Author: Taco Tuinstra

Commission to Propose EU-Wide Vaping Levy

Photo: Sergii Figurnyi
The European Commission (EC) wants to increase the minimum excise duty on cigarettes to €3.60 ($3.77) from €1.80 per pack of 20 and introduce a bloc-wide vaping levy, reports the Financial Times, citing a draft EC document.
If enacted, the legislation would double cigarette excise duties in EU member states with low cigarette taxes. In some eastern European nations, cigarette packs currently sell for under €3. Excise duties on cigarettes would also increase considerably in countries such as Austria and Luxembourg where prices are low relative to income. The tax rise on cigarettes is expected to generate an extra €9.3 billion for EU member states.
The update to the 2011 EU tobacco taxation directive will also bring the taxation of electronic nicotine-delivery systems into line with cigarettes. Stronger vaping products would have an excise duty of at least 40 percent applied to them while lower strength vapes will face a 20 percent duty. Heated-tobacco products will also be hit by 55 percent duty, or a tax rate of €91 per 1,000 items sold.
Rob Branston, senior lecturer in business economics and a member of the University of Bath’s Tobacco Control Research Group, told the Financial Times that the tax regime update was “long overdue” to increase prices in countries where cigarettes were “too cheap” and to catch up with inflation.
But Peter van der Mark, secretary-general of the European Smoking Tobacco Association, warned that a sudden steep increase in tax rates would likely boost illicit tobacco sales.
Dustin Dahlmann, president of the Independent European Vape Alliance, said that imposing taxes on novel tobacco products could lead to “the much less harmful alternatives” to smoking being “taxed far too heavily in many countries.”
The proposal will have to be agreed on by all EU member states before it is enshrined in law. BAT stressed that the EC draft proposal was “the beginning of a long legislative process.”
November 28, 2022
Snus Lovers up in Arms After EU Tax Proposal

Photo: Marko Hannula
Swedish snus lovers are up in arms after the publication of a leaked document suggesting the EU wants to force Sweden to raise the tax on snus by 200 percent.
The document, which was seen by the Swedish daily Aftonbladet, contains proposals for a new excise tax on tobacco.
If the plan becomes reality, the price of a can of portioned snus could increase by approximately SEK34 ($3.26). The price of a can of loose snus would increase by approximately SEK62 compared to today. A can of General loose snus would cost over SEK120 under the proposal.
Patrik Hildingsson, head of communications at Swedish Match, said that while Swedes are accustomed to high tax rates, the leaked EU proposal goes too far. He urged the Swedish government to make it clear to Brussels that Sweden alone regulates snus.
“Imagine if the EU decided to raise the tax on Italian Parma ham or German beer. This is basically the same thing,” Hildingsson was quoted as saying by Aftonbladet. “In the snus issue, the EU has chosen to disregard the principle of member state self-determination.”

“To dramatically increase the tax on snus will be a deadly blow to tobacco harm reduction and can make users go back to smoking.”
Bengt Wiberg, founder, EUforsnus
Meanwhile, snus advocates pointed to the health impact of snus, which is considerably less risky than other tobacco products.
“The Swedish Experience of snus has made Sweden almost smoke-free,” said Bengt Wiberg, founder of the EUforsnus international consumer group. “Daily smoking is now only 5 percent in Sweden as per the EU’s own Eurobarometer and thus Sweden has the lowest rate of all tobacco-caused cancers in Europe.
“To dramatically increase the tax on snus will be a deadly blow to tobacco harm reduction and can make users go back to smoking. I am sure the Swedish liberal/conservative government will even consider using its veto right within EU to stop this proposal.”
Finance Minister Elisabeth Svantesson indicated she would oppose the proposed tax hikes.
While snus is banned in the EU, Sweden obtained an exemption on cultural grounds when it joined the union in 1995. In the following years, however, the EU has made several attempts to restrict snus sales in Sweden, according to Aftonbladet.
The recent leaked proposal is scheduled to be published in early December. It must then be discussed and decided by the EU member states.
November 27, 2022
Netherlands Wants to Restrict Cigarette Sales to Tobacconists

