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Category: News This Week

  • Concern That Malaysian Retailers Won’t be Ready for Vape Display Ban

    Concern That Malaysian Retailers Won’t be Ready for Vape Display Ban

    Anti-tobacco groups are raising concerns that some Malaysian retailers are still not compliant with the tobacco and vape retail display ban (RDB), which is scheduled for full enforcement on October 1 under the Control of Smoking Products for Public Health Act 2024 (Act 852). The Malaysian Council for Tobacco Control (MCTC) noted that out of more than 51,000 retailers nationwide, a significant number have yet to install the required enclosed cabinets for tobacco and vape products. Observations from the field show some stores leaving certain cigarette products openly displayed and vape products in glass cases.

    MCTC urged the Ministry of Health not to grant exceptions, though it suggested temporary measures—such as covering products with cloth or canvas—if cabinets are still being installed. The council warned that narratives claiming the ban harms small businesses are being used by some retailers to rally political support.

  • Indonesia Weighs Tobacco Tax Hike Amid Worker, Smuggling Concerns

    Indonesia Weighs Tobacco Tax Hike Amid Worker, Smuggling Concerns

    Earlier this week, Indonesia’s Finance Minister Purbaya Yudhi Sadewa said that any increase in tobacco excise must be paired with safeguards for workers, warning that steep hikes could push the sector into decline without social protection programs. “You can’t kill the industry unless there’s a program to absorb the displaced workforce,” he told reporters, noting the risk of mass layoffs if cigarette excise rates rise too quickly.

    While higher taxes are designed to cut smoking rates and boost state revenues, Purbaya stressed the need for transition planning. He said he would review the condition of East Java’s cigarette industry and study the growing illegal market, which he warned is eroding legitimate businesses. The finance ministry is also investigating counterfeit excise stamps, which Purbaya believes could be costing the state significant revenue.

    Deputy Finance Minister Anggito Abimanyu confirmed that the 2026 excise tariff remains under review. Lawmakers recently agreed to raise the government’s 2025 customs and excise revenue target to Rp336 trillion ($19.7 billion), up from Rp334.3 trillion. Final details of next year’s tobacco tariff will be determined after an evaluation of this year’s performance.

  • KT&G Announces Additional Share Returns, Increased Annual Dividend

    KT&G Announces Additional Share Returns, Increased Annual Dividend

    KT&G announced stronger shareholder return measures and reaffirmed its global growth trajectory yesterday (September 23) at its “2025 CEO Investor Day.” The company committed to a minimum annual dividend of 6,000 KRW ($4.26), a 600 KRW ($0.43) increase from last year, alongside an additional 260 billion KRW ($184.6 million) in share repurchases and cancellations—funded by the sale of non-core assets. This represents a 171% increase in shareholder returns year-over-year. KT&G has already canceled 10.4% of its shares since 2023 and aims to build further value through flexible capital deployment as global business performance continues to accelerate, supported by premiumization, cost optimization, and fully localized value chains. The company is targeting double-digit growth in both operating profit and revenue in 2025, following five consecutive quarters of “triple growth” across revenue, profit, and sales volume.

    In parallel, KT&G disclosed a comprehensive MOU with Altria Group, Inc. to collaborate across nicotine and non-nicotine categories. KT&G CEO Kyung-man Bang emphasized that the combined strategy of strong shareholder returns and global expansion through strategic partnerships positions the company for sustainable long-term growth.

  • BAT France Points to Anti-Smoking Policy Failure

    BAT France Points to Anti-Smoking Policy Failure

    BAT France told lawmakers today (September 24) that France’s reliance on over-taxation and outright bans risks fueling the illicit nicotine market while failing to cut smoking rates, which remain stubbornly above 30%. “This excessive tax policy has, above all, encouraged criminal, structured, and industrial smuggling,” said Sébastien Charbonneau, director of public and regulatory affairs. He added that the government’s planned ban on tobacco-free nicotine pouches would repeat past mistakes, driving consumers to the black market without advancing public health or protecting minors.

    Instead, BAT France urged a pragmatic approach focused on strict but balanced regulation. The company called for a framework that prohibits sales to minors, limits nicotine content and flavorings, enforces retail controls, and applies substantial penalties for violations.

    “The State has a moral duty to adopt the principle of harm reduction related to smoking to allow adult smokers to have access to alternatives to tobacco, and to do so legally,” Charbonneau said. “All we are asking is to look at the scientific data and regulations that have enabled many countries to achieve their public health objective.”

  • South Korea Moving Toward Regulating Vapes Like Cigarettes

    South Korea Moving Toward Regulating Vapes Like Cigarettes

    South Korea is moving to classify synthetic nicotine as tobacco under the Tobacco Business Act, subjecting e-cigarettes to the same regulations and taxes as traditional cigarettes for the first time. A subcommittee of the National Assembly’s Strategy and Finance Committee approved the revision on Monday, expanding the definition of tobacco from “tobacco leaf” to “tobacco or nicotine.”

    If passed in the main session, the measure would generate an estimated 930 billion won ($646 million) annually in new tax revenue, lawmakers said. Synthetic nicotine has until now been treated as an industrial good, free from tobacco levies and restrictions. The bill, which includes a two-year grace period on retail restrictions, marks the first change to the act’s tobacco definition since its enactment in 1988.

  • Report: Latvia Lost €67M to Illicit Cigarette Trade

    Report: Latvia Lost €67M to Illicit Cigarette Trade

    Latvia lost an estimated €67 million to the illicit cigarette trade in 2024, a 31% increase over the previous year, as reported by KPMG at the National Forum on Smuggling. The study showed that contraband now accounts for 18% of total cigarette consumption in the country, with 340 million units consumed. Belarus remains the main source of smuggled cigarettes according to the report, supplying half of the illicit market, while counterfeit products surged 40% to 140 million units.

