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  • UK Vaping Duty Expected to Generate £565M by 2030

    UK Vaping Duty Expected to Generate £565M by 2030

    The UK will introduce its new Vaping Products Duty (VPD) on October 1, applying to all vaping liquids, including nicotine-free products. The measure is expected to significantly boost government revenue, with vaping duty receipts projected to rise from £135 million in fiscal 2026/27 to £565 million by 2030/31.

    Under the new rules, travelers aged 17 and older entering Great Britain will be allowed to bring in up to 50ml of vaping liquid duty-free for personal use. Anyone carrying more than 50ml must declare the products and pay duty on the entire quantity, not just the excess amount.

    Northern Ireland will operate under different arrangements due to its access to the EU goods market. Travelers arriving directly from EU countries may continue bringing unlimited quantities of vaping liquid for personal use without paying duty, while arrivals from non-EU countries remain subject to existing personal goods allowances.

    The new duty and traveler limits are expected to affect duty-free retailers serving UK-bound passengers, potentially reducing purchase volumes and prompting adjustments to product assortments. HMRC has urged retailers and stakeholders to provide clear passenger guidance to minimize border non-compliance.

  • Vermont Tightens Tobacco Regulations

    Vermont Tightens Tobacco Regulations

    Vermont enacted sweeping changes to its tobacco and nicotine regulatory framework, effective July 1. The legislation expands statutory definitions to include “tobacco substitutes” and significantly increases licensing costs, with tobacco license renewal fees rising from $110 to $1,000 and tobacco substitute endorsement fees increasing from $50 to $1,000.

    The law also raises civil penalties and prohibits the marketing, branding, labeling, advertising, distribution, or sale of tobacco products or tobacco substitutes that imitate non-tobacco consumer products, a measure aimed at reducing youth appeal.

    Under the new tax structure, tobacco substitutes containing less than 5 mg of nicotine per gram will be taxed at 92% of the wholesale price, while products containing 5 mg per gram or more will face a 100% wholesale tax rate.

    To strengthen enforcement, Vermont is creating a permanent Investigator position within the Department of Liquor and Lottery to oversee compliance and investigate violations related to direct-to-consumer sales and delivery of alcohol and tobacco products. The state has appropriated $160,000 from the Tobacco Litigation Settlement Fund for fiscal year 2027 to support the new enforcement role.

  • Illinois Caps Premium Cigar Taxes

    Illinois Caps Premium Cigar Taxes

    Illinois is the latest U.S. state to implement a tax cap on premium handmade cigars after Governor JB Pritzker signed the state’s FY2027 budget legislation into law this week. The measure caps state tax on premium handmade cigars at $0.75 per cigar and applies to both in-state and remote sales, beginning January 1, 2027. Industry groups said the change is intended to reduce the tax burden on premium cigar retailers and consumers while improving tax parity within the category.

    The legislation follows years of advocacy by the Premium Cigar Association, Cigar Rights of America, and the Cigar Association of America. Industry representatives said the successful campaign was supported by economic analysis developed by the PCA and CAA examining the projected effects of cigar tax caps.

  • Study Smoking Rates Impacted by Social Norms

    Study Smoking Rates Impacted by Social Norms

    A new study from the University of California San Diego developed a quantitative tool to measure public attitudes toward smoking restrictions and secondhand smoke exposure across the United States over the past 30 years. Researchers analyzed responses from 1.5 million participants in the Tobacco Use Supplement to the Current Population Survey between 1992 and 2022, creating a “Willingness to Restrict Smoking” (WTRS) scale. The measure captures public support for smoking restrictions in settings such as hospitals, workplaces, restaurants, shopping malls, bars, playgrounds, and casinos.

    The study, led by David Strong and published in BMJ Public Health, found that states with stronger support for smoking restrictions generally had lower smoking rates. Support for smoke-free environments increased steadily over the three-decade period, with hospitals and playgrounds receiving the highest levels of support for smoking bans.

    According to the researchers, the findings provide evidence that tobacco control strategies focused on changing social norms around smoking and secondhand smoke can contribute to declines in smoking prevalence. The WTRS scale is intended to give public health officials and tobacco control programs a new tool to evaluate whether policies and public education campaigns are successfully shifting attitudes toward smoking.

    Source: UC San Diego Today

  • National Rally Set to Oppose EU Tobacco Tax Report

    National Rally Set to Oppose EU Tobacco Tax Report

    France’s Jordan Bardella confirmed that National Rally will vote against a European Parliament report on the revision of the EU’s Tobacco Excise Directive (TED), despite the measure being drafted by Czech MEP Tomáš Kubín from the party’s own Patriots for Europe alliance.

    According to Euractiv, the report rejects the European Commission’s proposal for higher taxes on newer nicotine products such as e-cigarettes, heated tobacco products and nicotine pouches, while supporting higher taxation of traditional cigarettes. Most members of Patriots for Europe, along with the European People’s Party and European Conservatives and Reformists, are expected to support the text, while Socialists, liberals, Greens, and the Left oppose it.

    Bardella said National Rally would vote against the report because it could lead to additional taxation in France, citing concerns about consumer purchasing power. Euractiv reported that the party’s opposition could jeopardize the narrow majority needed for Parliament to adopt an official position on the file, as National Rally controls around 30 seats in the chamber.

