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Category: Around the Industry

  • Trump Taps Prominent Pastor to Advise on Tobacco Policy   

    Trump Taps Prominent Pastor to Advise on Tobacco Policy   

    Today (Sept. 1), President Donald Trump announced the appointment of prominent faith leader Pastor Darrell Scott as an adviser for tobacco ⁠health issues on a committee that advises the director of the Centers for Disease Control and Prevention. Scott’s stated mandate is to mitigate the severe economic and medical toll of tobacco-related diseases within historically overlooked and underserved American communities. According to Reuters, the high-profile appointment leverages a trusted, long-term administration surrogate to spearhead public health outreach through localized, faith-based networks rather than traditional bureaucratic channels.  

    This appointment signals a tactical shift toward demographic-specific public health intervention following aggressive administrative spending cuts to the CDC’s Office on Smoking and Health (OSH). Industry analysts expect the administration to utilize Scott’s grassroots community influence to bypass downsized federal agency structures, replacing broad national media campaigns with targeted, community-level advocacy.   

    Scott’s urban-focused mandate directly intersects with a loosening federal framework on Tobacco Harm Reduction (THR), according to Reuters. This regulatory pivot is underscored by the Food and Drug Administration’s recent marketing authorization of multiple ZYN nicotine pouch products, explicitly framed by the agency as population-benefit alternatives to help adult smokers switch from combustible cigarettes.   

  • Ruling Could End Reynolds’ Vuse Alto Royalty Payments to Altria  

    Ruling Could End Reynolds’ Vuse Alto Royalty Payments to Altria  

    Law360 reported that R.J. Reynolds has secured a potentially significant reduction in the long-term costs associated with its Vuse Alto business, after a North Carolina federal court ruled that a sublicense obtained from Juul Labs ends Reynolds’ obligation to make future patent royalty payments to Altria Client Services. The dispute stems from a 2022 jury decision finding that Vuse Alto infringed three Altria patents, resulting in an approximately $95.2 million damages award. Reynolds was later ordered to pay a 5.25% royalty on positive net sales of the affected products.  

    According to Law360, Judge William L. Osteen Jr. found that the Juul sublicense authorized Reynolds’ continued use of the relevant patent rights, eliminating the basis for future infringement royalties. The court rejected Altria’s argument that defects in part of the sublicense invalidated the entire agreement, citing its severability provision. Law360 reported that Altria said potentially “hundreds of millions of dollars” in future royalties were at stake. The ruling does not affect the earlier infringement finding or past damages, but could eliminate Reynolds’ 5.25% royalty payments on future covered Vuse Alto sales.  

  • MVCC Desires Regulatory Certainty for Vape Industry  

    MVCC Desires Regulatory Certainty for Vape Industry  

    The Malaysian Vape Chamber of Commerce (MVCC) called on the government to maintain regulatory certainty for the vape industry following its decision not to pursue an appeal concerning the legal status of nicotine in vape products. MVCC Secretary-General Ridhwan Rosli said the Control of Smoking Products for Public Health Act 2024 (Act 852) was developed through an extensive legislative process involving government agencies and industry stakeholders and should continue to serve as the basis for regulating vape and other smoking products. He stressed that the industry had supported regulation and made significant investments to comply with requirements covering products, packaging, labelling, registration, and business operations.  

    MVCC warned that changes to the legal position could create uncertainty for businesses that have made investment and operational decisions based on Act 852. The chamber said it does not oppose regulation or measures addressing public health, product misuse, or enforcement concerns, but believes these issues should be tackled through stronger enforcement or targeted amendments rather than undermining the existing framework. MVCC is urging the government to ensure consistent implementation of Act 852 while balancing public-health objectives with the sustainability of businesses, employees, distributors, and retailers across the vape industry.  

  • Thailand Simplifying Cigarette Tax, Tightening Controls 

    Thailand Simplifying Cigarette Tax, Tightening Controls 

    Thailand’s Excise Department is preparing to replace the current two-tier cigarette tax with a single rate, aiming to improve revenue collection and remove pricing distortions. Cigarettes priced up to THB72 ($2.16) per pack currently face a 25% tax, compared with 42% above the threshold, resulting in more than 95% of cigarettes being priced at the low end. The proposal is under review before submission to the Finance Ministry, with the policy direction expected by October 2026. 

    Separately, the department plans to require excise tax to be paid upfront on cigarettes for export, with refunds issued after Customs confirms the goods left Thailand. The measure is intended to prevent tax-exempt export cigarettes from being diverted into the domestic market and is expected to take effect by end-2026. 

    Thailand is also expanding data-led enforcement against illicit tobacco. In the first 11 months of fiscal 2026, the Excise Department recorded 35,739 enforcement cases, up 5.8%, while estimated fines rose nearly 15% to THB6.27 billion ($188 million). Tobacco offences increased 32.7%. 

  • Filipino Lawmakers Weigh Unified Vape Tax  

    Filipino Lawmakers Weigh Unified Vape Tax  

    Philippine lawmakers are considering a single excise tax for vape products, as health advocates push for a rate of at least P80 ($1.28) to discourage youth access and curb nicotine addiction. The House committee on ways and means is studying a unified rate for salt-nicotine and freebase products, citing existing tax disparities and their potential impact on consumer behavior and illicit trade. 

