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Category: Global Regulation

  • Mexico Proposes 200% Tobacco Tax Hike in Sweeping Health Push

    Mexico Proposes 200% Tobacco Tax Hike in Sweeping Health Push

    Today (September 11), Mexico’s Secretariat of Finance and Public Credit proposed steep new levies on products considered to be unhealthy as part of a broad “healthy tax” initiative aimed at curbing harmful consumption and boosting revenue. The plan would raise the Special Tax on Production and Services (IEPS) on junk food, processed food, and fast food. It would also gradually increase tobacco taxes “by 200% through the year 2030,” alongside new per-cigarette quotas, VAT, and higher duties on hand-rolled cigars. The proposal also introduces taxes on nicotine pouches and e-cigarettes, tied to nicotine content.

    Mexico is also considering increasing the taxes on online gambling, and taxing digital services and video games with violent content. Officials say the measures could generate 140 billion pesos ($757 million) annually while advancing President Claudia Sheinbaum’s goal of promoting healthier lifestyles.

  • Midwest Goods Responds to FDA Seizure, Says Actions are ‘Troubling’

    Midwest Goods Responds to FDA Seizure, Says Actions are ‘Troubling’

    Following yesterday’s (September 10) news that federal officials seized $86.5 million worth of illicit vapes in Chicago, Midwest Goods confirmed that agents from the Food and Drug Administration (FDA) and U.S. Marshals executed a civil seizure warrant at its facilities, targeting more than 75 brands of bottled e-liquids used in refillable vaping devices. The company said it is fully cooperating with authorities.

    In a statement, Midwest emphasized that the products cited in the warrant are manufactured in the U.S. by companies employing “hundreds, if not thousands,” of American workers. Many of the e-liquids, the company said, are tied to premarket tobacco product applications (PMTAs) that have been pending with the FDA since as far back as September 2020, despite a statutory requirement for review within 180 days. Midwest noted that the FDA has previously allowed these products to remain on the market during the prolonged review process.

    “Midwest has always attempted to work cooperatively with FDA,” the company said in its statement. “After a recent FDA inspection in August, we advised FDA that we had removed from our product catalog and inventory several ENDS products about which FDA inspectors had inquired. We also offered to remove other ENDS products from our product catalog if FDA was concerned about our continuing to offer them for sale. FDA acknowledged receipt of our correspondence, but did not request that we stop selling any other products.”

    The company called the enforcement action “troubling,” particularly in light of reports that FDA is preparing to expedite reviews of products tied to larger companies with more recent applications, while seizing long-pending independent products. It pledged to continue cooperating with federal authorities while reserving the right to challenge the seizure in court.

    Read the full statement here.

  • NSW’s New Laws Aimed at Curbing Illegal Tobacco Trade

    NSW’s New Laws Aimed at Curbing Illegal Tobacco Trade

    The New South Wales (NSW) Parliament passed sweeping new laws to crack down on the illegal tobacco trade, with offenders now facing some of the harshest penalties in Australia. Under the legislation, those convicted of selling illicit tobacco could face fines of up to A$1.5 million ($1 million), prison sentences of up to seven years, and the closure of their businesses. The measures will work alongside the state’s new tobacco licensing scheme, designed to make it easier to identify and remove rogue operators, and will be enforced by NSW Health’s newly established Centre for Regulation and Enforcement.

    The government said the reforms are aimed at protecting public health and safeguarding legitimate retailers, while disrupting the operations of criminal syndicates profiting from tax evasion, addiction, and youth exposure to tobacco.

  • Hong Kong Bill Bans Vapes, Heated Products, Flavored Cigarettes

    Hong Kong Bill Bans Vapes, Heated Products, Flavored Cigarettes

    Hong Kong’s Legislative Council approved sweeping new tobacco control measures aimed at further cutting smoking rates in the city. The Tobacco Control Legislation (Amendment) Bill 2025, passed today (September 11) with 74 votes in favor (versus one against and seven abstentions) bans possession of e-cigarettes and heated tobacco products, extends non-smoking areas, prohibits sales to minors, and outlaws flavored cigarettes except menthol.

    Lawmakers largely supported the bill, with several highlighting the need to shield young people from targeted marketing of flavored products. Hong Kong’s smoking rate currently stands at 9.1%, as officials hope to eventually bring it below 5%.

  • HHS and CBP Seize $86.5 Million in Illegal E-Cigarettes in Largest U.S. Operation

    HHS and CBP Seize $86.5 Million in Illegal E-Cigarettes in Largest U.S. Operation

    Today (September 10), the U.S. Department of Health and Human Services (HHS), announced the seizure of 4.7 million unauthorized e-cigarette units in Chicago with an estimated retail value of $86.5 million. Working with the FDA and U.S. Customs and Border Protection (CBP), HHS said it was the largest operation of its kind.

    The shipments, mostly originating from China, were found to contain misleading product descriptions and undervalued entries, apparently aimed at evading duties and FDA safety review.

    “We will never allow foreign actors to threaten the health of America’s children,” said HHS Secretary Robert F. Kennedy, Jr. “Today we took decisive action to protect kids from illegal vape products.”

