Jamaica will increase the Special Consumption Tax (SCT) on cigarettes from J$17 to J$20 ($0.11 to $0.13) per stick effective May 1, a move expected to generate approximately $1.1 billion ($7 million) in additional revenue. The measure aligns with Jamaica’s commitments under the WHO Framework Convention on Tobacco Control and comes as lawmakers continue deliberations on broader tobacco control legislation, including regulations on advertising and electronic nicotine delivery systems.
Category: News This Week
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Supreme Court Voids IEEPA Tariffs; New 10% Global Tariff Planned
In a major trade ruling, the Supreme Court of the United States held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs, voiding duties enacted solely under that statute. For the premium cigar sector, the decision nullifies IEEPA-based “reciprocal” tariffs previously applied to imports from Honduras, the Dominican Republic and Nicaragua, though it does not affect federal excise taxes, state tobacco taxes or tariffs imposed under other legal authorities. Industry stakeholders are awaiting implementation guidance from U.S. Customs and Border Protection as the situation develops. Following the ruling, President Trump announced plans to implement a new 10% global tariff under Section 122 of the Trade Act of 1974 and to pursue additional trade actions under Section 301.
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K&H Announces Agenda for Industry Law Symposium
Keller and Heckman LLP announced the agenda for its 10th Annual E-Vapor, Nicotine, and Tobacco Law Symposium, scheduled for May 4–5, 2026, in Las Vegas, Nevada, ahead of the CHAMPS Trade Show. The two-day seminar will feature the firm’s attorneys alongside industry and scientific guest speakers, offering in-depth insights into legal, regulatory and scientific developments affecting tobacco, nicotine and CBD/hemp product manufacturers, suppliers, distributors and retailers. Organizers also reminded prospective attendees that the super early-bird registration rate expires February 20.
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Pakistani Governor Calls for More Revenue to Tobacco Farmers
Faisal Karim Kundi, governor of Khyber Pakhtunkhwa, said the province—Pakistan’s largest tobacco producer—does not receive a fair share of industry profits and tax revenues, despite its significant contribution to national output. Speaking during a meeting at Governor House with Pakistan Tobacco Board Secretary Fakharuddin Khan, officials noted that tobacco is cultivated across districts including Swabi, Mardan, and Charsadda, generating Rs320 billion ($1.2 billion) annually and supporting around 1.2 million livelihoods nationwide, while contributing Rs483 billion ($1.7 billion) in Federal Excise Duty and Sales Tax in FY2024-25. The governor called for greater reinvestment in the province, stronger farmer protections, transparent procurement, adoption of modern farming practices and expanded exports to bolster both provincial and national economic stability.
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Myanmar Bans Vapes
Myanmar officially banned the import, export, sale, possession, and use of e-cigarettes, e-shisha and related accessories under an order issued by the Ministry of Health following Cabinet authorization. Enforced under the Essential Supplies and Services Law, the sweeping prohibition targets vaping products amid rising youth uptake. Deputy Director General Kyaw Kan Kaung said the move aims to protect public health, rejecting claims that e-cigarettes are safer than traditional cigarettes.
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Zimbabwe Hopes PMI Return Stabilizes Tobacco Market
Philip Morris International is set to re-establish its presence in Zimbabwe nearly two decades after exiting the market, with a high-level delegation led by Chief Corporate Affairs Officer Christos Harpantidis scheduled to visit Harare this week following talks between Foreign Affairs Minister Amon Murwira and PMI executives at the World Economic Forum in Davos. Discussions are expected to focus on value addition, local manufacturing, sustainability and ESG standards, aligning with the Government’s Tobacco Value Chain Transformation Plan to grow the sector into a $5 billion industry as planted hectarage for 2025/26 rises 42%.
Industry observers say PMI’s return could help offset reduced purchases from China Tobacco International Group, which plans to cut Zimbabwe orders by up to 15%, potentially stabilizing demand for the country’s 120,000 smallholder farmers. While some analysts caution about global anti-smoking trends, others view the move as renewed investor confidence and a boost to diversification, especially as PMI signals interest in integrating Zimbabwe more deeply into its global supply chain.
