Illegal cigarette consumption in Cyprus reached 11 percent of the total market in 2023, reports Philenews, citing a KPMG report commissioned by Philip Morris International.
Despite a slight decrease in the percentage of illegal cigarette consumption since the previous report, the government still missed out on €18 million ($19.49 million) in tax receipts due to illicit tobacco trade in 2023.
Cypriots smoked an estimated 100 million illegal cigarettes during 2023, most of which were believed to originate from the northern part of the island, where the Republic of Cyprus does not exercise control.
Outflows of illicit cigarettes from Cyprus rose by 3 percent compared to 2022, with increased outflows to smaller markets.
This increase was partially offset by reduced outflows to the United Kingdom, although it remains the primary destination for illegal cigarette outflows from Cyprus in 2023.
At the EU level, smokers consumed more than 35 billion illegal cigarettes in 2023, accounting for 8.3 percent of the trading bloc’s consumption.
Illegal cigarette consumption has been increasing for five consecutive years in Europe, reaching 52.2 billion cigarettes in the 38 countries included in the study.
EU governments lost an estimated €11.6 billion in tax revenue in 2023 compared to €11.3 billion in 2022.
The report notes that the increase in counterfeit cigarette consumption across Europe, primarily driven by the U.K. and Ukraine, is now combined with growth in all other categories of illegal trade.
The recovery of legal cross-border quantities following the lifting of Covid-19 travel restrictions in 2022 has pushed overall nondomestic consumption in the 38 European countries studied to its highest recorded level (15.5 percent), equating to more than one in six cigarettes.
Nationwide raids in the Philippines uncovered illicit seller 408 sellers vape products, whose operations are unregistered or whose products do not carry the appropriate revenue stamps, reports Business World.
illicit retailers and resellers were found not only in metropolitan Manilla, but also in other places, including Ilocos Sur, Pangasinan and Benguet.
Beginning June 1, the BIR required all vape manufacturers and sellers to affix internal revenue stamps on their products to indicate tax compliance.
Republic Act 11900 instructs the Bureau of Internal Revenue (BIR) to order the immediate recall, ban or seizure from public sale or distribution of vaporized nicotine and non-nicotine products or novel tobacco products not registered with the BIR, including those sold online.
The BIR intends to conduct regulator raids on illegal vape sellers. “I have ordered weekly raids against illicit vape retailers, wherever they may be found,” said BIR Commissioner Romeo D. Lumagui Jr.
In the first half of the year, the BIR estimated foregone revenue of around PHP7.2 billion ($124.47 million) from seized vape and tobacco products.
Flonq introduces its solution to address the lack of ability to control nicotine consumption.
Contributed
A range of studies suggests that e-cigarettes can be an effective tool for helping conventional tobacco smokers quit. However, once individuals switch from tobacco smoking to e-cigarettes, there is no clear baseline for before and after comparison, since most users are unable to track how frequently they vape. Vape companies and manufacturers should propose solutions as part of their responsibilities. How can this be achieved? Alfabet Labs, the company behind the Flonq brand, offers its perspective on this issue.
One of the most recent studies on the effectiveness of electronic cigarettes as a smoking cessation tool was conducted by the Cochrane Database of Systematic Reviews. The report concluded that there is high-certainty evidence that nicotine e-cigarettes are more effective than other methods, such as nicotine-replacement therapy—like patches or gum.
However, the goal after switching to e-cigarettes is to control, decrease or quit nicotine consumption. This presents a challenge, as it’s hard to accurately measure e-cigarette use to control nicotine intake. The main issue is figuring how to measure usage intensity, given the wide range of products and user behaviors.
So what should be the basis for comparing the consumption dynamic after switching to e-cigarettes? Should industry professionals measure the number of times an e-cigarette is used per day, the number of puffs taken, or the volume of e-liquid consumed? A consensus on measurement standards has yet to be established.
Vaping vs. cigarettes
The Eurobarometer study, which revealed key trends in smoking behavior in the EU, clearly illustrates the issue of accurate vape measurement. According to the report, the average daily consumption of tobacco was slightly higher than 14 units.
The data also reveals insights into e-cigarette usage. Among smokers who use e-cigarettes, the range resulted to be the following: 60 percent reported using them less than 10 times per day, 28 percent less than 20 times and approximately 11 percent over 21 times. A similar pattern was observed among ex-smokers who used e-cigarettes.
However, what is particularly important is that nearly half of the respondents reported being unsure about their previous daily usage of e-cigarettes. This uncertainty among former smokers about their past usage highlights the need for more research in this area.
Measuring consumption
The Nicotine & Tobacco Research journal conducted a study asking young adults who vape to provide suggestions for improving the scientific measurement of vaping.