Photo: jordi2r
The Dutch government plans to restrict sales of cigarettes to tobacconists within 10 years, reports the NL Times.
Supermarkets will have to stop selling tobacco products in 2024 while gas stations and convenience stores may continue selling them until 2030. Over the following two years, all nontobacconist stores will have to phase out tobacco sales.
Earlier this year, supermarket market leader Albert Heijn announced a trial with no tobacco sales at its Pijnacker store ahead of the 2024 ban. The pharmacy chain Kruidvat removed tobacco from sale in 2018, followed by Lidl Nederland.
The government also intends to further reduce the number of places where smoking is allowed. For example, it plans to ban smoking at playgrounds and sports parks from 2025.
In addition, the government wants to further increase the prices of tobacco products. Next year and in 2024, a pack of cigarettes will become €1.20 ($1.24) more expensive on average.
While cigarette prices in the Netherlands have risen steadily in recent years, they have remained stable in terms of affordability due to wage increases. On average, Dutch smokers consistently spent 2.5 percent of their annual income on cigarettes throughout that period.
The Dutch government aims for a “smoking-free generation” by 2040.
November 27, 2022
PMI Announces New Regional Structure
Photo: PMI
Philip Morris International has announced a new regional structure and related senior management changes.
“We are changing the company’s regional structure to further support the growth of our smoke-free business, reinforce consumer centricity and increase the speed of innovation and deployment—all in alignment with our ambition of becoming a majority smoke-free business by net revenues by 2025,” said PMI CEO Jacek Olczak in a statement.
“The new structure will also create new opportunities to further grow our senior talent, deepening the bench of leaders who will spearhead PMI’s progress toward a smoke-free future for the years to come. I am confident of the exceptional caliber and determination of our people and wish them the best in their new roles.”
By the end of January 2023, PMI will rearrange its operations in four regions, down from the current six, under the leadership of the following members of senior management:
Paul Riley, currently president of the East Asia and Australia region, will be appointed president of the East Asia, Australia and PMI duty-free region;
Frederic de Wilde, currently president of the European Union region, will be appointed president of the South and Southeast Asia, Commonwealth of Independent States (CIS), Middle East and Africa region;
Massimo Andolina, currently senior vice president of operations, will be appointed president of the Europe region; and
Deepak Mishra will continue as president of the Americas region.
Drago Azinovic, currently president of the Middle East and Africa and PMI duty-free region, will leave the organization after a transition period.
In addition, the following appointments will also take effect:
Marco Mariotti, currently president of the Eastern Europe region, will be appointed president of CIS, Central Asia and Israel, reporting to Frederic de Wilde;
Stacey Kennedy, currently president of the South and Southeast Asia region, will be appointed CEO of PMI’s U.S. business, reporting to Deepak Mishra; and
Scott Coutts, currently vice president of global manufacturing, will be appointed senior vice president of operations, succeeding Massimo Andolina and reporting to Jacek Olczak.
“We are changing the company’s regional structure to further support the growth of our smoke-free business, reinforce consumer centricity and increase the speed of innovation and deployment.”
Jacek Olczak, CEO, PMI
According to PMI, the new regional structure better aligns with the business strategy in the approximately 180 markets where the company’s products are sold. It is designed to accelerate smoke-free product growth in markets where IQOS already holds double-digit market shares while also driving the transition from cigarettes to smoke-free products in untapped markets, including the United States.
Furthermore, the new regional structure will support PMI’s efforts to broaden access to smoke-free products worldwide for those adults who would otherwise continue to smoke, including in low-income and middle-income markets, which the company aspires to account for at least half of the markets where its smoke-free products will be available by 2025. Each region will comprise individual markets as well as clusters of markets and will provide opportunities to accelerate career development within PMI’s diverse talent pipeline.
The company’s quarterly results reporting and related filings will reflect the new regional structure as of the first quarter of 2023.
November 26, 2022
Slovakia: Illegal Cigarette Factory Closed

Photo: Europol
Slovakian authorities uncovered an illegal cigarette factory while inspecting a poultry farm in Ubrez, reports the Slovak Spectator.
The Financial Administration detained 20 people from various Eastern European countries. Some had been charged for running illegal cigarette businesses before, according to police in Belgium, the Netherlands and Italy.
The Slovak operation, which produced pirated Marlboro, Richmond and Lambert & Butler cigarettes, had avoided an estimated €6.2 million ($6.42 million) in tax payments, according to authorities. In addition to millions of illegal cigarettes, law officials seized 32,000 kg of raw tobacco, production machinery and materials such as filters, tubes, adhesives, foils and packaging.
November 25, 2022
Vietnam Mulls Ban on Novel Tobacco Products

Photo: Michele
Vietnam’s health ministry has proposed a ban on next-generation tobacco products (NGPs), reports VN Express International. The country’s current law on tobacco harm prevention lacks provisions for e-cigarettes and heated-tobacco products.
According to Tran Thi Trang, deputy head of the Ministry of Health’s legislation department, a trial allowing the distribution of NGPs revealed potential negative impacts, including on youth behavior.
The percentage of people using e-cigarettes in Vietnam increased to 3.6 percent from 0.2 percent during 2015–2020, according to the health ministry.
With 15.6 million smokers, Vietnam ranks 15th in the world in terms of combustible cigarette users, the Legal Affairs Department at the Ministry of Information and Communications said. People in Vietnam spend an estimated VND49 trillion ($2 billion) per year.
November 24, 2022
PMI to Produce Terea Sticks in South Korea