    The Department of Finance and Department of Health have proposed a unified P72.93 ($1.17) tax by 2027 covering cigarettes, heated tobacco, and vape products. Health groups argue this is too low, while a proposal by Cagayan de Oro Rep. Rufus Rodriguez would set the vape rate at P15 ($0.24) per milliliter, with the aim of balancing revenue collection against the risk of driving consumers toward illegal products. 

  • Illegal Cigarette Trade Costs Suriname $40M 

    Illegal Cigarette Trade Costs Suriname $40M 

    Illegal cigarette trading remains a major challenge in Suriname, with government revenue losses estimated at $40 million per year, according to a presentation to the parliamentary committee overseeing the Ministry of Economic Affairs. The presentation linked the expansion of smuggling to tax increases introduced in 2006, noting that illicit trade persists despite periods of improvement. Smugglers are moving both genuine cigarettes and counterfeit “cheap whites” into the country. 

    Authorities also highlighted links between cigarette smuggling and other criminal activities, including drug trafficking, human trafficking, weapons trading, and money laundering. Free-trade zones remain an important enforcement challenge, with importers and traders continually developing new methods to evade detection. 

    The presentation called for greater coordination among finance, trade, security and public-health authorities to address the illicit market and protect government revenues. 

  • Vietnam Health Official Backs ID Checks for Tobacco Sales

    Vietnam Health Official Backs ID Checks for Tobacco Sales

    Vietnam’s Ministry of Health is proposing age verification for tobacco purchases, allowing retailers to ask customers who appear under 18 to show an identity card, passport, or verify their age through the VNeID national digital identification app. Dr. Duong Huy Luong, deputy director of the ministry’s Department of Medical Services Administration, said at an Aug. 26 seminar that the measure is reasonable and should be supported by effective enforcement and communication. He also called for the revised tobacco-control law to cover emerging nicotine products based on their characteristics rather than specific product names or technologies, while Hoang Duc Nam of the Ho Chi Minh Communist Youth Union said controls should extend to online sales and social media marketing, where young people increasingly encounter nicotine products.

  • Philippines Says 93% of Vape Brands Unregistered

    Philippines Says 93% of Vape Brands Unregistered

    The Philippines’ Department of Trade and Industry (DTI) said 292 of 313 vape brands (93%) identified in the market are not registered with the agency. DTI Assistant Secretary Marcus Valdez II disclosed the figures during an Aug. 25 House Ways and Means Committee hearing on tobacco and vapor excise taxes.

    Lawmakers and government agencies are considering a single excise tax rate for nicotine salt and freebase vapor products, arguing the current two-tier system contributes to tax leakage and illicit trade. “They will not register because the tax is too high,” committee chairman Miro Quimbo said. The Bureau of Internal Revenue reported 6,196 tobacco and vape enforcement operations in 2026, generating an estimated P1.7 billion ($27 million) in excise taxes.

    The Bureau of Customs reported 253 tobacco seizures worth P10 billion ($160 million) and 18 vapor-product seizures worth P1.6 billion ($25.6 million) this year, compared with P1.87 billion and P649 million ($29.9 million and $10.4 million), respectively, in 2025. Lawmakers cautioned that excessive taxes could drive more consumers toward illicit products, with Rep. Roberto Nazal saying authorities should avoid “overtax[ing] to the point that we will promote further smuggling.”

  • Australian Party Calls for 80% Tobacco Tax Cut

    Australian Party Calls for 80% Tobacco Tax Cut

    Australia’s federal opposition is calling for tobacco excise to be cut by up to 80% to undermine organized crime networks that it says now control much of the country’s tobacco market. A coalition task force report released today (Aug. 26) said as much as 80% of tobacco consumed in 2025 was illicit, up from 12% in 2017.

    Sen. Richard Colbeck and Monash MP Mary Aldred said high tobacco taxes have helped fuel an underground market linked to firebombings and arson attacks. “Criminals had taken ‘almost complete control of Australia’s tobacco market,’” the report said. Colbeck said the issue is no longer simply about smoking but “who controls a billion-dollar market in our economy: the Australian government or organized crime?”

    The report said tobacco excise revenue fell from about A$16 billion ($11.2 billion) in 2019-20 to A$8 billion ($5.6 billion) in 2024-25 and is projected to fall to A$4 billion ($2.8 billion) in 2025-26 and A$2 billion ($1.4 billion) by 2029-30. One Nation has proposed a 75% cut, while the Nationals and NSW Premier Chris Minns have also backed lower taxes. The Albanese government has opposed reducing the excise.

  • Fla. Moves to Block Benefits for Tobacco, Vape Products

    Fla. Moves to Block Benefits for Tobacco, Vape Products

    Florida Gov. Ron DeSantis announced the state will restrict Temporary Assistance for Needy Families (TANF) benefits from being used to purchase tobacco and vaping products, along with video games, theme park tickets and several other goods and services.

    DeSantis directed the Florida Department of Children and Families to amend the state’s TANF plan. The program already prohibits benefits from being used for alcohol, gambling, and adult entertainment. The new restrictions also cover adult content, tattoos, spa services, tanning, and psychic readings.

    “Taxpayer-funded assistance should help families put food on the table, keep the lights on, purchase clothing, provide for their children, and overcome barriers on the path toward independence,” DeSantis said. He said the changes are intended to ensure taxpayer-funded assistance is focused on essential needs and support families’ path toward self-sufficiency.