Category: Featured

Philippine Tax Reform Paid Off: Study

Image: RODWORKS
Repeated increases of “sin taxes” in the Philippines have not only driven down smoking prevalence, but also boosted the government’s health budget, reports The Philippine Star, citing a working paper published by the Institute for Leadership, Empowerment and Democracy.
More than 10 years after the passage of the landmark 2012 Sin Tax Reform Law, the study found that sin tax reforms on alcohol, tobacco, e-cigarettes, vape and heated tobacco products have generated PHP1.1 trillion ($21.66 billion) in additional revenue above the 2012 baseline.
The annual health budget increased six-fold to PHP309 billion in 2023 from PHP53 billion in 2013. Despite the higher taxes, cigarettes remain affordable, at PHP100 per pack and PHP5 per stick, according to the report.
From 2012 to 2022, real value of tobacco production has grown by 6.6 percent. However, the researchers noted that these findings must be validated through individual-level surveys of tobacco farmers.
Given the resilience of the tobacco business over the past decade, the author’s concluded that there is room for further tax increases.
December 24, 2023
Pakistan Unlikely to Meet Tracing Deadline

Image courtesy of Syed Rashid Ali
Pakistan is unlikely to meet the December deadline for full implementation of a new track-and-trace system for tobacco products, reports The News International.
While leading manufacturers, such as Pakistan Tobacco Co. (PTC), Philip Morris International and Khyber Tobacco Co. have incorporated the system into their production facilities, other manufacturers, including Civil Tobacco, Frontier Leaf Tobacco, Falcon Cigarettes Industry, Indus Tobacco Co. and Maneri Tobacco International, have done so only partially. Yet other companies have either refused to comply or dragged their feet, citing technical and financial difficulties.
The partial implementation raises concerns about the effectiveness of the track-and-trace system, which relies on barcodes, unique identification numbers and a central monitoring system to track the movement of tobacco products from production to sale.
“The track and trace system must be implemented across the industry for it to be successful and yield the desired results,” an industry official was quoted as saying. “Secondly, comprehensive and effective enforcement needs to be carried out to ensure that no pack of cigarettes is sold without a stamp.”
The system has been successful in other countries, such as Turkey, Brazil and Kenya, where it has helped reduce tax evasion and illicit trade in the tobacco industry. Industry officials urged Pakistan’s Federal Board of Revenue to take strict action against the non-compliant manufacturers and enforce the system across the industry.
December 24, 2023
Zimbabwean Leaf Exports Top $1 Billion

Photo: Taco Tuinstra
Zimbabwe earned $1.2 billion from tobacco exports in 2023, compared to $975 million this previous year, reports The Herald.
As of Dec. 15, the country had exported 233.9 million kg of the golden leaf, according to the Tobacco Industry and Marketing Board (TIMB).
The average price for the shipments was $5.23 per kg, up from $4.96 a kg during the same period in 2022.
In the comparable 2022 period, Zimbabwe shipped 196.57 million kg.
The bulk of Zimbabwean tobacco is exported to countries in the Far East. In 2023, the nation shipped 109.45 million kg to that region, raking in $779.2 million at an average price of $7.12 per kg.
Africa is the second largest consumer of flue-cured tobacco from Zimbabwe, having consumed 40.84 million kg valued at $141.6 million in 2023.
Despite the late onset of the rains and the decreased number of registered growers, stakeholders are optimistic about achieving the targeted 300 million kg crop in 2024.
As of Dec. 15, 2023, the number of registered growers was 112,447, compared to 144,446 in the same period last year.
Ninety-four percent of the registered growers are contracted.
December 22, 2023
ECLAT Study Celebrates 10-Year Anniversary