Participants reported that they don’t actively monitor the number of puffs they take during a vaping session or over the course of a day. One participant remarked, “I would never count how many [puffs] I take.”
Additionally, several respondents noted that it is challenging for them to estimate how many times they vape during the day. They also expressed uncertainty about the amount of nicotine they consume per session. One participant said: “I wish that I could measure how much I’m [vaping]. I have no idea how much nicotine I’m taking in … I’m probably taking in more than a pack [of cigarettes] a day.”
Another respondent added, “No one can count how many times or how many hits in an hour. It’s pretty subconscious.”
It’s clear that using vapes to quit smoking or manage nicotine dependence won’t be effective without devices that include features for monitoring consumption. Whether it tracks the number of puffs, daily usage or other patterns, the device should provide a comparison point for the user.
Practical solutions
The Flonq vaping brand recently introduced its solution to address the lack of controlling the nicotine consumption in the industry. The brand presented META by Flonq—an advanced pod system designed for tracking and managing nicotine use. The device features a wide range of features that respond to the market demand for consumption transparency.
The real-time tracking system
The device monitors data such as the number of puffs, usage time and nicotine index level, all displayed on a single touch screen. The device collects data throughout the entire period of vape usage.
META Smart AI assistant
The integrated AI assistant helps to analyze nicotine usage patterns. With built-in behavioral therapy techniques, META is designed to offer personalized guidance.
Nicotine index
A key highlight of the device is the nicotine index developed by Flonq, which measures estimated nicotine saturation and determines the optimal timing for the next puff. It updates in real time, allowing users to follow a suggested plan to reduce nicotine intake or quit smoking.
“Whether you want to vape, reduce your nicotine intake or move toward a smoke-free life, the choice is yours,” says Marlen Nazarov, Flonq’s founder and CEO. “Our company’s focus is to respect your decision to vape while encouraging mindful choices.”
Overall, it seems that META offers consumers a straightforward and user-friendly way to track their nicotine usage—something the market needs to implement right away. This can be achieved through smart technologies such as integration with mobile apps, Bluetooth connectivity and alerts to notify users of excessive consumption. As the industry evolves and expands, these efforts will be essential in helping users manage their nicotine intake, make positive changes to their health and, what’s also important—to improve the industry’s overall image.
The economic damage caused by tobacco far outweighs the revenue generated from taxes on tobacco products in Vietnam, reports VN Express.
According to statistics, the country spends about VND108 trillion ($4.28 billion), or nearly 1.5 percent of its gross domestic product, on tobacco-related healthcare every year. A study conducted by K Hospital revealed that 97 percent of lung cancer patients are tobacco users. Meanwhile, the World Health Organization reported that tobacco-related diseases account for around 104,300 deaths in Vietnam annually, including 19,000 deaths caused by secondhand smoking.
“Tobacco is placing a significant burden on both Vietnam’s economy and public health,” said Nguyen Thi Thu Huong from the Tobacco Control Fund under the Ministry of Health at a conference on Thursday.
She called for increased taxes on tobacco and the creation of more non-smoking spaces as key measures to combat the harmful effects of smoking. Vietnam currently taxes tobacco at 38.8 percent of the sale price, far below the 70 percent rate recommended by the WHO. The low tax rate makes tobacco easily accessible to young people and those with lower incomes, Huong added.
The WHO has been urging the country to implement a flat tobacco tax to reduce the number of smokers.
The Philippines will miss its PHP362.2 billion ($6.32. billion) excise tax collection goal this year due to declining demand for tobacco products, reports Business World. Tobacco excise accounts for more than 40 percent of the country’s excise tax take, according to Jethro Sabariaga, assistant commissioner of the Bureau of Internal Revenue (BIR).
Sabariaga noted that tobacco consumption has been steadily decreasing over the past decade “You don’t see a lot of people smoking cigarettes these days. Even visually, you can confirm the shift in market demand,” Sabariaga said, adding that the collection growth in other excisable articles will not be enough to offset the decline in tobacco excise.
The public’s shift to vape products has also been affecting the bureau’s excise tax take, according to Sabariaga. A single vape product is equal to one cigarette pack in excise taxes, but vape products often take longer to consume, he said.
“So, a cigarette smoker shifting to vape, who usually consumes 10 to 15 packs of cigarettes a month, will probably just buy one vape product for the month, or worse, one for two months,” Sabariaga was quoted as saying.
The BIR has also faced challenges in collecting excise taxes due to the stubborn illicit trade in tobacco products.
In the first half of 2024, the agency lost around PHP7.2 billion in potential revenue from seized tobacco and vape products.
