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Category: Around the Industry

  • Bangladesh Battles with Illicit Tobacco, Enforcement

    Bangladesh Battles with Illicit Tobacco, Enforcement

    Authorities in Bangladesh are facing renewed scrutiny over the enforcement of tobacco-related regulations, as a legal petition seeks updates on action taken against illegal shisha lounges in Dhaka. The filing, submitted to the Dhaka Metropolitan Police, requests details on raids, arrests, and compliance with a High Court directive issued in March mandating the closure of unauthorized lounges, amid claims that some establishments in areas like Banani and Gulshan remain operational.

    At the same time, enforcement efforts continue elsewhere, with officials in Kushtia destroying illegal tobacco products worth approximately Tk 2.5 crore ($225,000), including nearly 36 million sticks and units of cigarettes, bidis, and other items seized through anti-smuggling operations.

  • Report: New 15% Tobacco Tax One of Five Streams EU Considering  

    Report: New 15% Tobacco Tax One of Five Streams EU Considering  

    Reuters reported that the European Union is discussing five new revenue streams that would help fund its seven-year budget, allowing for new priorities like defense ​and competitiveness and service joint debt, while limiting cuts to agriculture and regional aid.

    The proposed streams for 2028-2034 are an emissions trading system, a carbon border adjustment mechanism levy, a non-collected electronic ⁠waste tax, a corporate ​resource for ⁠Europe levy, and a tobacco excise duty. The tobacco tax would be a new 15% uniform call-rate tobacco duty, paid by EU member states from national budgets, which would bring in an estimated €11.2 billion ​a year, the ​Commission says.

    By a vote of 370-201, EU’s parliament voted to increase its budget 1.26%, increasing total spending to about €1.94 trillion.

  • Indonesia Seizes 11M Illegal Cigarettes at Border Op

    Indonesia Seizes 11M Illegal Cigarettes at Border Op

    Authorities in Indonesia dismantled a large-scale illegal cigarette trafficking operation in East Nusa Tenggara, seizing approximately 11 million illicit cigarettes with counterfeit excise stamps. The case, uncovered through a joint operation involving police, customs, and immigration officials, highlights ongoing smuggling activity along the Timor Leste border, with estimated state losses exceeding IDR 12 billion ($696,000).

    Investigators said the network smuggled cigarettes by sea into the Atapupu area before distributing them across Timor Island, using multiple storage locations to support the operation. Four foreign suspects were arrested in connection with the case, which officials described as part of a structured, transnational network exploiting border vulnerabilities for large-scale illicit trade.

  • Bangladesh Won’t Raise Tobacco Taxes, Eyes Other Measures

    Bangladesh Won’t Raise Tobacco Taxes, Eyes Other Measures

    Bangladesh’s National Board of Revenue (NBR) confirmed that no new tax increases on cigarettes will be included in the FY2027 budget, maintaining the current tax structure, which already exceeds 83%. Officials indicated that while prices may be adjusted in line with regional markets, further tax hikes are not under consideration. Industry stakeholders used the pre-budget meeting to highlight the growing threat of illicit trade, prompting authorities to explore new enforcement measures, including the introduction of QR or tracking codes on cigarette packs to verify tax compliance and curb illegal imports.

  • Smugglers Floating New Ideas to Get Tobacco into Latvia

    Smugglers Floating New Ideas to Get Tobacco into Latvia

    Authorities in Latvia say they continue to face significant volumes of illicit tobacco entering the country, with more than 44 million illegal cigarettes and over 21,000 kg of tobacco seized in 2025 alone. In the first quarter of 2026, customs officials intercepted an additional 1.37 million contraband cigarettes at border crossings, slightly down from 1.58 million during the same period the previous year, indicating continued but shifting smuggling activity.

    Officials say smugglers are adapting tactics to evade detection, increasingly using waterways such as the Daugava River to float concealed shipments, including cigarettes hidden in tractor tires or wrapped in waterproof materials and guided by GPS. Previously, organized groups also deployed weather balloons to transport contraband across borders, though enforcement efforts have curtailed that method. Authorities say the shift in techniques underscores the evolving nature of illicit trade networks, which continue to exploit both land and water routes despite heightened monitoring and cross-agency cooperation.