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BAT Funds $48M for Organigram’s Sanity Group Acquisition
Organigram Global Inc. revealed that it has entered into a subscription agreement with BT DE Investments Inc. – a wholly-owned subsidiary of British American Tobacco – to fund its previously announced acquisition of Sanity Group GmbH. Under the agreement, BAT will subscribe for 14,027,074 common shares at C$3 ($2.19) each and exercise top-up rights for 9,897,356 additional shares at C$2.335854 ($1.71), generating total gross proceeds of C$65.2 million ($47.6 million).
The proceeds, along with cash on hand and funds from a previously arranged up to $60 million senior secured credit facility, will be used to finance the cash portion of the acquisition, transaction costs, and general working capital. To ensure BAT does not exceed a 30% ownership threshold post-issuance, the company will issue non-voting Class A convertible preferred shares if needed, which can be converted into common shares under specified conditions. Shareholder approval for the acquisition and private placement will be sought at Organigram’s annual and special meeting on March 30, in compliance with TSX rules and related-party transaction regulations. The Board unanimously approved the deals, with BAT’s nominees abstaining from voting.
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Tobacco Associates Hosting 79th Annual Meeting March 6
Tobacco Associates will hold its 79th Annual Meeting on March 6, at the Wilson County Agricultural Center, from 10 a.m. to 12 p.m., followed by lunch. This year’s theme, “Beyond the Bale: Building Value through Partnership,” will emphasize the importance of collaboration in strengthening export promotion efforts and expanding global opportunities for U.S. flue-cured tobacco.
The program will feature remarks from Scott Sink, president of the Virginia Farm Bureau; Kristi Boswell, agriculture regulatory counsel at Alston & Bird, who will provide updates on H-2A AEWR litigation; Dr. Jeffrey Dorfman, Hugh C. Kiger Distinguished Professor at North Carolina State University, discussing planting considerations and economic outlooks; Scott Gupton, Country manager at Alliance One International, presenting the global flue-cured outlook; and Kimberly Foley, executive director of TA, delivering the association’s annual export promotion report. Staff members representing members of Congress and candidates are also expected to speak.
TA’s programs are designed to stimulate export demand for all U.S.-produced flue-cured tobacco. Attendees are asked to confirm participation by March 3.
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Retailer Offers Comprehensive UK Vape Tax Guide
Vape and Go, a UK-based online vape retailer, released an updated, comprehensive UK vape tax guide to explain HMRC’s upcoming Vaping Products Duty, set to take effect on October 1. The guide outlines the confirmed flat-rate tax of £2.20 per 10ml of vaping liquid, including nicotine-free products, and details the new Vaping Duty Stamps scheme, which requires stamps to be affixed to all retail packaging. The guide also clarifies timelines for registration, duty calculation examples for popular pod and refill formats, and what remains pending, such as the personal duty‑free allowance. Founder Salman Essap emphasized that the guide aims to help adult customers and the retail supply chain understand compliance requirements and navigate the changes as the tax comes into force.
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Thai Smugglers Move to ‘Ant-Worker’ Tactics as Seizures Increase
The Thai Customs Department has intensified its crackdown on tax-evading goods, seizing more than 27.3 million foreign cigarettes and 205,445 e-cigarette units worth an estimated 169.6 million baht ($5.4 million) between October 2025 and mid-February 2026. Director-General Phanthong Loykulnunt said smuggling networks have shifted to “ant-worker” tactics, moving contraband in small parcels via private couriers and concealing goods in commercial lorries to evade checkpoints, prompting authorities to deploy handheld X-ray scanners nationwide. Major operations included a Central Thailand raid with Mae Klong Customs that uncovered 12.5 million cigarettes valued at 62 million baht ($2 million), seizures worth 36 million baht ($1.2 million) in Songkhla and Tak Bai, and a Bangkok raid in Khan Na Yao district that netted hybrid e-cigarettes and IQOS devices worth 10 million baht ($320,000). At Bangkok Port, Customs and the Department of Special Investigation inspected seven overdue containers, discovering over 46,000 disposable vapes hidden among legitimate cargo.