Philip Morris International will hold several events in Austin, Texas, this weekend, to mark the upcoming introduction of its IQOS tobacco heating product in the United States.
In anticipation of launch, current nicotine users who are over the age of 21 and live in designated areas of Austin will be given the opportunity to join a wait list to be among the first to try IQOS once the product becomes available.
“We believe having a portfolio of satisfying alternatives can help traditional tobacco users switch completely and walk away from cigarettes for good,” said Stacey Kennedy, CEO of PMI in the U.S. operations “Austin is a hotbed for innovators, entrepreneurs and trailblazers. Cultural trends adopted here have a ripple effect, so it was a natural place to introduce IQOS in the U.S.”
Austin is a hotbed for innovators, entrepreneurs and trailblazers. Cultural trends adopted here have a ripple effect, so it was a natural place to introduce IQOS in the U.S.
The (re)introduction of tobacco-heating products into the U.S. has been eagerly awaited by investors and tobacco harm reduction advocates, who hope the product will help transition smokers from deadly combustible cigarettes to less-harmful heating products. Tests suggest that heating tobacco produces lower levels of harmful chemicals than burning it. IQOS has been authorized by the U.S. Food and Drug Administration as a modified-risk tobacco product.
IQOS was briefly test-marketed by PMI’s former U.S. partner, Altria Group. In September 2021, the International Trade Commission determined that the product infringed patents owned by British American Tobacco and barred IQOS imports.
IQOS is already available in about 80 countries, and since launching in Japan 10 years ago, it has helped more than 22 million people worldwide make the switch from cigarettes, according to PMI. A 2019 study by researchers at the American Cancer Society showed that cigarette sales decreased five times faster after IQOS was introduced in Japan.
IQOS is now PMI’s top revenue earner, surpassing the company’s bestselling Marlboro cigarette brand.
PMI’s latest integrated report shows that 38 percent of the company’s total net revenue now comes from its smoke-free business, which also includes the popular Zyn nicotine pouches .
“For the first time in history, smoke-free products have surpassed cigarette combustibles,” PMI CEO Jacek Olczak said at the Technovation event on Oct. 9 in Neuchâtel, Switzerland, according to Malaya Business Insight.
Canada’s three leading cigarette manufacturers will pay CAD32.5 billion ($23.6 billion) to settle a long-running lawsuit as part of a court-appointed mediator’s proposed plan, Philip Morris International announced on Oct. 18.
In 2015, a Quebec court award damages to some 100,000 smokers and ex-smokers who alleged the companies failed to warn consumers about the health risks of smoking, which they had known about since the 1950s.
The verdict was upheld in 2019, forcing the Canadian subsidiaries of PMI, BAT and Japan Tobacco International to seek bankruptcy protection.
The subsidiaries have been under a court-supervised mediation process negotiating a possible settlement since then.
The allocation of the aggregate settlement amount between the tobacco giants remains unresolved, according to Philip Morris.
“Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude, allowing RBH [Rothmans, Benson & Hedges] and its stakeholders to focus on the future,” said PMI CEO Jacek Olczak.
“Today marks an important step towards a potential settlement,” said Eric Gagnon, vice president, corporate and regulatory affairs for BAT’s Imperial Tobacco Canada subsidiary in a statement. “The plan resolves all Canadian tobacco litigation and provides a full and comprehensive release to Imperial, BAT and all related entities for all tobacco claims.”
The Lung Health Foundation (LHF), too, welcomed the prospect of a settlement. “This is a meaningful first step in acknowledging decades of harm,” noted LHF President and CEO Jessica Buckley in a statement. “But financial restitution can’t make up for the loss of life. It can’t make up for the experiences of Canadians who have suffered through lung cancer and COPD.”
Buckley called for the funds to be reinvested into vaping and smoking prevention and cessation support, mental health and addiction initiatives, and improved access to screening and care for conditions like lung cancer and COPD.”
Elfbar and Lost Mary have created a board in the U.K. to provide strategic advice for the brands.
Board members are from across relevant disciplines in the U.K. with senior-level experience, including in the national and local government, the medical profession and law enforcement.
The newly formed advisory board also serves Heaven Gifts, the company that manages Elfbar and Lost Mary.
“The creation of this advisory board marks a milestone in the global operations of Elfbar and Lost Mary. This aligns with our long-term commitment as the responsible market leader for the vaping sector worldwide, and our exploration of the smoking cessation role vaping products play,” said Heaven Gifts Global Vice-President Victor Xiao in a statement.
“This board further signals our intent to address concerns around, for example, youth vaping, the environmental impact, and illicit trade. Starting in the U.K., we are looking to bring this mechanism to more global markets, particularly those in Europe.”