Photo: PMI
Philip Morris International has started manufacturing Terea tobacco sticks for its IQOS Iluma heat-not-burn (HnB) devices at its Yangsan plant in South Korea, reports The Korea Times.
Unlike PMI’s Heets tobacco sticks, Terea sticks feature sealed tips that leave no residue, thus sparing consumers the inconvenience of cleaning their device after each use.
According to PMI, the Yangsan plant has International Organization for Standardization (ISO) certifications for quality management (ISO 9001), environmental management (ISO 14001) and safety and health management (ISO 45001).
The factory’s quality control team has obtained an internationally accredited testing agency certification from the Korea Laboratory Accreditation Scheme.
“All the workers at Philip Morris’ Yangsan plant in Korea are proud of the fact that they are producing high-quality noncombustible tobacco products such as Terea, which contributes to the realization of the company’s vision of a ‘future without cigarette smoke’ and the development of the national economy,” said Philip Morris Korea Director of Manufacturing Zia Ahmed Karim.
“We will continue to ensure quality control of our products and seek eco-friendly management in the future through providing better alternatives to adult smokers.”
The Yangsan plant, which marks its 20th anniversary this year, employs 600 people. Since 2017, PMI has invested more than KRW300 billion ($225.83 million) in the production of noncombustible products at the facility.
November 24, 2022
China to Restrict E-Cigarette Shipments

Photo: ikurdyumov
China’s State Tobacco Monopoly Administration (STMA) plans to limit the number of vapor products a person can carry on them, reports The Global Times.
According to a notice published Nov. 23, a person can possess a maximum of six “smoking devices,” 90 e-cigarette cartridges and 180 mL of e-liquid.
On the same day, the STMA and the State Post Bureau jointly announced restrictions on the delivery of vapor products. Each shipment may contain a maximum of two “sets,” six cartridges and 12 mL of e-liquid.
Each recipient is allowed to accept delivery of no more than one shipment of vapor products per day.
In April, China’s tobacco regulator approved mandatory national standards for e-cigarettes that came into effect in October.
November 23, 2022
Philip Morris Launches Bonds by IQOS

Photo: PMI
Philip Morris International has launched its latest heat-not-burn tobacco-heating system, Bonds by IQOS, along with its compatible tobacco sticks, Blends, in a pilot market in the Philippines. The company intends to further commercialize the product during the remainder of 2022 and next year.
Equipped with bladeless resistive external heating technology, Bond emits 95 percent less harmful chemicals compared to cigarettes, according to PMI.
“Bonds by IQOS represents another step forward in our ambition to replace cigarettes with innovative, science-based, smoke-free alternatives,” said PMI CEO Jacek Olczak in a statement.
“We know that no single smoke-free product will appeal to all adult smokers. Providing a range of alternatives to continued smoking—with a variety of taste, technology, usage and price options—is imperative and helps us to address a range of preferences as diverse as adult smokers themselves—ultimately encouraging them to leave cigarettes behind.
“Bonds by IQOS provides an opportunity to address consumer acquisition barriers for this segment, most notably up-front device costs and authentic tobacco taste satisfaction—providing further options of innovative smoke-free options to help ensure they do not go back to cigarettes. Through continuous innovation, we want to ensure that all adult smokers who would otherwise continue smoking switch and abandon cigarettes.”
According to PMI, Bonds by IQOS is designed to be used only with Blends tobacco sticks to deliver a variety of tobacco tastes. At the time of launch, Blends tobacco sticks will be available in five different flavors, including classic, menthol and aromatic. When fully charged, Bonds by IQOS delivers up to 20 uses, including three consecutive experiences. Bonds by IQOS comes in four different colors.
November 22, 2022
Greenbutts’ Filter Certified
Greenbutts has received the Hohenstein Quality Label for a novel biodegradable filter technology designed to replace the most littered single-use plastic item—cigarette filters.
“Receiving this certification of biodegradability from Hohenstein is validation of all the hard work over the past decade to develop and optimize our Greenbutts filter technology to be a truly eco-friendly replacement for cellulose acetate,” said Greenbutts CEO Tadas Lisauskas in a statement.
“We are excited to offer this certified material to a variety of filtration media products in the near future to help eradicate single-use synthetics used in the filtration industry.”
“We have put our best minds toward delivering a transformative solution for the global tobacco industry,” said Greenbutts Chief Strategy Officer Luis Sanches. “Our world demands high corporate responsibility coupled with measurable impact, and no matter where our customers may be, we all can do our part.”
Using patented material science, Greenbutts filters are biodegradable, plastic-free and water dispersing. According to the company, Greenbutts filters will disperse in water within a few minutes and will degrade in compost within days as opposed to 10–15 years as is the case with traditional cellulose acetate filters.
November 22, 2022