Category: Featured

Tobacco Rejects Pricier Tax Stamps

Photo: International Tax Stamp Association
The Philippine Tobacco Institute (PTI) has rejected a plan by the government-run printing office to raise the cost of cigarette tax stamps from PHP0.15 ($0.003) to PHP0.23, reports The Manila Standard.
APO Production Unit has been appointed by the Bureau of Internal Revenue (BIR) to produce the security tax stamps on cigarettes. The project was rolled out in September 2014 to monitor the supply and sale of tobacco products and guarantee payment of excise taxes by manufacturers.
In a letter to APO Chairman and President Michael Dalumpines, PTI President Rodolfo Salanga said that APO is not a revenue-generating government agency, and its “monopoly” of producing the tax stamps is for regulatory purposes and not to raise revenues.
“We believe that the eight centavos printing cost increase from the current 15 centavos per internal revenue stamp to the proposed 23 centavos is unconscionable and excessive.
We wish to emphasize that the intent for the internal revenue stamp is to ensure the collection of excise taxes,” said PTI, which represents Philippine cigarette manufacturers, exporters and leaf suppliers.
We believe that the eight centavos printing cost increase from the current 15 centavos per internal revenue stamp to the proposed 23 centavos is unconscionable and excessive.
Rodolfo Salanga , president, PTI
APO cited higher ink and paper costs as reason for the price hike. During meetings with stakeholders, the printing agency presented the cost of producing each tax stamp as PHP0.11.
PTI said it was amenable to a PHP0.02 increase per stamp on the current PHP0.15, which would still give APO a net profit from its production cost. The group said the last increase in 2018 was also PHP0.02 from the initial price of 13 centavos in 2014.
March 29, 2021
JTI Releases Collateral to Malawi Growers

Photo: Taco Tuinstra
Japan Tobacco International (JTI) Leaf Malawi has released MKW581 million ($739,381) of collateral to its contracted growers to assist them during the lean farming season and help them cope with the economic impact of the Covid-19 pandemic, reports Malawi24.
The growers paid the money to JTI at the beginning of the farming season as security to enter into contracts with the company.
JTI Leaf Malawi Corporate Affairs and Communications Director Limbani Kakhome said that this money is given back to the growers to help with their day-to-day livelihood needs as well as production costs.
He added that tobacco production is quite involving financially and therefore the company feels duty bound to help its growers meet production demands to come up with top quality tobacco.
“This is the more reason why for more than four years we have been undertaking this program. We give out the funds between January and February because around this time, there are just many activities that require money.
“Over the years, the quality index of tobacco produced by our growers when compared with quality from other countries has been growing steadily. This is attributed not only to the quality of extension services we provide to growers but also to other programs like this,” he explained.
A total of 8,000 growers have received money through the initiative.
Tobacco Reporter covered the Malawi market in-depth in its June 2017 issue. (See “On the Map.”)
March 29, 2021
BATSA opens first VUSE Inspiration store

Photo: BAT
British American Tobacco South Africa (BATSA) has opened the first VUSE Inspiration store in South Africa in the Canal Walk shopping center in Cape Town.
VUSE Inspiration stores will be opened at 67 existing sites throughout South Africa.
“To date, we have made an extensive investment in bringing Twisp into BATSA’s portfolio, and we plan to invest further in our tobacco harm reduction strategy in South Africa,” said BATSA General Manager Johnny Moloto in a statement. “We will be expanding our number of kiosks, investing in bringing our new products to market and enhancing the skills of our BAT team.”
Another 15 new sites in key locations will be added to the VUSE network by December as part of a significant expenditure project.
“The opening of our first flagship VUSE Inspiration store in South Africa is an important milestone in delivering on our harm reduction strategy and our investment in science and innovation to demonstrate the potential of our extended portfolio of products,” said Moloto.
March 29, 2021
PMI Nominates New Board Members

