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Category: News This Week

  • Pakistan Intensifies Illegal Tobacco Crackdown

    Pakistan Intensifies Illegal Tobacco Crackdown

    Pakistan continues to step up enforcement actions against illicit cigarette manufacturing and non-duty-paid tobacco products, with advocacy group ACT Alliance Pakistan praising recent government efforts led by the Federal Board of Revenue (FBR). The group said ongoing operations targeting smuggled brands, counterfeit tax stamps, and violations of the Track and Trace Systems are aimed at protecting tax revenue and formal businesses, estimating that the illegal cigarette trade costs the country more than Rs300 billion ($1.1 billion) annually.

    ACT Alliance Country Director Mubashir Akram said sustained enforcement is essential to prevent tax evasion networks from undermining the formal economy, adding that illicit trade is increasingly structured across manufacturing, distribution, and retail channels. He also warned that regulatory pressure must be consistent rather than episodic and called for stronger coordination among enforcement agencies, including Customs, Inland Revenue, and provincial authorities. The group further argued that tackling illicit tobacco is linked to broader investor confidence, stating that perceptions of enforcement effectiveness influence both domestic and foreign investment decisions.

  • Bidi Workers Form Human-Chain Protest in Bangladesh

    Bidi Workers Form Human-Chain Protest in Bangladesh

    Bangladesh bidi workers staged a human chain protest in Pabna on May 24, opposing proposals to raise bidi prices and increase supplementary duty in the country’s 2026–27 national budget. Members of the Pabna District Bidi Workers Union objected to recommendations from Atma-Pragya and Ahsania Mission to increase bidi prices from Tk 18 to Tk 30 ($0.15 to $0.24) and raise supplementary duty from 30% to 50%.

    During the demonstration, workers presented a five-point demand that included maintaining current bidi tax rates, increasing working days for bidi workers, enforcing bandroll use only for licensed factories, raising prices on low-tier cigarette packs, and cracking down on counterfeit bidi production and sales. Leaders from the Bangladesh Bidi Workers Federation participated in the protest and warned that higher taxes could further pressure workers employed in the sector.

  • BAT Malaysia Reports First-Ever Loss

    BAT Malaysia Reports First-Ever Loss

    British American Tobacco Malaysia reported its first quarterly loss since the company’s formation through the 1999 merger of Rothmans of Pall Mall (Malaysia) and Malaysian Tobacco Company, citing rising regulatory costs and worsening illicit cigarette trade in Malaysia. The company posted a net loss of RM35.2 million ($8.8 million) for the first quarter ended March 31, compared with a net profit of RM23.3 million ($5.8 million) a year earlier, while revenue declined to RM160.3 million ($40 million) from RM322 million ($80.5 million).

    Operating expenses increased 74.7% year-over-year to RM64.68 million (16.2 million), driven largely by one-off costs tied to the implementation of Malaysia’s retail tobacco display ban and restructuring linked to a new route-to-market strategy. BAT Malaysia said legal combustible cigarette volumes fell 4.5% during the quarter, while illicit cigarette incidence rose to 56.7% of total industry volume from 54.4% in the prior quarter, marking the first increase since 2021.

    The company declared a first interim dividend of five sen ($0.0125) per share, down from 7.5 sen ($0.0188) a year earlier. Management said the first quarter represented a transition period as the company implemented operational changes intended to improve long-term competitiveness and efficiency.

  • France Sets Steep Fines in Pouch Ban

    France Sets Steep Fines in Pouch Ban

    France implemented a broad ban on oral nicotine products, including nicotine pouches, with violations carrying penalties of up to five years in prison and fines reaching €400,000. The restrictions cover the use, possession, acquisition, and sale of nicotine pouches and certain nicotine lozenges, while exempting cigarettes, vaping products, and approved smoking-cessation products such as nicotine gums and inhalers.

    French health authorities said the measure was driven by concerns over nicotine addiction, youth marketing, and potential health risks linked to high-dose nicotine products. The French Agency for Food, Environmental and Occupational Health & Safety previously warned that nicotine pouch promotion had become widespread on social media platforms targeting younger consumers. France is the first European country to criminalize possession and use of nicotine pouches, going beyond restrictions already introduced in countries including Belgium, Germany, the Netherlands, and Austria.

  • IQOS Ranks No. 74 in Global Brands

    IQOS Ranks No. 74 in Global Brands

    Philip Morris International said its IQOS heated tobacco brand has entered Kantar’s BrandZ 2026 ranking of the world’s 100 most valuable global brands for the first time, debuting at No. 74. The recognition marks a milestone for IQOS as PMI continues expanding its smoke-free portfolio and positioning the brand beyond traditional tobacco categories through technology, design, and reduced-risk product innovation.

    PMI said IQOS now has more than 35 million users globally, with the majority having fully transitioned away from cigarettes. The company also noted that IQOS surpassed $10 billion in annual net revenues within a decade of launch, contributing significantly to PMI’s broader smoke-free business, which generated nearly $17 billion in net revenues in 2025. The company has increasingly centered its long-term growth strategy around smoke-free products, including heated tobacco and nicotine alternatives.

    The Kantar BrandZ rankings evaluate global brands using a combination of financial performance and consumer brand equity research across more than 22,000 brands in 54 markets. IQOS joined a list that includes major global technology and consumer brands such as Google, Alibaba Group, and Xiaomi.