    If the report fails, it could strengthen the European Commission’s position in future negotiations by leaving Parliament without a formal stance on the tobacco tax overhaul. The Commission is seeking higher excise taxes on emerging nicotine products and additional revenue for the EU budget, while several member states argue reduced-risk products should be taxed less heavily than cigarettes. According to Euractiv, Bardella’s position could therefore have the unintended effect of aiding efforts to increase EU-wide taxes on vaping and other smoke-free products.

  • Malawi’s Tobacco Sales Drop 28% in First Eight Weeks

    Malawi’s Tobacco Sales Drop 28% in First Eight Weeks

    Malawi’s tobacco industry generated MK223.4 billion ($129.6 million) in sales during the first eight weeks of the 2026 marketing season, according to the Tobacco Commission. A total of 62.1 million kg of tobacco was sold at an average price of MK3,588 ($2.08) per kg.

    The Tobacco Commission said market performance remained stable despite lower volumes and earnings compared with the same period in 2025, when 72.7 million kg were sold for MK309.3 billion ($179 million), marking a nearly 15% reduction in volume and 28% reduction in earnings.

    By week eight, the overall rejection rate across auction and contract sales stood at 5.5%. Contract burley tobacco recorded a rejection rate of 2.8%, while auction burley rejection reached 64%.

  • Zimbabwe Cracking Down on Fake Tobacco Seed

    Zimbabwe Cracking Down on Fake Tobacco Seed

    Zimbabwe intensified enforcement against counterfeit and illegally imported tobacco seed as farmers establish seedbeds for the 2026/27 season following the opening of the tobacco planting window on June 1. Agriculture Permanent Secretary Obert Jiri described the distribution of fake seed as “agro-terrorism,” warning that it threatens crop productivity, farmer incomes, and the integrity of Zimbabwe’s tobacco industry. He said the country produces sufficient tobacco seed locally through the Tobacco Research Board and licensed seed companies and has no need for unauthorized imports.

    Authorities warned that individuals found importing or distributing unapproved tobacco seed varieties could face legal action. Kutsaga Research CEO Frank Magama said Zimbabwe’s certified seed system is based on extensive testing and breeding programs designed to deliver high yields, leaf quality, and disease tolerance under local growing conditions.

  • NSW Premier Backs Review of Tobacco Excise Tax

    NSW Premier Backs Review of Tobacco Excise Tax

    New South Wales Premier Chris Minns called for a rethink of Australia’s tobacco excise policy, arguing that repeated tax increases are fueling the growth of the illicit tobacco market. Minns said the excise was “actually creating a black market for cigarettes,” making illegal products cheaper and more accessible than intended under tobacco control measures.

    His comments align with those of politician Pauline Hanson, who this week urged the federal government to cut tobacco excise rates to undermine criminal groups profiting from illicit cigarette sales. Hanson argued that continued excise increases are creating incentives for organized crime and called for stronger customs enforcement.

    The debate follows new data from the Australian Bureau of Statistics estimating that nicotine consumption rose nearly 40% between 2017 and 2025, driven largely by growth in illicit cigarettes, e-cigarettes, and other nicotine products. The report estimated illicit products accounted for 80% of nicotine consumption in 2025, up from 12% in 2017.

    The issue has become increasingly prominent as Australia faces an ongoing illicit tobacco-related crime wave. More than 125 firebombings in Victoria have been linked to disputes over the illegal tobacco trade. Meanwhile, federal budget projections show tobacco excise revenue falling from A$7.8 billion ($5.5 billion) in 2024-25 to A$4.1 billion ($2.9 billion) in 2025-26, despite excise rates continuing to rise. Australia’s tobacco excise increased again in March to A$1.53 ($1.09) per cigarette stick, with a further increase scheduled for September.

  • Bangladesh Health Advocates Criticize Tobacco Tax Measures

    Bangladesh Health Advocates Criticize Tobacco Tax Measures

    Public health advocates panned Bangladesh’s proposed FY2026-27 budget, saying it falls short of introducing tobacco tax reforms that would reduce consumption or significantly boost revenue. Speaking at a post-budget press conference organized by the Dhaka Ahsania Mission, critics said the small increase in low-tier cigarette prices and unchanged taxes on bidis, zarda, and gul would make tobacco products more affordable in real terms as inflation and incomes rise.

    Advocates noted that low-tier brands account for nearly 75% of the cigarette market and proposed merging the low and medium tiers, increasing prices, and introducing a specific supplementary duty. They estimate the measures could generate an additional Tk44 billion ($356 million) in revenue and prevent about 400,000 premature deaths over time.

    The group also warned that taxing nicotine pouches and heated tobacco products without banning them effectively legitimizes emerging nicotine products. Bangladesh reports having an adult tobacco-use rate exceeding 35%, with tobacco-related diseases causing nearly 200,000 deaths annually.

  • BAT Repositions Vuse Alto on U.S. Price Tier

    BAT Repositions Vuse Alto on U.S. Price Tier

    British American Tobacco is repositioning its Vuse Alto vaping brand deeper into the U.S. mass market through lower retail pricing and promotional offers, according to industry channel checks cited by Ad Hoc News. Starter kits have been promoted for under $10 at some convenience chains, alongside discounted multi-pack pod offers aimed at adult smokers switching from cigarettes.

    The strategy, according to the report, strengthens Alto’s role as BAT’s core mid-priced closed-system vape product and supports the company’s broader effort to grow revenue from reduced-risk products. Vuse remains a key contributor to BAT’s New Categories business, with the company relying on pricing, retail distribution and repeat pod sales to drive volume growth in the highly regulated U.S. vapor market.