Photo: PMI
Philip Morris International’s (PMI) board of directors has nominated two new members, Juan José Daboub and Shlomo Yanai. Additionally, Jacek Olczak has been nominated to the board following the announcement of his appointment as CEO, a role he will assume immediately following the annual shareholders meeting on May 5.
Daboub started his career as an engineer before moving into government. In 1999, he was the youngest senior cabinet member in El Salvador, serving first as chief of staff to the president and then as minister of finance. Later, as a managing director at the World Bank Group, he was credited with having driven several corporate initiatives and reforms, including leading the institution’s global agenda on governance and anti-corruption.
Over the past decade, Daboub has focused on climate adaptation and energy transition through public and private investment vehicles and not-for-profit organizations, including as chair of the Council on Climate Change at the World Economic Forum and founding CEO of the Global Adaptation Institute. He is currently president of The Daboub Partnership and of ThinkHUGE USA-Central America Job Creation Council.

José’s experience across multiple business sectors, combined with his deep understanding of geopolitics and international institutions, will be a great addition to the PMI board.
Lucio Noto, interim chairman, PMI
“Juan José fully embraces PMI’s commitment to delivering a smoke-free future,” said Lucio Noto, PMI’s interim chairman, in a statement. “José’s experience across multiple business sectors, combined with his deep understanding of geopolitics and international institutions, will be a great addition to the PMI board.”
Yanai was president and CEO of Teva Pharmaceutical Industries from 2007 to 2012. In that time, he led the company’s international expansion and increased annual revenues by nearly $10 billion. Prior to that, Yanai was president and CEO of ADAMA for three years. His time at those organizations and later as a board member or chair of several other companies in the pharma space, as well as his current position as chairman of the board of Lumenis, a medical devices company, have given Yanai a solid understanding of the science behind drug discovery, development and regulation. He served in the Israeli Defense Forces for more than 30 years, reaching the rank of major general. In his military career, Yanai worked extensively with politicians and public sector bodies.
“The combination of Shlomo’s broad board experience and his knowledge of the pharma industry and its regulatory processes will bring to the board an extremely relevant set of skills as PMI continues to develop and commercialize scientifically validated smoke-free products and starts deploying its beyond nicotine strategy,” said Noto.
The nominations announced today follow the appointments of Michel Combes and Bonin Bough to the board of directors in December 2020 and February 2021, respectively. Combes is president of SoftBank Group International and oversees several SoftBank portfolio companies. He was chief financial officer and then CEO and a member of the board of directors of Sprint, CEO of Vodafone Europe, CEO of Alcatel-Lucent, CEO and chief operating officer of Altice, and chairman and CEO of SFR Group.
March 26, 2021
Fourth-Generation Atomizers Not Harmless

Photo: Tobacco Reporter archive
Fourth-generation electronic cigarette pod atomizers are similar in design to those of previous generations and contain elements that may adversely affect health and accumulate in the environment, according to a new study by the University of California (UC), Riverside.
According to the researchers, chronic exposure to the elements/metals in atomizers could adversely affect human health. Further, e-cigarette pod products, which eventually enter the environment, could contribute to chemical pollution in water and soil.
“The more these devices aesthetically evolve, the more the atomizer components and elemental composition stay the same,” said Esther Omaiye, a graduate student in the Department of Molecular, Cell and Systems Biology at UC Riverside and the first author of the research paper that appeared in PLOS ONE, in a statement.
“While major components such as filaments, thick wires, filament-wire joints, air tubes and wicks have been preserved across generations, we see newer components in fourth-generation pod products, such as connector pins, connector-wire joints, ceramic wicks and chambers that house these wicks.”
The more these devices aesthetically evolve, the more the atomizer components and elemental composition stay the same.
Esther Omaiye, UC Riverside
“We set out to characterize the design features of pod-style atomizers and analyze the elemental composition of the atomizers,” said Prue Talbot, a professor of cell biology at UC Riverside, who led the research team. “These elements may, upon heating, enter the aerosol and be inhaled by users.”
The external appearance, design, battery power, atomizers and nicotine delivery of e-cigarettes have evolved over the last decade. Fourth-generation pods have low-powered batteries, an e-liquid reservoir and an atomizer/mouthpiece. According to the researchers, they contain high concentrations of nicotine and acid.
Scientists have only limited understanding of what exactly makes up pod atomizers, which are required components for aerosol production in e-cigarettes.
“Since elements in the atomizers can leach into the e-fluids or transfer to the aerosols when the e-fluids are heated, it is important to know what these elements are that users can get exposed to,” said Omaiye, who works in Talbot’s lab.
The researchers examined 11 fourth-generation pods from six brands/manufacturers. Of 23 elements they identified in the pod atomizers, 11—nickel, chromium, iron, gold, copper, zinc, tin, oxygen, silicon, carbon and sodium—were present in relatively high abundance. Some of these elements have been linked to human illnesses, including cardiovascular diseases, immune system suppression, lung injury, cancer, renal damage, neurotoxicity and silicosis. Nickel, chromium, iron and gold were found to be the most abundant elements in fourth-generation atomizers.
“We now know what elements users may be inhaling by using fourth-generation products,” Omaiye said. “Our work reinforces the idea that e-cigarettes are not without harm. Our next line of research is evaluating fluids and aerosols generated from fourth-generation products to get a clearer picture of how their elements may be directly affecting e-cigarette users’ health.”
March 26, 2021
BAT Ranked Third in ESG Index

