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Category: News This Week

  • Report: Massachusetts’ Restrictions Created Huge Illicit Market

    Report: Massachusetts’ Restrictions Created Huge Illicit Market

    A new report says that Massachusetts, one of the states at the forefront of fighting tobacco and nicotine with taxes and regulations, saw a 21,000% increase in illegal vape seizures last year. The Massachusetts Multi-Agency Illegal Tobacco Task Force (which is under the umbrella of the state’s Department of Revenue) said state police vape seizures jumped from 1,326 units to 279,432.

    The report also found there is a thriving market for untaxed menthol cigarettes, flavored cigars, and other banned products, all presumedly powered by state policies like high taxes and strict prohibition.

    “It just shows that, in the state’s own report, black market sales will rise or thrive because of this,” V.J. Mayor, the CEO of the Northeast Wholesalers Association told Inside Sources. “And it doesn’t achieve the public health outcome that the state is looking for when it increases state excise taxes on cigarettes.

    “Massachusetts’ experience proves that overly restrictive policies do not eliminate the problem, they simply drive it underground. This fuels a thriving black market, undermines legitimate businesses, and ultimately shortchanges the state’s revenue.”

    The state’s restrictive policies date back to 2019’s “An Act Modernizing Tobacco Control” law, which banned the sale of flavored tobacco products, added new regulatory requirements, and placed a 75% excise tax on electronic nicotine systems. It also opened the door for local authorities to extend their own controls, with numerous towns adding more taxes, creating generational bans, and outlawing specific products.

    “These numbers are absolutely staggering and prove what [we] warned from the start—Massachusetts has created the perfect environment for illegal smuggling,” said Peter Brennan, executive director for the New England Convenience Store and Energy Marketers Association. “Our members are losing customers to the illicit market every day, and the state is bleeding tax revenue because criminals are filling the void created by excessive taxes and product bans.”

    Paul Craney, from the free-market Massachusetts Fiscal Alliance think tank, says Massachusetts has one of the highest rates of consumers who buy tobacco products without paying state taxes as people cross the border into New Hampshire to buy the products significantly cheaper, and then also end up doing more shopping for alcohol, groceries, and more. The Tax Foundation and Mackinac Center for Public Policy found that between 2007 and 2022, New Hampshire’s government received $955 million from Massachusetts smokers.

    “This report is also clear evidence of just how misguided additional prohibitions would be,” Brennan said. “Ideas like creating a so-called nicotine-free generation or limiting sales of nicotine products to adult-only stores will only make a bad situation worse—driving even more consumers to illegal sellers, costing even more tax revenue, and putting even more pressure on our small businesses.”

  • Study: Young Dutch Vapers Unaware of Nicotine

    Study: Young Dutch Vapers Unaware of Nicotine

    A study in the Netherlands found that nearly 40 percent of young people who vape monthly do not know if their e-cigarette contains nicotine, according to a report from the Trimbos Institute. The findings, which expand on 2023 data, highlight a significant gap in awareness about the potentially addictive substance.

    “Young people seem less aware of the nicotine in vapes. This is a serious issue because once addicted, it is very difficult to quit,” said Esther Croes, a tobacco expert at the Trimbos Institute. She added that nicotine use can disrupt brain development in the long term.

    The report surveyed Dutch youth between the ages of 12 and 25 who vape at least once a month. While many said they continue vaping because they enjoy it, nearly 40 percent admitted they did not know whether their device contained nicotine. Additionally, more than two-thirds of respondents said they do not feel addicted.

    According to NL Times, data shows that young people feel more addicted to traditional cigarettes than to vapes. Among those who vape monthly, only 28 percent reported feeling addicted, compared to 50 percent of cigarette smokers. Despite these figures, addiction experts warn that nicotine dependence may develop gradually, and that young people may underestimate the difficulty of quitting.

    According to the study, many respondents cited flavors as their main reason for starting. Social influence and curiosity were also key factors.

  • Zimbabwe Court Approves Urgent Hearing in Pacific Cigarette Tax Dispute

    Zimbabwe Court Approves Urgent Hearing in Pacific Cigarette Tax Dispute

    Pacific Cigarette Company secured approval from Zimbabwe’s High Court for an urgent hearing after it entered into voluntary business rescue over a $19 million tax dispute. The demand from the Zimbabwe Revenue Authority (ZIMRA) rendered Pacific insolvent, threatening the operations of the nation’s second-largest indigenous tobacco producer.

    The case centers on whether the tax obligations imposed on Pacific during its corporate rescue contravene established insolvency protections or represent enforceable liabilities under Zimbabwean law.

    Pacific argues that the tax demand infringes insolvency protection and so its formal request for a tax clearance certificate from ZIMRA should be granted. The authority, through its tax and revenue management system, established conditions for issuing such certificates in 2023, which Pacific asserts it complied with yet faces contested liabilities following ZIMRA’s revised taxation approach for toll manufacturers. This change saddled Pacific with the disputed tax obligations, compounded by ZIMRA’s garnishment of its bank accounts to make sure the money was paid.