  • JTI, Authorities Trying to Dent Malaysia’s Illicit Market

    JTI, Authorities Trying to Dent Malaysia’s Illicit Market

    Japan Tobacco International said the illicit cigarette trade remains a major challenge in Malaysia, with counterfeit tax stamps and increasingly sophisticated cross-border smuggling operations complicating enforcement efforts. According to JTI Malaysia, the share of illicit cigarettes carrying counterfeit Malaysian tax stamps rose from 8.7% in 2023 to 16% in January 2026, the highest level recorded. The company cited a recent enforcement operation in the Philippines that uncovered counterfeit Malaysian tax stamps allegedly intended for the Malaysian market.

    JTIM estimated the country’s illicit cigarette incidence rate at 56.7%, representing roughly RM4 billion ($1 billion) in lost government revenue. Company executives said affordability remains a key driver of illicit trade, warning that rising logistics costs, raw material inflation, and potential excise tax increases could widen the price gap between legal and illicit products. The company also pointed to growing consumer migration toward alternative nicotine products such as vapes, which currently face lower taxation levels than cigarettes.

    JTIM said policymakers are evaluating stronger deterrence measures, including digital tax stamps designed to improve supply-chain tracking and real-time product authentication. The company also called for a more balanced tax framework across nicotine categories, advocating for vape taxation to align more closely with heated tobacco products rather than combustible cigarettes.

  • Vietnam Considering Generational Ban

    Vietnam Considering Generational Ban

    Vietnam’s Ministry of Health proposed banning people born on or after January 1, 2010, from purchasing or using tobacco products as part of broader amendments to the country’s tobacco control law. The proposal was presented during a workshop tied to World No Tobacco Day 2026 and forms part of efforts to create a “smoke-free generation” in the country.

    The proposed revisions would also prohibit the production, sale, transport, advertising, promotion, sponsorship, and use of e-cigarettes, heated tobacco products, and other next-generation nicotine products, and would additionally ban tobacco product displays at wholesale and retail outlets. Health officials said the measures are intended to reduce smoking rates, limit secondhand smoke exposure, and address rising youth nicotine use.

  • BAT Kenya Says Proposed Laws Threaten 100K Jobs

    BAT Kenya Says Proposed Laws Threaten 100K Jobs

    British American Tobacco Kenya warned that proposed amendments to Kenya’s tobacco control laws could cost the government an estimated Sh12 billion ($92 million) in annual revenue and threaten more than 100,000 jobs across the tobacco supply chain. In a memorandum submitted to Kenya’s National Assembly, BAT Kenya said provisions in the Tobacco Control (Amendment) Bill, 2024, could worsen the illicit cigarette trade, which the company estimates already accounts for about 45% of the country’s cigarette market.

    The proposed legislation includes bans on flavors in tobacco and nicotine products, tighter regulation of e-cigarettes and nicotine pouches, expanded graphic warning requirements, potential plain packaging rules, additional licensing obligations for retailers, restrictions on single-use plastics, and a proposed 100-metre limit on tobacco sales locations. BAT Kenya also objected to plans to classify electronic cigarettes and oral nicotine pouches as tobacco products, arguing the bill does not distinguish between combustible and non-combustible nicotine products.

    BAT Kenya Managing Director Crispin Achola said the company supports public health goals but called for a more balanced and evidence-based regulatory framework. The company urged lawmakers to conduct broader stakeholder consultations and pointed to countries including the United Kingdom, Sweden, and New Zealand as examples of markets using differentiated regulation for alternative nicotine products.

  • Fight Over Foreign-Sourced Vape Ban Continues in Texas Appeals Court

    Fight Over Foreign-Sourced Vape Ban Continues in Texas Appeals Court

    Texas officials are asking the U.S. Court of Appeals for the Fifth Circuit to dismiss a lawsuit challenging a state law that restricts the sale of e-cigarette products containing liquids sourced from China and other designated foreign adversaries. According to court filings, the acting Texas comptroller argues the office is protected by sovereign immunity and should not be subject to the lawsuit brought by vape companies and the Vapor Technology Association.

    According to Law 360, the dispute centers on a recently enacted Texas law targeting vape products tied to countries identified as foreign adversaries, adding another layer to the increasingly complex regulatory environment facing the U.S. vaping sector. Texas officials have also argued in earlier filings that the plaintiffs lack standing and that claims about business harm remain speculative.

  • Vape Companies Challenge Pa. E-Cigarette Law in Federal Court

    Vape Companies Challenge Pa. E-Cigarette Law in Federal Court

    Several vape manufacturers and retailers have filed a federal lawsuit challenging a new Pennsylvania law they say would effectively remove most e-cigarette products from the market by limiting sales to products authorized by the U.S. Food and Drug Administration. The plaintiffs, including Puffbar Inc., Mi-One Brands LLC, American Vapor Manufacturers Association, and Pennsylvania-based vape retailers and distributors, argue the statute is unconstitutional, conflicts with federal authority over tobacco regulation, and could force businesses to absorb roughly $2 million in unsellable inventory.

    According to Law 360, the lawsuit contends that the Pennsylvania law improperly intrudes into areas governed by the FDA’s premarket tobacco application process and unfairly targets products that some federal officials and public health researchers have described as potentially useful for adult smoking cessation. Industry groups also argue the measure could disproportionately affect independent vape retailers and smaller manufacturers already facing mounting regulatory pressure across the U.S. market.