Photo: BAT
British American Tobacco (BAT) has been rated as the third-highest environmental, social and governance (ESG) company in the FTSE-100 index, which consists of the 100 largest publicly traded companies in the United Kingdom. The designation for BAT was made by Refinitiv, a global provider of financial market data and a subsidiary of the London Stock Exchange Group.
BAT achieved an ESG score of 91 out of 100 and is the highest-rated business in the food and tobacco sector globally.

Winning more than 200 awards in 2020 was an exceptional recognition of our achievements and shows we are on track to build the sustainable enterprise of the future.
Guy Meldrum, CEO and president, Reynolds American Inc.
“Winning more than 200 awards in 2020 was an exceptional recognition of our achievements and shows we are on track to build the sustainable enterprise of the future,” said Guy Meldrum, CEO and president of BAT subsidiary Reynolds American Inc., in a statement. “We’re delighted to be part of the ranking as one of the FTSE-100 top three ESG performers as continued proof of this. In 2020, we committed to ambitious new ESG targets to deliver ‘A Better Tomorrow’ for consumers, society and for our investors, and we’re well on our way to achieve them.”
In March 2021, BAT published its annual ESG report demonstrating the global organization’s progress against its targets, including: increasing consumers of noncombustible products by 3 million to 13.5 million at year end 2020; increasing New Categories revenue by 15 percent in 2020 versus 2019; increasing renewable energy to more than 26 percent in 2020—a 10 percent increase from 2019, coupled with a greater than 30 percent reduction in overall carbon emissions since 2019; reducing water withdrawn by nearly 11 percent since 2019; holding more than 38,000 human rights training sessions, with more than 390,000 attendances across its supply chain; and reaching 38 percent of female representation in management roles.
March 25, 2021
FDA Urged to Remove Flavors from Market

Photo: Bacho12345 | Dreamstime.com
Lawmakers in the U.S. House of Representatives have sent a letter to the head of the U.S. Food and Drug Administration (FDA) urging the agency to remove all flavored vaping products from the market. The 43 House Democrats sent the letter to acting FDA Commissioner Janet Woodcock as the agency continues to review thousands of premarket tobacco product applications (PMTAs).
“Flavored e-cigarettes are putting a new generation of kids at risk of nicotine addiction and the serious health harms that result from tobacco use,” states the letter drafted by Representatives Debbie Wasserman Schultz and Diana DeGette, according to The Hill.
The lawmakers want the FDA to ban all flavored e-cigarettes upon further review and eliminate the exemption the FDA has for menthol and disposable products.
Along with a ban on flavored e-cigarettes, lawmakers want a ban on PMTAs and the marketing of e-cigarettes that target minors. “Today, e-cigarette use by youth remains at what FDA calls ‘epidemic proportions,’ and e-cigarettes have been the most commonly used tobacco products among youth since 2014—and flavors are a key reason why,” the letter states.
The FDA has already put a ban on fruity e-cigarettes. However, brands such as Puff Bar are sidestepping the ban by selling fruit-flavored disposable vaporizers that use synthetic (tobacco-free) nicotine. “We strongly recommend that FDA’s premarket review process require manufacturers to provide convincing evidence that their products do not increase youth use of nicotine and tobacco in ways that increase the risk of abuse and addiction among youth,” the lawmakers stated.
March 25, 2021
‘Hungary Tobacco Tax Too Low’