Members of the advisory board include Steve Bennett, former director of investigations at the National Crime Agency; George Eustice, former member of parliament and secretary of state for the department of environment, food and rural affairs; Susie Kemp, former CEO of Swindon Borough council and deputy chief executive of Surrey county council; Lord Porter, former council leader and chair of the Local Government Association; Sairah Salim-Sartoni, a health psychologist with extensive experience in smoking cessation and tobacco harm reduction; and Lord Walney, a former member of parliament and special advisor to Prime Minister Gordon Brown and Business Secretary Lord Hutton.
More than 200 leading doctors, professional bodies and charities are urging the U.K. Chancellor to use the budget on Oct. 30 as an opportunity to invest in creating a smoke-free U..K as quickly as possible, and make the tobacco industry pay.
In an open letter published by The BMJ on Oct. 16, they warn that unless smoking is addressed, there is no prospect of delivering on Labour’s manifesto commitment to halve the gap in healthy life expectancy between the richest and poorest regions.
According to the authors, the rationale for investing to end the tobacco “epidemic” could not be stronger. The annual cost of smoking to individuals, public services and the wider UK economy is £93 billion ($121.43 billion), while the direct cost of smoking to the U.K. public finances in 2023 was £21.9 billion, with a net cost of £13.5 billion.
The letter writers acknowledge that there are acute constraints on spending, but point out that smoking cessation treatment saves £2.37 for every £1 invested, while improving health improves economic productivity.
What’s more, introducing a “polluter pays” levy on tobacco manufacturers “could raise £700 million a year for vital tobacco control activity in a way that would prevent companies from simply passing the cost on to consumers, according to the authors.”
“It is a scandal that smoking continues to have such a devastating impact on the nation’s health, being linked to 15,000 heart disease deaths in the U.K. each year. Besides the grief and pain each death causes countless families, ill health caused by smoking also puts a strain on the NHS and our economy,” said Charmaine Griffiths, CEO of the British Heart Foundation, in a statement.
“The status quo is unacceptable, and we need a bold and far-reaching package of measures to consign smoking to history.”
This week, the Coalition of Manufacturers of Smoking Alternatives (CMSA), a trade coalition that represents a diverse array of members who manufacture and distribute smoking harm reduction products, filed an amicus curiae brief before the Supreme Court of the United States supporting White Lion Investments, dba as Triton Distribution, in its case against the U.S. Food and Drug Administration.
In its brief, CMSA argues that FDA violated the Family Smoking Prevention and Tobacco Control Act (TCA) in its wholesale rejection of applications for flavored vaping products by applying a surprise and improperly adopted standard and foregoing the required notice-and-comment process. The brief emphasizes that the U.S. Congress specifically requires the FDA to undergo a transparent rulemaking process before imposing any restriction that amounts to a “tobacco product” standard.
“Importantly, this process tasks FDA with considering the broader public health effects of any such standard, ‘such as creating demand for and increasing the use of unregulated black-market products,’ or other harmful consequences,” the CMSA states. “In its efforts to unilaterally reject flavored vapor product applications based on a new and heightened standard, FDA unlawfully sidestepped this critical regulatory check and operated outside the bounds of its authority.”
The CMSA states that the FDA circumvented the very procedures Congress imposed to check the arbitrary or unreasonable exercise of such delegated power, and causes real harms as the FDA “misleads and whipsaws” manufacturers seeking to provide a robust set of options for consumers seeking to quit smoking,” the CMSA wrote in its brief. Further adding that “the long delays in FDA’s review of the many PMTAs (premarket tobacco product applications) it has received, coupled with the moving goal posts imposed via the review process, creates a level of uncertainty that severely deters investment and innovation in new products with harm-reduction potential.”
Earlier this week, 13 members of Congress, including U.S. Senator Roger Marshall and U.S. Representative Andy Harris, filed an amicus brief supporting the position of Triton Distribution and CMSA. In their brief, the members of Congress write, “There is a clear lack of authority for such a ban. Congress has specifically prohibited the FDA from banning products. Despite this, the FDA imposed a categorical prohibition.”
Also, the Global Action to End Smoking wrote in its amicus brief to SCOTUS that the FDA strayed from a “sensible, science-based harm-reduction approach, adopting an all-or-nothing stance that exalts outright cessation and all but ignores the harm-reduction strategy that Congress mandated…. [ignoring the] overwhelming scientific evidence that e-cigarettes containing flavor additives have an important role to play in moving adult smokers down the continuum of risk.”
SCOTUS announced Dec. 2, 2024 as the date for the U.S. Food and Drug Administration v. Wages and White Lion Investments, LLC, d/b/a Triton Distribution hearing.
