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Category: Around the Industry

  • Health System Settles Tobacco-Fee Suit

    Health System Settles Tobacco-Fee Suit

    Nonprofit health system Advocate Aurora Health agreed to settle a proposed class action lawsuit alleging it unlawfully imposed a tobacco-use surcharge on employees enrolled in its health insurance plan. The lawsuit, filed in federal court in Illinois, claimed the health system violated federal benefits laws by charging workers an additional fee if they used tobacco without fully complying with requirements tied to wellness program incentives.

    The plaintiffs argued that employees were not provided adequate alternatives to avoid the surcharge, as required under federal regulations governing employer-sponsored health plans. Terms of the settlement were not immediately disclosed in the court filing, but the agreement would resolve claims brought on behalf of affected employees and avoid further litigation.

  • 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.

  • 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.

  • 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.

  • EPP Accused of Being Tobacco ‘Mouthpiece’ Ahead of Vote

    EPP Accused of Being Tobacco ‘Mouthpiece’ Ahead of Vote

    An article published by Euractiv today (June 16) reports that the European People’s Party (EPP), the largest group in the European Parliament, is facing criticism from public health organizations and political opponents ahead of a key vote on EU tobacco policy, with critics accusing the party of advancing positions aligned with the tobacco industry. The dispute centers on the European Commission’s ongoing review of the Tobacco Products Directive (TPD), including potential new rules for nicotine pouches, vaping products and other reduced-risk alternatives.

    According to Euractiv, health advocates argue the EPP has opposed stricter restrictions on newer nicotine products, while the EPP maintains that regulation should be evidence-based and account for harm reduction. The debate comes as the EU considers significant revisions to tobacco and nicotine regulations that could affect product availability, taxation and market access across the bloc.

  • NACS Calls for Fact-Based Approach in EU Tob. Directive Review

    NACS Calls for Fact-Based Approach in EU Tob. Directive Review

    The National Association of Convenience Stores (NACS) urged European Union policymakers to conduct a comprehensive socio-economic assessment before revising the Tobacco Products Directive, warning that poorly assessed regulatory changes could increase illicit trade, reduce tax revenues, and harm small retailers. The group noted that Europe’s convenience retail sector comprises more than 684,000 outlets generating more than €250 billion in annual revenue, while an estimated 38.9 billion illicit cigarettes are consumed across the EU each year, resulting in approximately €11.6 billion in lost tax revenue.

    NACS called for greater consideration of impacts on small- and medium-sized enterprises, employment, and supply chains, and urged policymakers to fully evaluate illicit trade risks before implementing further tobacco regulation changes.

  • ABF Announces $1.3M Illicit Tobacco Seizure

    ABF Announces $1.3M Illicit Tobacco Seizure

    The Australian Border Force released details of a major illicit tobacco and vape seizure in Darwin that confiscated 433,400 illicit cigarettes, 686 kg of loose-leaf tobacco, and 50,200 disposable vapes, preventing an estimated A$1.8 million ($1.3 million) in evaded duty and disrupting potential criminal proceeds valued at A$3.7 million ($2.6 million). Officers executed warrants on May 28 as part of Operation GOALFENCE.

    The operation, supported by the Detector Dog Unit, follows another Northern Territory seizure earlier this month involving more than 100,000 cigarettes and 39 kg of loose-leaf tobacco intercepted through the international mail stream. The ABF said the action targeted organized criminal supply chains linked to the illicit tobacco and vape market.