Photo: Wlodzimierz
The Center of Excellence for the acceleration of Harm Reduction (CoEHAR) is celebrating the 10^th anniversary of the ECLAT study, which according to the organization marked a significant shift in the science of harm reduction.
Riccardo Polosa
The project began in 2011 when a research group led by Riccardo Polosa of the University of Catania in Italy decided to evaluate the use of e-cigarettes on a sample of smokers who wanted to quit.
After two years of recruitment and follow-ups, the first randomized controlled trial on electronic cigarettes came to light. The ECLAT study provided evidence for the first time that the e-cigarette could help people—even those who had no desire to give up smoking—quit combustible cigarettes.
The ECLAT study subsequently became a source of inspiration for researchers worldwide. Even then, despite the technical limitations of vaping products at that time, the study showed that at the 52nd week, 8.7 percent of smokers using e-cigarettes quit smoking, while 10.3 percent reduced the consumption of traditional cigarettes by at least 50 percent. Moreover, 73.1 percent of those who had quit did not use the e-cigarette at the end of the study.
Although these data may appear modest today, the ECLAT study paved the way for a line of research that now engages thousands of researchers worldwide. The most recent Cochrane literature review—which also incorporates the ECLAT study—confirms what was revealed in Catania 10 years ago: e-cigarettes are effective tools in the fight against smoking.
Reflecting on the ELCAT research, Polosa called for continued innovation and evaluation. “If we want to definitively erase the history of smoking, we must continue with research, encouraging continuous innovation and evaluation studies,” he said in a statement. “Harm reduction can and is already saving millions of lives. The path is the right one and must be followed to the end.‘”
December 22, 2023
Flavored Vapes Still Available After Ban

Image: Olga
Californians, including minors, are still able to buy flavored vapes online a year after the state enacted a ban on such products, reports The Conversation, citing a study published in Jama Network Open.
In effect since Dec. 21, 2022, California Senate Bill 793 prohibits the sale of most flavored tobacco products, including e-cigarettes, to people of all ages. Hookahs, premium cigars and loose-leaf tobacco are exempted from the legislation.
Posing online as minors under the age of 21, researchers tried to buy flavored e-cigarette products from 26 websites that sold them in California. Before SB 793, they succeeded in 52 percent of attempts. After SB 793, the team’s success rate rose to almost 61 percent.
The study did not explain why flavored e-cigarettes are still available from online retailers in California. “It may be that vendors are flouting the new law, are ignorant of it, or do not believe the new law applies to online sales,” speculated corresponding author John-Patrick Allem, associate professor of social and behavioral sciences at Rutgers University.
Allem urged authorities to conduct a comprehensive evaluation of SB 793 compliance among brands and vendors that sell their products online in California to help determine the extent to which flavored e-cigarettes are still available.
Another research team collected weekly Google search rates related to online shopping for cigarettes and vaping products in California from January 2018 to May 2023. They found that shopping queries were 194 percent higher than expected for cigarettes and 162 percent higher than expected for e-cigarettes—which according to the authors suggests consumers are searching on Google for vendors promoting banned products.
December 22, 2023
Tobacco Theft Down in Brazil

Photo: Souza Cruz
A program to prevent container theft in southern Brazil is proving successful, according to the Interstate Tobacco Industry Union, SindiTabaco.
In 2019, the sector recorded 26 thefts throughout the region; in 2022, there were only eight, and only one of these occurrences took place in Rio Grande do Sul, the center of Brazil’s cigarette tobacco industry.
In 2023, the industry lost six containers to theft, including four raw tobacco cargoes and two containers with processed tobacco for export.
Iro Schuenke
During a Dec. 12 meeting with public security officials, SindiTabaco president Iro Schuenke urged stakeholders to remain vigilant as movements of containers intensify during the next months.
Thieves are increasingly targeting processed tobacco, he noted, citing recent thefts of cargos heading to the port of Rio Grande.
During the meeting, participants discussed theft-prevention measures such as increased police escorts, traveling in truck convoys and predetermining stops for drivers.
Tobacco exporters and shippers, meanwhile, are evaluating ways to reduce the time it takes for the containers to arrive at the port, so as to avoid, for example, evening transportation.
“If evening transportation is absolutely necessary, the companies can previously contact the security organs asking for an escort to accompany the truck”, said Regional Police Chief Officer Luciano Fernandes Menezes.
To help tobacco shippers improve security, SindiTabaco has prepared an information leaflet with best practices.
December 22, 2023
Zimbabwe Growers Plant 55,170 Hectares

