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Category: Global Regulation

  • Philippine Tax Hikes Reduced Revenue, Fueled Illicits: Economist

    Philippine Tax Hikes Reduced Revenue, Fueled Illicits: Economist

    American economist Arthur Laffer said the Philippines may have reached the point where continued increases in tobacco excise taxes are reducing government revenue while accelerating illicit cigarette trade. Citing government data, Laffer said tobacco excise collections peaked at PHP176 billion ($2.8 billion) in 2021 before declining to PHP134 billion ($2.1 billion) in 2024 despite ongoing annual tax increases, arguing the trend reflects the “Laffer Curve” effect.

    He also referenced a University of Asia and the Pacific study estimating illicit cigarette trade cost the government PHP22 billion ($352 million) in lost tax revenue and contributed to broader economic losses. Laffer urged policymakers to adopt a data-driven approach that balances public health and fiscal objectives, including lower tax rates for smoke-free nicotine products to encourage adult smokers to switch while helping curb the illicit market.

  • Virginia AG to ‘Aggressively Enforce’ New Tobacco, Vape Laws

    Virginia AG to ‘Aggressively Enforce’ New Tobacco, Vape Laws

    Virginia Attorney General Jay Jones said his office is preparing to aggressively enforce the state’s new tobacco and vape law, which took effect July 1 and expands the attorney general’s authority to pursue businesses selling illegal products. The law requires retailers to obtain permits to sell tobacco and vaping products and authorizes the Virginia Alcoholic Beverage Control Authority to conduct regular inspections, including undercover compliance checks involving underage buyers and verification that only approved products are being sold.

    Jones said his office will target retailers violating the law while working with local governments, which are also adopting measures such as zoning restrictions on smoke shops.

  • Switzerland Backs Cantons in Disposable Vape Ban

    Switzerland Backs Cantons in Disposable Vape Ban

    Switzerland’s Federal Court upheld the canton (state) of Valais’ ban on the sale of disposable e-cigarettes, dismissing legal challenges brought by the Swiss Tobacco Trade Association, Philip Morris Switzerland, and other parties. The ruling confirms that the ban, which took effect in May 2025 after being approved by the canton’s parliament in 2024, is compatible with federal law and serves legitimate public health and environmental objectives.

    The court found that while the federal government has the authority to prohibit disposable e-cigarettes nationwide, individual cantons may enact their own restrictions until such action is taken at the national level.

  • Macau Moves Toward Tighter Nicotine Controls

    Macau Moves Toward Tighter Nicotine Controls

    Macau’s Legislative Assembly’s Third Standing Committee completed its review of amendments to the city’s tobacco law and endorsed the government’s proposals ahead of a final legislative vote, moving it closer to adopting stricter tobacco controls. The bill would expand smoke-free zones to within 10 meters of hospitals, health centers, and schools; prohibit the possession or use of e-cigarettes in smoke-free and certain public outdoor areas; and ban the manufacture, sale, import, and export of nicotine pouches, herbal cigarettes, and hookahs. It also raises fines for illegally transporting these products across Macau’s borders from MOP4,000 to MOP10,000 ($480 to $1,200), while requiring cigar packaging to carry health warnings covering 70% of both sides.

    If approved, most provisions would take effect on Jan. 1, 2027, with standardized tobacco packaging and expanded warning labels phased in beginning July 1, 2028.

  • Dutch Authorities Trying to Break ‘Fixed Revenue Model’ of Illicit Cigs

    Dutch Authorities Trying to Break ‘Fixed Revenue Model’ of Illicit Cigs

    Dutch Customs announced that it seized 106 million illicit cigarettes during the first half of 2026 as authorities intensified efforts against what officials describe as an increasingly important revenue source for organized crime. The majority of the illegal cigarettes were intercepted in sea containers, prompting Customs to expand its joint enforcement unit with the Fiscal Information and Investigation Service (FIOD) and deploy new detection algorithms at Schiphol Airport to identify travelers carrying excess tobacco products.

    Customs Director-General Nanette van Schelve said tobacco smuggling has become a “fixed revenue model” for criminal networks alongside cannabis, with the Netherlands’ high tobacco excise taxes continuing to make the illicit trade attractive.