Photo: hince from Pixabay
Hungary has failed to comply with European Union regulations by keeping the excise tax on tobacco products below the required threshold, reports Hungary Today, citing the Court of Justice of the European Union (CJEU).
In October 2019, the European Commission (EC) complained to the CJEU that Hungary had failed to gradually raise the excise tax on tobacco products to the required threshold by the deadline of Dec. 31, 2017.
Under EU guidelines, the excise tax on tobacco products must reach 60 percent of the average retail price but at least €90 ($105.88) per 1,000 cigarettes. The 60 percent ratio does not apply to prices above €115 per 1,000 cigarettes.
The EC said Hungary had failed to reach that threshold in 2017 or in subsequent years until the suit was brought, distorting competition within the bloc and violating EU health protection regulations
March 25, 2021
Intertabac Exhibition Postponed Again

Photo: Westfalenhallen Unternehmensgruppe
The Intertabac and Intersupply 2021 trade shows will not take place due to the ongoing coronavirus pandemic. Billed as the world’s largest tobacco trade show, the event was scheduled to take place Sept. 16–18, 2021, in Dortmund, Germany. Westfalenhallen Unternehmensgruppe, the owner of the Intertabac show, announced today that the event is cancelled after talking with exhibitors and sponsors.

Working closely with the industry associations and partner associations, the conceptual sponsors, the advisory board and the exhibitors of the twin fairs, it has become clear that the vast majority is against holding the events this September.
Sabine Loos, managing director, Westfalenhallen Unternehmensgruppe
“Working closely with the industry associations and partner associations, the conceptual sponsors, the advisory board and the exhibitors of the twin fairs, it has become clear that the vast majority is against holding the events this September as previously announced,” said Sabine Loos, managing director for Westfalenhallen Unternehmensgruppe, in a statement.
Intertabac showcases nearly every product that is associated with consuming nicotine, from vaping products and combustible cigarettes to machine-made and premium cigars, pipes, shisha, smokeless and other tobacco-related products. In 2019, 13,800 people attended the event, which had more than 500 exhibitors from 47 countries, according to Intertabac.
Last year’s event was also cancelled. Intertabac 2022 is scheduled for Sept. 15–17, 2022, according to Westfalenhallen Unternehmensgruppe .
March 25, 2021
Philippines Urged to Adopt Virtual Stamps

Photo: Gerd Altmann from Pixabay
A senior legislator in the Philippines wants the Bureau of Internal Revenue (BIR) to create “virtual stamps” for export cigarettes to deter their smuggling into the domestic market, reports Business World.
At a hearing conducted by the House Committee on Ways and Means on March 22, Representative Jose Ma. Clemente S. Salceda proposed a “less visible” form of security labelling along with material labelling features.
Salceda also reiterated his call for the BIR to revoke a rule that exempts cigarettes sold for export from tax stamp affixture, adding that unstamped export cigarettes were a key source of supply for smugglers. Cigarettes for domestic sale affixed with tax stamps indicate that the manufacturer has paid the required excise taxes.
The House tax panel has found that tobacco smugglers evade excise taxes by declaring tobacco products “for export.”
BIR Deputy Commissioner Arnel SD. Guballa said while the agency supports stamps on export cigarettes, manufacturers expressed concerns that this could deter foreign markets since most other countries prefer the products to be shipped without stamps.
“The international market demand is for cigarettes to have no stamps,” he said.
The government loses PHP30 billion annually due to untaxed tobacco products on the domestic market. In February, the Philippines’ Bureau of Customs declared an “all-out war” against cigarette smuggling.
March 25, 2021