Category: News This Week

Vietnam Wants to Raise Tobacco Taxes

Photo: Tobacco Reporter archive
Vietnam’s finance ministry want to raise the excise duty on cigarettes and add an absolute rate per pack, reports Tuoi Tre News.
The current excise duty on tobacco in Vietnam is 75 percent of the factory price but only 38.8 percent of the retail price, according to the World Health Organization.
This share is much lower than in Singapore, where tax accounts for 69 percent of the cigarette retail prices, or Thailand, where it is 70 percent.
To protect public health, the ministry has proposed two solutions. The first involves keeping the 75 percent excise tax unchanged in 2026 but adding an additional tax of VND2,000 ($0.07) per pack.
From 2027 to 2030, the tax would then be revised up by VND2,000 per pack each year under this proposal until the absolute rate reaches VND10,000 per pack in 2030.
As an alternative, the ministry has proposed keeping the 75 percent tax unchanged in 2026 but subjecting cigarettes to an absolute rate of VND5,000 per pack.
This tax will then increase by VND1,000 per pack each year until it reaches VND10,000 per pack in 2030.
More than 42 percent of adults smoke in Vietnam, which is among the top 15 countries with the highest smoking prevalence.
July 22, 2024
Russia Sues Dutch Owner of Megapolis

Image: somemeans
The Russia government is seeking to suspend the corporate rights of Megapolis Distribution, the Dutch owner of Russian tobacco distributor Megapolis Group, reports Interfax.
On July 18, Russia’s Industry and Trade Ministry filed a lawsuit against Megapolis Distribution in the Arbitration Court of the Moscow Region, according to records.
The Russian company was earlier included in Russia’s list of economically significant organizations.
The court has agreed to hear the lawsuit, and the first hearing is scheduled for August 8.
Shortly after Russia’s invasion of Ukraine in February 2022 and just before the EU imposed sanctions on him, Russian billionaire Igor Kasaev, who owns 40 percent of Megapolis, funneled €8 million ($8.71 million) through the Netherlands, according to the NL Times.
Kasaev is known to have ties to the Kremlin and the Russian arms industry. He keeps his shares in Megapolis, the largest distributor of cigarettes in Russia, in the letterbox company registered in The Hague. The sanctions froze Kesaev’s assets in his Hague company, “trapping” some €650 million in assets in the Netherlands.
July 22, 2024
Zimbabwe Pioneers Centralized Curing

Photo: Taco Tuinstra
Zimbabwe’s Tobacco Industry and Marketing Board and Boost Africa have jointly introduced a centralized curing business system for smallholder tobacco farmers, reports News Day.
According to Boost Africa representative Henry Dike, the system will not only reduce production cost and efficiency but also boost sustainability.
Smallholders in Zimbabwe have traditionally cured their tobacco individually. Most use wood as a fuel source, which has led to concerns about deforestation.
“By providing them with the necessary resources and training, we are not just improving their yield but also elevating their entire farming operation to a commercial level,” said Dike.
“It’s not just about financial gains; it’s about creating a sustainable, scalable farming practice that can be replicated across the country,” he added.
Tafadzwa Mukarakate, agronomist and head of the Zimbabwe Farmers’ Union, said the project was critical in ensuring that farmers have the means to reinvest in their operations.
“The success of this project is a clear indication that with the right support, smallholder farmers can achieve commercial success,” he said.
July 21, 2024
Philippines Halts Online Vapes Trade

Photo: Ranta Images
The Philippine government has halted the sale, advertising and distribution of vape products online, reports the Inquirer.
“This is a temporary suspension until the e-marketplaces are able to convince us of their compliance with their obligations under Republic Act No. 11900, or the vape law, and other laws and related issuances,” said Trade Secretary Alfredo Pascual on July 19.
According to Pascual, the order was prompted primarily by the need to prevent the sale of vape products to minors and ensure that those being sold online meet the safety standards set by law.
Vape companies and online sales platforms must submit a sworn certification of their compliance with the law to be allowed to resume sales.
A recent investigation by the Department of Trade and Industry (DTI) of 90,000 companies engaged in the vape business revealed that 284 had violated various laws, by selling vapes within 100 meters of a school or by using flavors designed to appeal to minors, for example.
The DTI has confiscated at least PHP32.76 million ($561,454.25) worth of vape products so far this year, mostly for being offered for sale without proper certifications, like the Philippine Standard mark and the Import Commodity Clearance sticker.
In June, the department ordered the mandatory certification of vape products in compliance with the Vape Act, which lapsed into law in July 2022.
While supporting the DTI in its efforts to protect consumers and prevent youth access to vaping products, the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) said an outright suspension of online sales would not solve the problem.
Instead, the organization argued for greater enforcement of existing laws.
“While the intention behind the suspension is commendable, CAPHRA believes that a more effective approach would be to enhance enforcement measures rather than imposing outright bans that could inadvertently drive consumers back to more harmful combustible tobacco products,” said CAPHRA representative Clarisse Virgino.
July 21, 2024
JTI to Build Factory in Morocco

Image: REC and ROLL
Japan Tobacco International will break ground in August for a MAD931 million ($92 million) factory near Tangier, Morocco, reports Morocco World News.
“This is a historic moment that marks the beginning of a new era for JTI in North and West Africa,” said Jose Luis Amador, general director of JTI Northern and Western Africa.
He praised the support from Moroccan authorities, which he described as exemplary and in line with Morocco’s reputation for a favorable business environment.
Once operational, the facility will create 170 direct jobs and numerous indirect employment opportunities in the region, according to JTI, which aims to hire 30 percent women at its new facility.
The factory will be built on a 4.7-hectare site with an 18,000-square-meter built area. It will implement energy efficiency measures, such as LED lighting and automated climate control systems. Additionally, a rainwater collection and recycling system will be installed to handle nonpotable water needs.
July 21, 2024
Georgia to Require Production Licenses

