day phase out period for old tobacco packaging; old packaging must be phased out by July 12, 2022.
New packaging must be a standardized dull dark brown color, be flat, smooth and devoid of any attractive colors, designs or decorative elements. Pictorial health warnings are required to cover 75 percent of the packaging’s front and back surfaces. Tobacco product packages include boxes, cases, cartons, etc.
“With standardized packaging, Myanmar will be implementing a highly effective public health policy that will help denormalize tobacco use,” said Ulysses Dorotheo, executive director of the Southeast Asia Tobacco Control Alliance. “We look forward to the full and strict implementation of this regulation and call on the government to swiftly identify and penalize any tobacco company that does not comply by the April 10 deadline.”
“Standardized packaging is a cost-effective and strategic way to discourage tobacco use; it prevents the tobacco industry from using packaging to attract consumers in a creative but deceptive way. Pictorial health warnings more effectively convey to the public the dangers of tobacco use,” said Dorotheo.
April 8, 2022
Study: Vape Bans Lead to More Smoking

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A new study in Value in Health shows that local vape bans are leading to higher rates of combustible cigarette smoking, according to Filter.
The study used state-level cigarette sales data, showing that Massachusetts had 7.5 percent higher than expected per capita cigarette sales following a full ban on nicotine vapor products. Rhode Island and Washington, which both enacted nontobacco-flavored nicotine vape bans, showed an average estimate of 4.6 percent higher than expected per capita cigarette sales.
Researchers suggested that an additional 3.4 million cigarette packs were sold through convenience stores in those states during the three-month study period.
The study was funded by Juul Labs.
April 8, 2022
Canada Proposes Federal Vape Tax

Photo: Roman R
The Canadian government has proposed the country’s first federal vape tax, which would take effect Oct. 1 if passed, according to Vaping360.
The tax applies only to nicotine-containing products, including pod-style and cartridge-style refills, disposable vapes and bottled e-liquids as well as nicotine base for DIY liquids. It does not apply to hardware that is sold without e-liquids. The tax also includes an option for Canadian provinces to add on their own, equally large, taxes.
Vaping products would see a tax of CAD1 ($0.97) per 2 mL for the first 10 mL of e-liquid in any sealed container and $1 per 10 mL for additional liquid in the same container. Sealed pods would be taxed separately at a minimum of $1 per pod.
Retailers would have until Jan. 1, 2023, to sell any untaxed stock they still have on Oct. 1 when the law would go into effect.
The tax is awaiting a vote by Parliament’s House of Commons, which is expected to take place either at the end of April or beginning of May.
April 8, 2022
PactAct POS Wants to Help Businesses

Photo: PactAct POS
The Prevent All Cigarette Trafficking (PACT) Act has caused issues for some businesses trying to navigate the new regulatory landscape. PactAct POS is offering cloud-based software that includes integration with major e-commerce platforms like Shopify, BigCommerce and WooCommerce in hope of helping businesses remain in operation legally, according to a company press release.
“Pact Act vape compliance can be an overwhelming process for companies,” explained Terrence Johnathan, vice president of shipping and logistics for PactAct POS. “In some cases, the requirements are causing small businesses to shut down or stop shipping directly to consumers, which is hurting both consumers and manufacturers.”
PactAct POS provides registration, reporting, shipping and logistics, and government relations services.
PactAct POS is also releasing the PACT Act Survival Guide for 2022, a free e-book that focuses on PACT Act planning and strategies for 2022 and beyond.
“There are so many hoops to jump though,” said Johnathan. “We’ve worked with clients dealing with the vape mail ban [and] every kind of scenario, and we’ve been with them every step of the way. These companies don’t have to go at it alone. They just need to ask for help.”
PactAct POS is a cloud-based platform that automates PACT Act compliance for more than 250 businesses.
March 18, 2022
Denmark to Consider Sales Ban for Those Born After 2010

Photo: Tobacco Reporter archive
Denmark is considering a tobacco sales ban for anyone born after 2010, reports The Guardian and Geo News.
“Our hope is that all people born in 2010 and later will never start smoking or using nicotine-based products,” Health Minister Magnus Heunicke said. “If necessary, we are ready to ban the sale (of these products) to this generation by progressively raising the age limit.”
The current age of purchase is 18 years old. The health ministry stated that about 31 percent of 15-year-olds to 29-year-olds smoke.
A Danish Cancer Society poll showed that 64 percent of those surveyed were in favor of the proposed ban, with 67 percent being between the ages of 18 and 34.
Denmark’s proposed ban would be similar to that recently enacted in New Zealand, which will progressively raise the purchase age limit.
March 18, 2022