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Category: News This Week

  • Sweden Rejects EU Plan to Fund Budget with Tobacco Tax

    Sweden Rejects EU Plan to Fund Budget with Tobacco Tax

    Swedish Finance Minister Elisabeth Svantesson called an EU proposal to use revenue from higher tobacco taxes to help fund the bloc’s next long-term budget “completely unacceptable,” saying the proposal threatens the sale of nicotine pouches and undermines national tax sovereignty. Sweden has positioned itself as a model for tobacco harm reduction, citing a smoking rate of just 5% and a decline in smoking-related cancers.

    The proposal, referenced in a document from Germany’s International Affairs Liaison Office in Brussels and submitted to the German parliament, suggests new EU revenue sources for the 2028–2034 budget could include levies on electronic waste and tobacco. Though not yet officially confirmed by the European Commission, the idea adds to growing pressure from at least 15 EU member states to raise excise duties on tobacco products.

    Euractiv reported the European Commission is considering a 139% tax hike on cigarettes, along with steeper levies on alternative products such as e-cigarettes, nicotine pouches, and heated tobacco. Sweden now joins Italy, Greece, Romania, and Bulgaria in opposing the move, primarily to defend nicotine pouches.

    In a post on X, Svantesson said the proposal would result in “a very significant tax increase on white snus,” and that the Commission wants the tax revenue “to go to the EU and not to Sweden.” 

  • PCA Talks “Beautiful Bill’s” Impact on U.S. Cigar Industry

    PCA Talks “Beautiful Bill’s” Impact on U.S. Cigar Industry

    With the Trump Administration’s “One Big Beautiful Bill Act” now signed into law, the Premium Cigar Association (PCA) reached out to its members who have spent years frustratingly in a sort of limbo where cigars are sometimes but sometimes not treated like cigarettes or other tobacco products. The PCA said the Act introduces important policy shifts that provide both immediate benefits and notable challenges to premium cigar retailers.

     “On the positive side, PCA members will see immediate advantages from a temporary regulatory freeze on new FDA and HHS rules,” the statement said. “This provides retailers with temporary relief from new compliance burdens, enhancing short-term operational stability. Additionally, the Act significantly increases the small business tax deduction on qualified business income from 20% to 23%. This improvement directly benefits small and family-owned cigar retailers by lowering their overall tax liability, allowing more resources to be invested back into their businesses.  

    “While the Act provides meaningful short-term benefits, it also necessitates proactive management of new challenges. Strategic advocacy, ongoing economic analysis, and member education will be key in leveraging the opportunities and mitigating potential risks posed by these legislative changes.”

    Read the full statement here.

  • TIMB: Zimbabwe Can Produce 17B Cigarettes

    TIMB: Zimbabwe Can Produce 17B Cigarettes

    Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) said the country has the potential to manufacture 17 billion cigarette sticks, up from its current 4 billion. Since the government crafted the Tobacco Value Chain Transformation Plan (TVCTP) in 2021, the nation’s cigarette manufacturing has increased 10%, but, on the back of a record-setting crop, TIMB says it could be significantly higher.

    “Now that we have reached and exceeded 300 million kgs of tobacco sold in 2025, it’s time to scale up local cigarette manufacturing,” said TIMB. “That’s a massive opportunity, let’s increase capacity utilization, attract new manufacturers and ensure more jobs, more exports and more local wealth creation. We call on interested entrepreneurs to invest in Zimbabwe’s tobacco value chain through partaking in cigarettes manufacture for export, processing and packing machinery, tobacco packaging materials, shisha, and cut tobacco.”  

  • Bulgarian Police Seize $18M in Illegal Cigarettes at Factory Bust

    Bulgarian Police Seize $18M in Illegal Cigarettes at Factory Bust

    Bulgarian authorities dismantled the largest illegal cigarette factory ever discovered in the country, the Prosecutor’s Office announced today (July 10). According to an official statement, the clandestine facility was located beneath a cow farm near the village of Momkovo in the Haskovo region of southeastern Bulgaria. Authorities uncovered approximately 102.7 million cigarettes of various brands at the site.

    “The value of the seized cigarettes is estimated at over 30 million BGN ($18 million),” the statement said.

    In addition to the massive quantity of cigarettes, law enforcement also confiscated machinery and equipment used in their production. Two suspects have been detained so far, one of whom is the owner of the cow farm. Authorities are currently investigating the involvement of other individuals.

  • EU Considers Tobacco Tax as New, Long-Term Revenue Stream

    EU Considers Tobacco Tax as New, Long-Term Revenue Stream

    The European Commission is exploring a potential EU-wide tobacco levy to help fund its next long-term budget, according to a German government report seen by Euractiv. The idea, still in early stages, could become a new source of “own resources” for the EU alongside member state contributions and customs duties.

    The proposal, which also mentions a possible levy on electronic waste, comes amid rising EU spending priorities such as defense. Tax Commissioner Wopke Hoekstra has been pushing for higher tobacco excise taxes, and a leaked draft suggests a potential 139% hike on cigarettes.

    While EU countries already apply tobacco taxes, the Commission may consider a separate levy that funnels revenue directly into the EU budget. However, any revision to the Tobacco Excise Tax Directive (TED) would require unanimous approval from all member states—some of which, including Greece and Romania, strongly oppose changes.

    The tobacco industry has warned such measures could backfire, fueling black market activity and reducing national revenues. An official proposal on the TED revision is expected this fall.