  • Pakistan Investigating Undocumented Acetate Tow Issues

    Pakistan Investigating Undocumented Acetate Tow Issues

    A sharp decline in documented imports of acetate tow has raised concerns about growing illicit supply channels and significant tax losses, according to the Business Recorder. Imports fell 53% between 2023 and 2025, dropping from 6.9 million kg to 3.7 million kg, despite stable cigarette production levels of 60–80 billion sticks annually. According to an unnamed industry expert, the gap suggests a substantial shift toward undocumented or smuggled inputs following the imposition of a PKR 44,000 ($158.40) per kg Federal Excise Duty.

    Industry sources estimate that the trend has cost the government approximately Rs 300 billion ($1.1 billion) in lost tax revenue and distorted market competition. Legal manufacturers complying with import and tax requirements face increasing pressure as illicit operators expand market share, now accounting for more than half of total sales, Business Recorder said.

  • Philippines: Latest Crackdown Sinks $13M Illicit Operation

    Philippines: Latest Crackdown Sinks $13M Illicit Operation

    Philippine authorities dismantled a large-scale illegal cigarette manufacturing and distribution operation, seizing nearly 800 million pesos ($13 million) worth of raw materials and equipment. The Philippine National Police said the network had been operating since the third quarter of 2025 and was part of a broader illicit trade impacting government revenues.

    Officials warned that such operations significantly reduce excise tax collections intended for public services, including healthcare. Authorities have already taken similar enforcement actions in Luzon and plan to expand crackdowns to the Visayas region as part of ongoing efforts to combat the illicit tobacco trade.

  • Massachusetts Court Upholds $56M Verdict Against Philip Morris

    Massachusetts Court Upholds $56M Verdict Against Philip Morris

    Massachusetts’ highest court rejected an effort by Philip Morris USA to impose stricter standards on punitive damages, allowing a previously reduced $56 million verdict to stand. The company had sought additional legal limits to curb large punitive awards, but the court declined to adopt new rules.

    The case stems from a lawsuit in which the original $1 billion punitive damages award had already been significantly reduced by a lower court. Philip Morris argued for further reductions and broader changes to how such damages are assessed, but the justices upheld the existing framework.

  • Tennessee Lawmakers Adopt Amendment Strengthening Vape Bill

    Tennessee Lawmakers Adopt Amendment Strengthening Vape Bill

    Tennessee lawmakers approved an amendment to a vape-related bill that expands its scope to more aggressively address youth access and safety concerns, including provisions aimed at tightening controls around vape sales and use tied to incidents in schools. The amendment was backed by bipartisan support, with legislators saying it significantly strengthens the original proposal.

    Rep. Elaine Davis pointed to recent cases at a Knoxville high school where students required medical treatment after vaping, including instances requiring emergency intervention, as evidence of the growing problem. Lawmakers said such incidents are becoming more common across the state, driving urgency for stricter oversight.

    While some legislators raised concerns about regulating adult behavior and potential impacts on local tax revenues, others argued the changes were necessary to address public health risks. Bill sponsor Rep. David Hawk noted implementation challenges with broader restrictions but said further measures could be considered in future sessions. The final vote on the full bill was delayed for additional review.

  • Malaysian Vape Industry Group Pushes Back on Drug Contamination Claims

    The Malaysian Retail Electronic Cigarette Association (MRECA) raised concerns over reports of vape products containing prohibited substances, while emphasizing that such cases are linked to illicit trade rather than the regulated industry. The group said products approved by the Ministry of Health must meet strict testing and compliance requirements and are distributed through licensed retail channels.

    MRECA said illegal or contaminated products are typically sold through unregulated markets, including unauthorized online platforms, and should not be conflated with compliant offerings. The association also warned about the spread of misleading content on social media, which it said has unfairly implicated legitimate retailers and created confusion about enforcement efforts.

    The group has filed complaints with authorities to address false claims and called for clearer distinctions between regulated products and illicit goods. MRECA said it will continue working with regulators to support enforcement and maintain industry standards.