Category: News This Week

Increasing China’s cigarette tax by Yuan1 per pack could help reduce consumption by three billion packs a year, reduce the number of smokers by 3.42 million and generate additional government revenue of Yuan129 billion annually, according to a China Daily story relayed by the TMA.

The story quoted the World Health Organization’s representative in China, Dr. Michael O’Leary, as saying that the above figures had come from studies, though the version of the story TR saw did not give details of the studies.

O’Leary said the economic growth inChinaduring the past two decades had made cigarettes more affordable.

He said that purchasing 100 packs of the cheapest cigarettes required nearly 14 per cent of the average annual per capita income in 2000, but that this figure had dropped to less than three per cent in 2010.

The WHO recommended that excise taxes should account for at least 70 per cent of the retail price of cigarettes, but the rate was 30-40 per cent inChina, said O’Leary.

If the government failed to take action to reduce smoking rates; of the 300 million young people in the country, 100 million would die prematurely of smoking-related illnesses.

The Thai Tobacco Trade Association (TTTA), which represents about 1,300 retailers, wholesalers and distributors acrossThailand, has called on the Ministry of Public Health to abandon plans for further anti-tobacco measures, according to a story in the Bangkok Post.

“We are not against health concerns, but the law should not increase the burden on retailers as selling cigarettes is not against the law,” said TTTA executive director Varaporn Namatra.

“The law should not limit people’s rights and freedoms.”

The provisions under the proposed Tobacco Consumption Control Act (TCCA) will require retailers – there are said to be 480,000 registered retailers nation-wide – to submit costly annual reports, restrict the age of sales persons, participate in anti-smoking campaigns and restrict the display of prices.

The TCCA would also prohibit major retailers from partnering government agencies in conducting charitable programs, such as providing disaster relief support in response to flooding, Varaporn said.

“Moreover, the draft is too broad, ambiguous and gives the Public Health Ministry too much authority to issue further regulations without public consultation or review by parliament,” she said.

According to a new poll conducted amongst 1,000 retailers by IpsosThailandon behalf of TTTA, 78 per cent of retailers believe the new regulations will negatively affect their businesses.

Seventy two per cent of retailers believe more education and 50 per cent believe better enforcement of current laws would be more effective in reducing smoking rates than would the introduction of new regulations.

At a time when retailers expected economic conditions to worsen next year, it might be counter-productive of the government to experiment with costly tobacco regulations that would hurt retailers but do very little, if anything at all, to reduce smoking levels, said Varaporn.

The new provisions have undergone four public hearings and are open to the public for comments. The process should be finished next month.

At that time, the provisions will be submitted to the health minister and the cabinet.

Japan Tobacco Inc’s domestic cigarette sales volume during October, at 10.0 billion, was up by 4.2 per cent on its October 2011 volume, 9.6 billion, which itself was increased by 160.4 per cent on that of October 2010, according to preliminary figures issued by the company today.

Volume during the seven months, April-October, at 69.5 billion, was up by 15.0 per cent on its April-October 2011 volume, 60.5 billion, which was down by 33.0 per cent on that of April-October 2010.

JT’s market share for April-October 2012 was 59.5 per cent, against 54.9 per cent for the full year to the end of March.

JT has suffered huge volume swings in recent times because of an unprecedented, mainly tax-driven price hike on October 1, 2010, and the massive disruption caused to the company’s manufacturing and distribution operations following the earthquake and tsunami of March 11 last year.

JT’s domestic cigarette revenue during October, at ¥54.8 billion, was up by 4.1 per cent on its October 2011 revenue, ¥52.7 billion, which was up by 157.4 per cent on that of October 2010.

Revenue during April-October, at ¥382.8 billion, was up by 15.3 per cent on its revenue during April-October 2011, ¥332.1 billion, which was down by 10.6 per cent on that of April-October 2010.

Names are being gathered on an on-line petition calling for the Obama administration to inform the public that nicotine is a dangerous drug with no medical value, and to re-classify it as a controlled substance.

The petition, created on November 11 and aiming for 25,000 signatures, had 13 signatures by November 16.

The reasons given for creating the petition were:

1. ‘Nicotine is a powerfully addicting drug with no medical or mental health benefit.

2. ‘It is sold only to enrich those who sell it.

3. ‘Nicotine causes irreversible brain damage in the majority of users.

4. ‘Limited exposure to nicotine is highly likely to cause a mental craving for nicotine that does not go away in the victim’s lifetime.

5. ‘The CDC advises that the vast majority of nicotine addicts want to stop using nicotine, and cannot.

6. ‘There is no cure for nicotine addiction, and no treatment with a reasonable combination of safety and effectiveness.