    So far this year, the FDA and CBP have stopped more than 6 million unauthorized e-cigarettes valued at over $120 million. All seized products lacked the required pre-market authorization from the FDA. In addition, the FDA contacted 37 importers responsible for these shipments, reminding them of their legal obligations and requesting full compliance within 30 days.

    “The FDA and our federal partners are taking strong actions to shore up America’s borders and stop the flow of illegal vaping products into our country,” said FDA Commissioner Marty Makary. “If a product has not been authorized by the FDA, CBP will seize, detain or destroy it.”

  • Dutch Watchdog Puts Snapchat in Crosshairs for Online Vape Sales

    Dutch Watchdog Puts Snapchat in Crosshairs for Online Vape Sales

    The Dutch consumer watchdog ACM launched an investigation into Snapchat over the alleged large-scale illegal sale of vapes to minors following requests from anti-smoking group Stichting Rookpreventie and the national product safety authority NVWA. The probe will assess whether Snapchat has breached the EU’s Digital Services Act (DSA), which requires platforms to curb illegal content and protect users, particularly children.

    ACM official Manon Leijten said there was sufficient evidence to warrant the investigation, as many of the vapes advertised on the app are illegal in the Netherlands because they contain child-appealing flavorings. Parent company Snap Inc. said the sale of vapes is banned on Snapchat and that it has taken “reasonable, proportional and effective measures” to prevent such activity. If found in violation, Snapchat could face fines.

  • South Australia Punishes 95 Stores for Vape Violations

    South Australia Punishes 95 Stores for Vape Violations

    The Malinauskas Labor Government issued 95 closure orders to stores caught selling illicit tobacco and vapes in South Australia since June, as part of its recent crackdown. Health Minister Chris Picton said 43 stores face three-day closures, 50 stores face 28-day shutdowns, and two are facing long-term shutdowns. He said the government is considering 12-month closure orders for repeat offenders through the Magistrates Court.

    Since June, more than A$40 million ($26.4 million) worth of illicit products have been seized under the new regulations. South Australia has imposed the nation’s harshest penalties, with fines of up to A$6.6 million ($4.4 million) for large-scale offenders. The Australian Council on Smoking and Health recently awarded the state an A+ score for its enforcement efforts.

  • WHO Report Links Tobacco Use to Child Stunting

    WHO Report Links Tobacco Use to Child Stunting

    The World Health Organization (WHO) published a new report warning that tobacco use plays a significant role in child stunting, a condition that affects nearly 150 million children worldwide, particularly in Africa and Asia. Stunting increases the risk of disease, delayed development, and early death. The document, the 11th in WHO’s tobacco knowledge summary series, is aimed at health professionals, policymakers, and public health advocates.

    WHO said that maternal smoking during pregnancy is strongly linked to preterm birth, low birth weight, and restricted fetal growth, all major predictors of stunting by age 2. Children exposed to second-hand smoke are also at higher risk, it said, with evidence showing that the harm intensifies with the level of exposure. By contrast, quitting smoking during pregnancy improves growth outcomes, reducing the risk of stunting.

    The organization is urging governments to strengthen tobacco control policies in line with the WHO Framework Convention on Tobacco Control (FCTC) and MPOWER measures. WHO stressed that reducing tobacco exposure is critical to improving survival, growth, and development, and to achieving global health goals.

  • Spain Proposes Outdoor Smoking and Vape Ban

    Spain Proposes Outdoor Smoking and Vape Ban

    Today (September 9), Spain’s minority leftist government unveiled a bill that would ban smoking and vaping in outdoor spaces, including beaches, bar and restaurant terraces, bus stops, and stadiums, according to Reuters. Health Minister Monica García said the move puts “public health ahead of private interests,” stressing that everyone has the right to breathe clean air.

    The proposal, which mirrors recent restrictions in France but goes further by including e-cigarettes, still needs parliamentary approval. The hospitality sector has criticized the plan, noting that Spain’s outdoor terraces are central to its dining culture and widely used by smokers. Smoking indoors has been banned since 2011.

  • Employers, Union Push Back Against Indonesian Tobacco Tax Hike

    Employers, Union Push Back Against Indonesian Tobacco Tax Hike

    The Indonesian Employers Association (Apindo) and industry representatives warned the government against raising tobacco excise duties next year, citing risks to competitiveness, jobs, and supply chains in the country’s labor-intensive cigarette sector. Apindo chairwoman Shinta Kamdani said further hikes would add pressure on producers already hit by higher excise this year. “If a higher excise is implemented without considering the real conditions of the [tobacco] industry, risks of weakening competitiveness and eroding job opportunities will only grow,” she said.

    Tobacco manufacturers and unions echoed the concerns, noting that higher duties would further squeeze margins, reduce farmer tobacco purchases, and accelerate the shift toward untaxed illegal cigarettes, which already make up nearly half of consumption. With the sector employing millions and contributing heavily to state revenue, they urged the government to balance fiscal goals with economic stability.

    The warning comes as the government targets a 10% increase in state revenue in 2025 to Rp 2.86 quadrillion ($174.9 billion). Finance Minister Sri Mulyani Indrawati has set a 13.5% rise in tax collection as the benchmark, though she admitted the goal was “ambitious” amid weak revenue performance this year.