Photo: Taco Tuinstra
Tobacco growers have planted 55,170 hectares of leaf for the 2023–2024 season in Zimbabwe, reports The Sunday Mail.
Last year, the country’s tobacco farmers planted 57,411 ha, according to the Tobacco Industry and Marketing Board (TIMB), which regulated the trade in Zimbabwe.
This year’s figure includes 19,202 hectares of irrigated tobacco and 35,968 of dryland tobacco.
Meanwhile, 112,447 growers have registered with the TIMB.
Zimbabwe’s tobacco growers delivered nearly 300 million kg this year, which are currently being processed, sorted and exported. As of November, the country had exported more than 210 million kg of tobacco worth more than $1 billion.
As part of the government’s Tobacco Value Chain Transformation Plan, Zimbabwe aims to build a $5 billion tobacco industry by 2025.
December 22, 2023
RELX Recognized for Sustainability

Image: RLX Technology
RLX Technology’s (RELX) score rose 13 percent in S&P Global’s most recent corporate sustainability assessment. The company ranked first among all global e-cigarette companies for the second consecutive year.
The Chinese company scored well above the industry average in many ESG topics, such as product innovation management, business ethics, talent development, greenhouse gas emissions and transparency of information disclosure.
“RELX views sustainability not just as a goal but as a fundamental part of our DNA,” said RELX Senior Manager for External Affairs Elgin Seah in a statement. “The impressive rating from S&P Global reaffirms that our efforts in environmental conservation, social responsibility and corporate governance are making a meaningful difference.”
In addition to complying with China’s recently created product standards for e-cigarettes, RELX has established a full life-cycle quality assurance program to ensure product quality and safety in a holistic manner.
December 22, 2023
Cambodia urged to raise tobacco taxes

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The World Health Organization and the Cambodia Movement for Health Organization have urged the Cambodian government to increase tobacco taxes, reports the Khmer Times.
Cambodia levies comparatively low taxes on tobacco products. Domestically produced cigarettes attract a duty of 25 percent, and imported cigarettes are taxed at a rate of 31 percent. According to the Ministry of Economy and Finance, Cambodian tobacco product taxes are 20 percent lower than in other ASEAN countries.
According to the WHO, increasing tobacco taxes is the single most effective way of reducing tobacco use and associated health problems. A recent WHO study found that raising the price of a pack of cigarettes by KHR500 ($0.12) now would not only deter at least 30,000 people from smoking next year but also prevent 10,000 deaths in the next 10 years and generate tax revenues of approximately $53 million per year.
Between 2011 and 2021, the number of smokers in Cambodia increased from 1.47 million to 1.63 million, according to the Public Health Centre.
December 21, 2023
Illicits Top Quarter Of Ukrainian Market

Image: IvanSemenovych
The share of illegal tobacco products reached 25.7 percent of the Ukrainian market in October, up from 19.5 percent in June and 20.2 percent in February, reports Interfax-Ukraine, citing data from the most recent Kantar Ukraine study.
The figure represents the highest share since Kantar began collecting information on the Ukrainian tobacco market.
The share of counterfeit products increased to 11.3 percent, and the share of products labeled for duty-free sales or export but sold illegally in Ukraine grew to 12.9 percent.
Measured over the entire year, illegal cigarettes accounted for 21.8 percent of the Ukrainian tobacco market.
The Ukrainian government missed out on an estimated UAH23.5 billion ($625.67 million) in tobacco tax revenues in 2023 due to illicit cigarette trade, according to calculations by Kantar.
December 21, 2023