    Justice Gibson Mandaza recognized the urgency of Pacific’s application and directed the case to proceed. He said the draft order under challenge required adjudication on its merits, specifically concerning whether a company under corporate rescue is exempt from tax obligations. The court acknowledged that corporate rescue, a process governed by insolvency laws, aimed to enable companies to reorganize their affairs without undue liabilities and needed to be assessed on a case-by-case basis and could not be presumed at the earlier stages.

  • Vapers Bid to Block Iowa E-Cig Regulation

    Vapers Bid to Block Iowa E-Cig Regulation

    Yesterday (March 10), the state of Iowa urged a federal court to deny a motion from a group of vape interests seeking to block enforcement of a newly enacted law prohibiting the sale of e-cigarette products that lack federal authorization, according to Mike Curley for Law360.

    In December, a group called Alternatives to Smoking & Tobacco Inc. filed an injunction against the state of Iowa over HF 2677, which says products not authorized by the FDA are illegal and can’t be sold. The suit says the state violated the U.S. Constitution’s supremacy clause by usurping federal authority as only the FDA has the authority to govern what kinds of e-cigarettes are sold.

    The state argued that because the FDA has not authorized the plaintiffs’ products, those products are illegal and there is no judicial right to buy or sell an illegal product, “and while the FDA may be deferring enforcement, that does not create a binding effect or a legally cognizable right, the state argued, so the plaintiffs lack standing.”

    The state further argued that the plaintiffs haven’t shown they stand to suffer irreparable harm, as the sellers have not alleged they sell FDA-compliant vapes, and thus wouldn’t be able to sell them anyway, while the buyers have more options available than just these vape products if they wish to quit smoking, Curley wrote.

    In February, the parties filed a joint motion to drop the initial injunction as the plaintiffs later that week filed a new motion and supporting brief, arguing HF 2677 runs afoul of the Federal Food, Drug, and Cosmetic Act and also violates the Equal Protection clause by treating some vape makers and sellers differently than others.

    In Monday’s brief, the state argued that no such preemption exists, as it has long been the state’s purview to police the sale of tobacco and tobacco-related powers, and the FDCA contains explicit carveouts allowing states to create stricter regulations for their sale and use.

  • Pakistan: IMF Urges Better Control Over Illicit Trade

    Pakistan: IMF Urges Better Control Over Illicit Trade

    The International Monetary Fund (IMF) raised concerns over tax evasion in Pakistan’s cigarette sector, citing that illicit and untaxed cigarettes now account for up to 50% of the industry. According to sources, concern was raised with Pakistani authorities by the IMF delegation during talks about unlocking a $1 billion loan under the current program.

    Sources said that the IMF urged Pakistan to regulate the illegal tobacco market, with discussions also covering a market study on illicit cigarette trade during a detailed session with the Federal Board of Revenue (FBR) regarding the Track and Trace system.

    The IMF lauded FBR’s Track and Trace mechanism, noting that it has significantly reduced tax evasion across four key sectors—sugar, cement, fertilizer, and tobacco. However, it expressed dissatisfaction over the retail sector’s tax compliance, stressing the need for improved revenue collection.

  • Thailand Turns Up Fight Against Vapes

    Thailand Turns Up Fight Against Vapes

    Thailand’s Office Minister Jiraporn Sindhuprai chaired a meeting with 20 government agencies for the second consecutive week, discussing measures to curb the spread of e-cigarettes. Sindhuprai said they are focusing on three key strategies: strict law enforcement cracking down on illegal e-cigarettes, preventive efforts to curb their spread, and related legal reforms. She also said a proposal to set up a special committee overseeing these efforts has been submitted.

    Thailand’s Digital Economy and Society Ministry blocked more than 9,000 web pages illegally selling e-cigarettes and is working with entrepreneurs to prevent search terms related to such products and shut down websites that attempt to sell them. They are also increasing enforcement on logistics companies that are required to display clear notices prohibiting the shipment of e-cigarettes and accessories, have enhanced security measures, scan suspicious packages, and retain sender data for at least 30 days.

    According to Royal Thai Police, there were 666 vape-related cases between Feb. 26 and March 4, with 690 suspects arrested and 454,958 items worth over 41 million baht ($1.2 million) seized.

  • Cresco Labs Making Mark in KY Cannabis Market

    Cresco Labs Making Mark in KY Cannabis Market

    Chicago-based Cresco Labs Inc. today (March 11) announced it received a management services agreement with a Tier 3 Cultivation License in Kentucky, allowing it to operate a cannabis cultivation facility with up to 25,000 square feet of canopy. It is only the second such license issued in the state.

    Cresco offers cannabis in all forms nationally under brands such as High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, and sells under its Sunnyside brand dispensaries.

    “The Cultivation License allows for the construction of a state-of-the-art cultivation facility with up to 25,000 square feet of canopy, enabling us to deliver the quality and scale we are known for,” said Charlie Bachtell, CEO of Cresco Labs. “We’ve spent the last two years focused on solidifying the core and increasing our free cash flow. Kentucky is our first of many opportunities to reinvest that free cash flow back into high ROIC growth initiatives as we continue expanding into new markets.”