7. ‘Nicotine addiction takes place within the first few days of nicotine use. Once addicted, addicts are chained to an unnecessary major expense, and are at elevated risk for early death. This is because long-term use of nicotine damages human cells.’

Thirty of the 50 largest cities in the US are now ‘smoke-free’, according to a HealthDay story quoting the findings of a new report.

The 60 per cent of large cities that are tobacco smoke-free have laws that prohibit tobacco smoking in all indoor areas of private workplaces, restaurants and bars.

In late 2000, only one of the 50 largest US cities, San Jose, California, had such a comprehensive smoke-free law.

As of October 5, 16 of the 50 largest cities were covered by local tobacco smoke-free laws, and 14 more were covered by state tobacco smoke-free laws, according to researchers at the US Centers for Disease Control and Prevention.

The Canadian Cancer Society has relegated Bangladeshto 97th position among 198 countries in introducing graphic health warnings on tobacco packs, according to a story in the New Age.

The society announced the ranking on Wednesday at the fifth meeting of the parties of the World Health Organization’s Framework Convention on Tobacco Control in Seoul, South Korea.

Bangladesh had ranked 77th in the previous report published in 2010.

The society said thatCanadawas the first country to implement picture warnings in 2001.

Bangladeshhas a population 4-5 times that ofCanadabut a GDP only about one twentieth the size of Canada’s.

Tobacco growers in the West Nusa Tenggara province of Indonesia say that low demand and declining prices for flue-cured are threatening their livelihoods, according to a story in The Jakarta Post.

The farmers, who are expecting to make big losses on this year’s harvest, are asking the provincial administration to intervene in the market.

The price of flue-cured currently ranges between Rp3,000 (US31¢) and Rp5,000 per kg, down from between Rp30,000 and Rp35,000 per kg last year.

“The companies are manipulating the prices as they wish,” said Lalu Musdar, a farmer from Janapria, Central Lombok. “We want the governor to urge them to buy tobacco from us at a fair price.”

Musdar, who planted flue-cured on more than 1.3 ha of his farm in Janapria, said he would suffer losses of up to Rp70 million if he failed to sell his tobacco.

Production costs have risen this year and Musdar said that farmers might make a little profit if the price were Rp30,000 per kg. “For our production expenses, we borrowed from the co-operative and loan sharks at a high interest rate,” Musdar added.

Japan’s 2013 leaf tobacco crop will be grown on 9,245 ha, down by 134 ha or 1.4 per cent on that of this year.

The flue-cured production area will be 5,926 ha, down by 51 ha or 0.8 per cent; the Burley production area will be 3,291 ha, down by 82 ha or 2.4 per cent; and the domestic variety production area will be unchanged at 28 ha.

The Leaf Tobacco Deliberative Council announced yesterday its annual determinations for local tobacco cultivation areas and grower prices for 2013 in response to a proposal submitted by Japan Tobacco Inc. earlier in the day.

The council comprises no more than 11 members appointed by JT with the approval of the Minister of Finance from among representatives of leaf tobacco growers and academics.

JT said the council was in general agreement with its proposal.

The leaf tobacco grower price will be set at an average for all leaf types of ¥1,906.47 per kg, an increase of 0.84 per cent on that of the previous year.

Tobacco smoking is expected to be banned in all restaurants and other public facilities in Seoul by 2020 as the city seeks to make the metropolis ‘smoke-free’, according to a story in The Korea Times.

Seoulis currently playing host to the fifth meeting of the parties to the World Tobacco Organization’s Framework Convention on Tobacco Control.

According to a revised law that is due to become effective on December 8, tobacco smoking will be banned at about 80,000 restaurants, cafés and bars of more than 150 square meters in size. And the ban will be applied to smaller eateries in 2015.

The city will designate an additional 5,517 bus stops as no-smoking areas next year, and 1,305 areas around schools in 2014.

Along with these measures, the city will urge the central government to raise cigarette prices, which it believes is one of the most effective ways of curbing the smoking rate.

Reynolds American Inc. says that the Reynolds American Foundation will donate $140,000 to the American Red Cross to help provide relief to victims of Hurricane Sandy, which hit the east coast of theUS at the end of last month.

‘Recovery efforts continue in the areas affected by the storm and all seven chapters of the Heart of Carolina Region of the Red Cross in North Carolina have been busy helping deploy more volunteers to the impacted areas, as well as asking for financial support for the relief effort,’ RAI said in a note posted on its website.

“Our thoughts are with the folks who are having to endure such hardships as a result of the devastating storm,” said John S. (Tripp) Wilson, president of the foundation. “Our hope is that this donation will support continued relief efforts for the people and communities affected by Hurricane Sandy.”