Photo: Taco Tuinstra
Georgian lawmakers approved legislation requiring tobacco manufacturers to obtain licenses, reports Front News Georgia. They set the license fee at GEL50,000 ($18,521.26).
The amended Law On Tobacco Control mandates licenses for activities such as slicing, coating, dipping and mixing raw tobacco, as well as the production of cigarettes. The packaging of finished tobacco products and cigarettes also falls under the new licensing requirements.
Excluded from the licensing requirements are tobacco importers, leaf growers and primary processors.
The government will determine the specific rules and conditions for obtaining a tobacco production license through a normative act.
An explanatory note accompanying the draft law highlighted the importance of improving and strengthening the tobacco production process to reduce the use of harmful raw materials. According to the note, high-tech processing by reputable manufacturers can improve health protection standards for smokers.
July 20, 2024
Romania Restricts ENDS Promotions

Photo: cristianbalate
Romania has tightened advertising restriction on electronic nicotine devices and modern oral products, reports Xinhua.
Under new legislation signed into law by President Klaus Iohannis on July 19, the rules cover e-cigarettes, heat-not-burn products and nicotine pouches.
Explicit advertising for these products is now banned on radio and television broadcasts and on public transportation tickets.
Furthermore, the legislation prohibits advertising for these products within educational and healthcare institutions or within 200 meters of their entrances.
The law also restricts advertising in publications primarily targeting minors and in theaters before, during and after performances intended for children.
July 20, 2024
PTC Risks Losing Sudan Small-Pack Order

Image: Maksym Kapliuk
Pakistan Tobacco Co. (PTC) may lose a large order from Sudan if the health ministry continues to drag its feet on the required regulatory approval, reports the Business Recorder.
Sudan has ordered $20.5 million worth of cigarettes, to be delivered in packets of 10 sticks of cigarettes each, from PTC. The sale of such packs is prohibited in Pakistan but allowed in Sudan.
Prime Minister Shehbaz Sharif has granted PTC’s request for an exemption of the small-pack prohibition for exports, but the Ministry of Health has failed to issue the required amendment in the statutory regulatory order.
Due to the delay, Sudan has now started contacting other countries to meet its domestic demand. A PTC official said that if Pakistan does not allow exporting cigarettes in small packets, the order may be shifted to Bangladesh or Indonesia.
PTC has been exporting cigarettes since 2019 and has so far earned $156 million, bringing much-needed hard currency into Pakistan. For the next fiscal year, the company is targeting $60 million in exports.
In the most recent fiscal year, the company paid PKR148 billion in federal excise duty and sales tax.
It’s not the first time PTC has lost business due to the small-pack restrictions. In 2019, the company lost an export order to the Gulf. At that time, the Ministry of Commerce had given permission for exports, but the Ministry of Health withheld approval.
July 20, 2024
Cooks Islands Ban Vape Trade

Photo: Stella Kou
The Cook Islands has banned the manufacture, importation, sale, distribution and advertising of cigarette alternatives such as e-cigarettes, reports Cook Island News.
The new Tobacco Products Control Amendment Act 2024 also raises the legal age of sale for tobacco products from 18 years to 21 years and prohibits smoking in nearly all public places.
The act requires those who want to sell and import tobacco to apply for permits. To date, the Ministry of Health has approved 37 of 43 applications. The authorized retailers can start selling tobacco from Aug. 1, 2024. The remaining applications are pending approval for further information, according to Secretary for Health Bob Williams.
The new rules also prohibit internet sales of tobacco products except when used by importers and distributors for business-to-business transactions. Violators risk fines of up to $10,000 or prison terms of up to three months.
Tobacco product displays are banned as well.
July 20, 2024
Sonoco Announces 3-Piece Can
Image: Sonoco Industrial & Specialty Plastics
Sonoco Industrial & Specialty Plastics has launched the Sonoco 3-Piece Can for tobacco and other products.
“The inspiration behind the 3-Piece Can stems from the challenges we’ve learned many manufacturers face, particularly in the chewing tobacco industry,” said Curtis Bares, global director of sales and marketing for Sonoco Industrial & Specialty Plastics.
“The burden of ordering cans from overseas results in extensive lead times, increased inventory levels and excess packaging waste. That’s why we’ve embarked on a journey to develop a locally molded polypropylene can to alleviate these pain points.”
The can is an injection-molded, 3-piece food-grade polypropylene set to be manufactured entirely in Forest City, North Carolina, USA. According to Sonoco, the company’s factory is FDA-registered and ISO-9001 certified, equipped with state-of-the-art machinery and a robust quality management system to guarantee adherence to specifications and sustainability standards.
Sonoco lists the following benefits for its new product:
A dual-compartment design offering flexibility with two separate moisture-resistant compartments
Compact dimensions of 2.75” in diameter and 0.940” in depth
Eco-friendly makeup from single-resin material, recyclable in areas with proper collection infrastructure
Made in the USA, supporting local manufacturing and reducing carbon footprint
Just-in-time supply management, ensuring optimal inventory levels and minimizing storage costs
Efficient packaging design with reduced waste and minimal use of corrugate
Stackable design for ease of transportation and storage, ensuring product integrity
For more information, visit sonoco.com/plastics.
July 19, 2024