    Launched on Jan. 1, 2025, Kentucky’s medical cannabis program allows for a maximum of 115,000 square feet of approved canopy space and 48 retail licenses. Industry analysts predict the state’s market will generate $135 million in revenue by 2026 and grow to $228 million by 2028.

  • France Wants EU to Raise Tobacco Taxes in Luxembourg

    France Wants EU to Raise Tobacco Taxes in Luxembourg

    Believing higher cigarette prices directly correlate to lesser use, France has continued to tax nicotine products in hopes of reducing smoking in the country. Though the number of cigarettes purchased in the country declined 26% between 2017 and 2022, the same can’t be said of the smoking rate which remains at 29.2%, a slight improvement from 33% in 2017. The problem is that consumers, predictably, will seek out better deals, and in this case need only to cross the border into Luxembourg.

    A pack of 25 cigarettes in Luxembourg costs €8, whereas the same pack across the way in France costs  €15. A recent study by the French Observatory of Drugs and Addictive Tendencies shows that the sales drop for cigarettes at the border is even more dramatic, at 46.2%. As such, French officials are petitioning the EU to level the playing field.

    “Public health policies aimed at reducing tobacco consumption see their effect limited, in particular, because of the development of the parallel market,” French MP Frédéric Valletoux said in a recent motion for a resolution calling for changes to anti-smoking regulations at the European level.

    “Aligning tobacco taxation across the 27 Member States would reduce price disparities and limit cross-border purchases,” according to a report on tobacco published in March 2024 by a European Parliament working group. The report acknowledged the challenges of achieving this goal, as taxation remains outside the EU’s jurisdiction, and price differences between member states continue to widen.

    Another solution being pushed by the French would be to impose tobacco delivery quotas within the EU, as outlined in the World Health Organization protocol to eliminate illicit trade in tobacco products. The quotas would limit tobacco deliveries to each country based on domestic consumption. For example, Luxembourg receives three billion cigarettes annually, despite its domestic consumption being only 600 million.

    Luxembourg is raising the prices on the cheapest cigarettes in its market by €0.30 but otherwise isn’t likely to take more aggressive actions as its Customs and Excise Administration says cigarette sales reached 4.9 billion units in 2024, generating €1.4 billion in revenue for the country. This figure is expected to rise to €1.6 billion in 2025 and €1.9 billion by 2028.

  • CAPHRA Accuses “Foreign Billionaires” of Influencing Tobacco Policies

    CAPHRA Accuses “Foreign Billionaires” of Influencing Tobacco Policies

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) today (March 10) called for greater transparency in global tobacco control governance, citing evidence of external influence in domestic policymaking across Asia-Pacific. The organization has documented patterns suggesting Bloomberg Philanthropies has exercised inappropriate influence over tobacco harm reduction policies in the Philippines, India, Pakistan, Bangladesh, Indonesia, and Vietnam. 

    Nancy Loucas, CAPHRA’s Executive Coordinator, expressed concern with what the organization perceives as ideologically driven approaches. “When foreign billionaires shape national health policies through strategic funding while excluding regional experts, we must question whether public health remains the priority,” Loucas said. “Our investigations reveal instances where domestic policies appear directly influenced by external funding priorities rather than evidence-based approaches.” 

    In February 2025, CAPHRA joined with ARDT Iberoamerica, and CASA Africa in requesting clarification from the United Nations Special Rapporteur for Harm Reduction regarding comments in their report on tobacco harm reduction. The coalition received no response. 

    “The continued silence from the Special Rapporteur underscores a pattern of dismissing stakeholder concerns when they don’t align with predetermined positions,” Loucas said. 

    CAPHRA highlighted the upcoming COP11 as a critical moment for reasserting national sovereignty in tobacco control policy, emphasizing countries that have implemented progressive harm reduction frameworks—such as the Philippines, Japan, and New Zealand. 

     “It’s time to hold global public health institutions to their core mission of protecting health based on science rather than ideology,” Loucas said. 

  • My Father Cigar’s Honduran Factory Rolling Out Cigars

    My Father Cigar’s Honduran Factory Rolling Out Cigars

    My Father Cigars’ Honduran cigar factory is fully operational and expects to be shipping product by late May or early June, Jaime Garcia, a master blender and key figure in the family-owned company, told Cigar Aficionado in an interview. The “My Father Blue” line will be offered in four sizes: Petit Robusto, (4.5 inches by 50 ring gauge), Robusto (5.25 by 52), Toro (6 by 54), and Toro Gordo (6 by 60).

    The 78,000-square-foot factory with a capacity of up to 200 rollers was completed in November and production began in February. Located on 890 acres in Talanga, the property was purchased three years ago in what was previously untouched, overgrown land

    “You couldn’t see the soil,” Garcia said. “It was all bushes but it’s surrounded by rivers. You had richness. When we saw those soils, we had a flashback to Cuba and San Luís. It’s virgin soil and was not a tobacco farm. There are three types of soil on the farm so you can grow stronger and softer tobaccos.”