  • BAT Accuses Local Manufacturers of Fueling South African Illicit Cigarette Market

    BAT Accuses Local Manufacturers of Fueling South African Illicit Cigarette Market

    British American Tobacco South Africa (BATSA) accused local cigarette manufacturers of driving the country’s booming illicit tobacco trade, which it says is costing the state an estimated R28 billion ($1.6 billion) in lost annual tax revenue. The company’s regulatory head, Johny Moloto, said the crisis has shifted from a cross-border issue to a “homegrown problem,” with 76.7% of retail outlets selling cigarettes below the Minimum Collectable Tax price for a box of cigarettes, which “should sell for above R26.22 ($1.47) a pack after accounting for levies.”

    “We have repeatedly shown who the culprits are,” Moloto said. “If SARS [South African Revenue Service] and the police wanted to act, they could. Today.”

    A study, commissioned by BAT and independently conducted by Ipsos, revealed that 14 of the 23 manufacturers involved in the illicit trade are based in South Africa, accounting for 91% of the illegal market. Gold Leaf Tobacco Company was named as the most prevalent brand in these sales, with nearly 90% of its products selling below the legal threshold. BATSA had 1.5% of its products selling below the minimum.  

    Moloto urged SARS and police to act on existing intelligence and called for stricter enforcement, including SARS’ presence at manufacturing sites and a national minimum retail price to ease policing.

  • Men Jailed Over Failed Plot to Steal $5M in Seized Vapes

    Men Jailed Over Failed Plot to Steal $5M in Seized Vapes

    Lim Zhi Wei was sentenced to 27 months in jail and fined S$2,400 ($1,872) for his role in a failed plan to steal more than S$6.5 million ($5.1 million) worth of confiscated vape devices and related components from a secured warehouse in Singapore.

    Deputy Public Prosecutor Nicole Teo said Lim’s actions were part of a wider conspiracy involving multiple individuals attempting to retrieve the seized contraband. Lim pleaded guilty to obstructing justice, as well as several unrelated charges, including drug consumption, criminal breach of trust, and receiving S$10,000 ($7,800) in scam proceeds through his bank account.

    Lim was offered S$20,000 ($15,600) by alleged ringleader Chua Wee Ming to break into the unit, which contained over 540,000 vaping-related items previously seized from Chua’s alleged smuggling syndicate by the Health Sciences Authority (HSA). Lim brought along a 23-year-old accomplice, Elvin Suriaganandhan, and the two began surveilling the property on March 26, 2024, before being stopped by HSA officers.

    Lim’s sentencing follows that of Chee Wai Yuen, who was jailed last week for 15 months after attempting an earlier reconnaissance mission at the same warehouse.

    Chua recruited Chee in March 2023 to check if the unit was guarded, but Chee was intercepted by HSA officers. He was found with ketamine and methamphetamine, fled Singapore while on bail by hiding in a lorry, and was later arrested in Malaysia and extradited in October 2023.

    Chua, the central figure allegedly behind the smuggling ring and theft plan, remains in custody, his case pending.

  • Ohio Law Banning Local Tobacco Regulation Struck Down

    Ohio Law Banning Local Tobacco Regulation Struck Down

    An Ohio appeals court ruled that state lawmakers violated the Ohio Constitution by attempting to block cities like Columbus from enacting their own regulations on tobacco product sales. In a unanimous decision, the Tenth District Court of Appeals upheld a lower court ruling that found the state’s efforts to preempt local control over tobacco laws unconstitutional under Ohio’s Home Rule Amendment.

    The amendment allows municipalities to govern local safety and welfare issues unless they are in direct conflict with general state law. The ruling affirms that cities can regulate tobacco sales, including banning flavored products.

    The decision comes after state lawmakers added a provision to the 2023 budget to block local tobacco regulation. Gov. Mike DeWine vetoed the move twice, but lawmakers overrode him. The City of Columbus, backed by other municipalities, sued the state, and Franklin County Judge Mark Serrott ruled in their favor — a decision now upheld by the appeals court.

  • Nigeria Regulates Portrayals of Tobacco, Rituals

    Nigeria Regulates Portrayals of Tobacco, Rituals

    Nigeria became the first African country to formally regulate the portrayal of tobacco use, money rituals, and narcotics in media content, according to a statement sent to Premium Times by the National Film and Video Censors Board (NFVCB). The announcement was made following the board’s presentation at the 2025 World Tobacco Conference held in Ireland, where the country’s new policy was praised as a bold and visionary step toward safeguarding public health and cultural values.

    The policy, which was approved and gazetted in 2024 under the leadership of the Honorable Minister of Arts, Culture, and Creative Economy, Hannatu Musawa, targeted harmful portrayals in Nigerian films, music videos, and skits.

  • Maine Jacks Cigarette, Cigar Taxes for 2026

    Maine Jacks Cigarette, Cigar Taxes for 2026

    As part of a newly signed budget bill, Maine will raise its cigarette taxes from $2 to $3.50 per pack, increase the taxes on cigars from 43% to 75% of the wholesale price, and boost taxes on smokeless and chewing tobacco. It also includes a provision to automatically adjust other tobacco product taxes in line with future cigarette tax increases.

    Governor Janet Mills championed the tax hikes in her 2025–2026 budget proposal, citing public health concerns and the state’s high smoking rates. Maine hasn’t increased cigarette taxes since 2005 and currently has the lowest rate in New England. This change will place Maine among the top states nationally for tobacco taxation, tying New York and Alaska for the sixth-highest rate and trailing only Utah in retail cigar prices due to its 86% uncapped rate. The new taxes begin January 5, 2026.

    According to Halfwheel, the tax hike means that a cigar with a manufacturer’s suggested retail price of $9.50 could see its tax increase from $2.04 to $3.56. A cigar priced at $16 would see its tax jump from $3.44 to around $6.