    Philip Morris Latvia public affairs head Guntars Grīnvalds warned that simplistic excise tax hikes can exacerbate smuggling rather than increase revenue. He advocated for a differentiated taxation approach: higher duties on traditional cigarettes, but lower rates for less harmful alternatives to encourage switching among adult smokers. The findings underscore the need for balanced excise and regulatory policies, as well as stronger measures against counterfeiting and illegal production, to effectively combat the growing illicit market.

  • CAPHRA Slams WHO Over Barriers to COP11 Participation

    CAPHRA Slams WHO Over Barriers to COP11 Participation

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) criticized the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC) for imposing what it calls “insane” registration requirements for the upcoming COP11 in Geneva. Executive Coordinator Nancy Loucas said the late opening of registration, coupled with onerous demands for personal documentation, a letter of intent, a full CV, and a declaration of zero tobacco funding, is deliberately designed to exclude consumer advocacy groups and harm reduction voices. Despite the FCTC being in place for two decades, not a single consumer group has ever been granted observer status, while only 26 NGOs have been approved overall, far fewer than in comparable UN forums such as climate negotiations.

    CAPHRA said the WHO’s restrictive interpretation of Article 5.3 has been weaponized to silence stakeholders, including people who smoke or use safer nicotine products. Proceedings remain closed to the media and the public, with no live streaming or meaningful transparency, a practice Loucas calls fundamentally undemocratic. CAPHRA is urging reform to allow full and fair participation, stressing that genuine tobacco harm reduction requires including the very consumers most affected by global policy decisions.

  • Kenyan Retailers Push Back Against Tobacco Control Bill

    Kenyan Retailers Push Back Against Tobacco Control Bill

    Bar owners and retailers in Kenya held a protest today (September 24) and urged the Senate to halt the progress of the Tobacco Control (Amendment) Bill, 2024, citing a lack of public consultation. The Bars, Hotels and Liquor Traders Association of Kenya (BAHLITA) and the Retail Traders Association of Kenya (Retrak) also submitted a joint petition, arguing that consumers, retailers, and manufacturers—those most affected by the proposed law—have been excluded from the legislative process. They contend that the bill, sponsored by ODM Senator Catherine Mumma, has been rushed forward without meaningful stakeholder input.

    The petitioners warn that the bill’s stricter regulations on nicotine products, including synthetic nicotine and e-cigarettes, could harm small and medium-sized businesses, increase compliance costs, and inadvertently drive legal trade into the illicit market. With half of Kenya’s cigarette market already illegal, they argue that the legislation could exacerbate black-market activity, threaten livelihoods, and reduce employment in retail. The groups are calling for inclusive, transparent consultations before the bill proceeds to the Committee of the Whole House stage.

  • Altria and KT&G Partner in Pursuit of Modern Nicotine Growth

    Altria and KT&G Partner in Pursuit of Modern Nicotine Growth

    Altria Group, Inc. and KT&G Corporation announced they have signed a non-binding global collaboration memorandum of understanding (MOU) “to pursue joint growth opportunities in modern oral nicotine, non-nicotine wellness products, and operational efficiency in traditional tobacco.” The partnership builds on Altria’s long-term goal of expanding into adjacent international categories beyond cigarettes, first outlined in 2023.

    The companies said their complementary strengths would accelerate innovation and market expansion. As an initial step, an Altria subsidiary will acquire an ownership interest in Sweden-based Another Snus Factory (ASF), concurrent with KT&G’s purchase of the company, giving both parties a foothold in the LOOP nicotine pouch brand. They also plan to evaluate ways to expand Altria’s on! and on! PLUS oral nicotine products to select markets.

    Beyond nicotine, the collaboration extends into the U.S. wellness and energy space through Altria and KT&G’s Korea Ginseng Corporation, which will jointly explore new product opportunities. The two firms will also work to improve operational efficiency in traditional tobacco businesses, with the aim of strengthening competitiveness and creating transferable capabilities for future international smoke-free ventures.

  • Pakistan’s Tobacco Farmers Say Delayed Quotas Spark $23M Loss

    Pakistan’s Tobacco Farmers Say Delayed Quotas Spark $23M Loss

    Tobacco growers in Pakistan claim delayed quota announcements and reduced allocations have triggered overproduction, a price crash, and losses exceeding Rs6.56 billion ($23 million). According to the Dawn, the government normally sets quotas by October, but this year’s lower quota was delayed until December, forcing farmers to sell surplus tobacco at the minimum indicative price (MIP) of Rs548 ($1.92) per kg—far below the market average of Rs720 ($2.52). Growers accuse multinational and local companies of exploiting the situation by purchasing surplus cheaply.

    According to the Dawn, industry figures warn that farmers are being squeezed between rising production costs and falling incomes, with many unable to recover expenses. According to the Tobacco Growers Association, companies have failed to meet quota commitments, while export figures tell a different story—Virginia tobacco exports jumped 129% to 48 million kilograms in 2024-25, even as domestic quotas were cut, the newspaper said. Farmers claim losses of up to Rs3 million ($10,500) per hectare under current pricing.

    The downturn threatens broader economic impacts, including reduced government revenue, falling exports, and job losses in tobacco-producing regions. Growers also point to climate-related crop damage this year, for which they have received no compensation. The National Assembly’s standing committee on tobacco is set to meet in Islamabad on September 23 to discuss possible relief measures, though farmers remain skeptical about immediate action.