  • Authorities Seize $7M in Illegal Tobacco, Vapes in Tasmania

    Authorities Seize $7M in Illegal Tobacco, Vapes in Tasmania

    Tasmanian authorities seized nearly A$10 million ($7 million) worth of illicit tobacco and vaping products during the 2025-26 financial year, including 5.43 million cigarettes, 2,535 kilograms of loose tobacco, and nearly 30,000 illegal vapes, following intensified enforcement efforts and closer cooperation between the Department of Health and Tasmania Police. The seizures come as the state implements tougher laws targeting illicit tobacco and vape sales, including higher penalties, new business closure powers, and restrictions on vending machine sales. At the same time, Tasmanian officials are urging Australia’s federal government to reduce tobacco excise taxes, arguing that high cigarette prices are fueling black market growth, reducing excise revenue, and strengthening organized crime despite continued declines in smoking rates.

  • Oregon Court Clears Path for Flavored Tobacco Ban

    Oregon Court Clears Path for Flavored Tobacco Ban

    The Oregon Supreme Court declined to review a lower court ruling upholding Multnomah County’s ban on flavored tobacco and nicotine products, effectively clearing the final legal hurdle for the ordinance to take effect after nearly four years of litigation. The decision follows a similar ruling involving Washington County, meaning flavored tobacco restrictions will soon cover roughly one-third of Oregon’s population.

    For the tobacco and vaping industry, the ruling marks a significant legal setback after challenges brought by the 21+ Tobacco and Vapor Retail Association of Oregon and vape retailers failed to overturn the measure. Industry representatives argued the ban will drive consumers to the illicit market rather than reduce youth access, while supporters contend flavored products are a key driver of youth tobacco initiation and view the court’s decision as a major victory for public health policy.

  • Philippine Authorities Pushing for Tougher Penalties in Illicit Tobacco Fight

    Philippine Authorities Pushing for Tougher Penalties in Illicit Tobacco Fight

    Philippine lawmakers and prosecutors are calling for stronger prosecution efforts to combat the country’s growing illicit tobacco trade, arguing that product seizures alone have failed to deter organized criminal networks. Speaking at the Third International Tobacco Summit, House Public Order and Safety Committee Chair Rolando Valeriano urged law enforcement to prioritize securing convictions, while noting that illicit trade remains highly profitable if offenders are not held accountable. The push comes as a recent EU-ASEAN Business Council and Euromonitor International study estimated the Philippines lost about ₱141 billion ($2.3 billion) in tax revenue over the past two years due to illicit tobacco products, with illegal products accounting for roughly one-quarter of cigarette sales and more than 80% of vape sales.

    Officials also highlighted proposals for an Anti-Illicit Trade law that would strengthen prosecutions, improve interagency coordination, and introduce track-and-trace technology, while prosecutors acknowledged that many existing cases require additional evidence before they can proceed to trial.

  • Philippines Seizes $48M in Illegal Cigarettes

    Philippines Seizes $48M in Illegal Cigarettes

    Philippine authorities are preparing to destroy more than ₱3 billion ($48 million) worth of smuggled cigarettes after seizing 59 container vans of the Modern Gia brand in coordinated operations across Cebu and Manila. The Bureau of Customs and the National Bureau of Investigation said the shipment, believed to have originated in China, is one of the country’s largest cigarette smuggling busts this year and announced plans to file multiple criminal charges against those involved, including financiers and organizers, under customs, tax, anti-economic sabotage, and potential intellectual property laws.

    Officials said the cigarettes will be shredded rather than auctioned to prevent them from re-entering the market, while investigations continue into the shipment’s origins, associated companies, and any public officials who may have facilitated the operation.

  • Serbia Pulls Nearly 25K Vapes from Market

    Serbia Pulls Nearly 25K Vapes from Market

    Serbia’s Ministry of Agriculture ordered the withdrawal of 24,852 flavored electronic cigarettes from the market, valued at approximately 24 million dinars ($230,000), after an extraordinary inspection found the products failed to comply with the country’s Tobacco Law. The Agricultural Inspection banned further distribution of the identified products until the regulatory violations are corrected, stating the action is intended to ensure consistent enforcement of tobacco regulations, protect consumers, and maintain fair competition among businesses. Authorities said inspections of tobacco and related products will continue to intensify, with additional enforcement measures to be taken whenever non-compliant products are identified.