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Category: Global Regulation

  • Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns 

    Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns 

    A tobacco tax that’s helped drive Australian cigarette prices to world-leading highs won’t be lowered despite suggestions it has aided a rampant black market. Treasurer Jim Chalmers ruled out changing the tobacco excise Wednesday (June 4), dismissing New South Wales’ (NSW) Premier Chris Minns’ call that lower prices could help curb surging levels of illegal tobacco in the community.

    Federal excise taxes are A$1.40 (91 cents) per cigarette, driving the average cost of a pack of 20 to A$40 ($26). In the last six years, the excise taxes increased from A$16 to A$28 ($10.40 to $18.20) per pack, but the revenue collected by the government has still gone down as smokers turn to a flourishing black market, according to Minns. Tobacco tax revenue peaked at A$16.3 billion ($10.1 billion) in 2020 but has dipped to a projected A$7.4 billion ($4.8 billion) this year.

    Minns said police have better things to do than tobacco enforcement, and the “commonsense option” would be for the federal government to acknowledge the excise was not working. NSW Treasurer Daniel Mookhey insisted he would raise the issue with his federal counterpart despite the flat rejection.

    “We can’t ignore the fact there’s an interaction between the federal exercise and the emergence of illegal tobacco,” Mookhey said.

  • Malaysian Vapers: Ban is Not the Solution

    Malaysian Vapers: Ban is Not the Solution

    With Malaysian states working ahead of the federal government regarding tobacco control, the Malaysian Vapers Alliance (MVA) implored policymakers in state governments not to ban the sale of vape products and instead work together with the federal government to ensure they are properly regulated. Various proposals that would stop the issuance of business licenses to sell such products are being considered.

    “Banning the sale of vape products by stopping the issuance of business licences for local traders will only create negative consequences, especially when the federal government has already enacted laws to regulate vape products,” said Khairil Azizi Khairuddin, president of the MVA. “Consumers want access to regulated products. But this situation will cause negative consequences where consumers will be forced to seek products from alternative sources, including illegal channels. This will then create a situation where illegal vape products and the underground market will flourish.”

    MVA said the proposal to ban the sale of vape products by stopping the issuance of municipal council business licenses does not solve the issue at hand, which is the misuse and abuse of banned substances. MVA further added that access to products laced and infused with drugs are not sold in vape shops but instead are sold via online platforms, including social media channels.

    “Clearly, the ban on vape shops is not the right solution,” said Khairil. “Instead, the authorities need to work towards ensuring only regulated vape products are available for sale in vape shops, increase enforcement efforts against the sale of products laced and infused with drugs on those channels, and impose heavy penalties including mandatory jail terms for those involved.

  • Illinois Increases Taxes on Tobacco, Sports Books

    Illinois Increases Taxes on Tobacco, Sports Books

    Needing to raise an additional $500 million in revenue to balance its budget, Illinois legislators voted to increase taxes on tobacco, vapes, and sports gambling, and expand taxes on out-of-state income for businesses. The budget saw a 3.9% spending increase to $55.3 billion, with the Democratic majority receiving heavy criticism for providing next to no time for public review of the massive spending plan and other major bills, pushing through a previously unseen 3,000 pages of bills in the final 48 hours, according to ABC News.

    The state intends to raise tax rates on any “product that is made from or derived from tobacco,” including cigarettes, chewing tobacco, vaping products and nicotine gum, according to legislators. The tax rate will be raised from 36% of the wholesale price of the products to 45%, according to the legislation, but will not be applied to smoking cessation products, according to the text of the bill.

  • South Africa Working to “Combat Tobacco Use”

    South Africa Working to “Combat Tobacco Use”

    Through the proposed Tobacco Products and Electronic Delivery Systems Control Bill, South Africa is actively working “to combat tobacco use,” including e-cigarettes and hookahs, according to the Deputy Health Minister, Dr Joe Phaahla.  

    “We want to make sure we regulate these upcoming products because currently they’re not covered,” Phaahla said. “That is, e-cigarettes and the hubbly bubblies [hookahs]. We want to make sure they are properly regulated because currently they are everywhere.” 

    Phaahla said the proposed Bill seeks to implement significant changes to tobacco regulation, including the introduction of plain packaging, the expansion of smoke-free zones, stricter controls on emerging tobacco products, regulation of e-cigarettes, and enhanced support for tobacco cessation programs.

    The bill is expected to proceed to Parliament, with the government confident it will pass despite pushback from those pushing for harm reduction.

  • Global Experts Warn WHO’s Anti-Harm Reduction Stance Undermines Goals

    Global Experts Warn WHO’s Anti-Harm Reduction Stance Undermines Goals

    A panel of global tobacco harm reduction experts convened this week to criticize the World Health Organization (WHO) and the Framework Convention on Tobacco Control (FCTC) Secretariat for undermining the goals of World No Tobacco Day. The group expressed frustration over the WHO’s refusal to support harm-reduction tools, such as vaping and nicotine pouches, despite growing evidence of their effectiveness in helping smokers quit.

    “The WHO dismisses adult smokers and vapers, even though adults bear the vast majority of tobacco-related harm,” said Martin Cullip, International Fellow at the Taxpayers Protection Alliance. “It’s odd to see the organization celebrate bans on products that aren’t even made from tobacco.”

    Participants from Australia, South Africa, and the United Kingdom argued that the WHO’s prohibitionist approach is counterproductive, exacerbating smoking-related deaths and fueling black markets.

    “Australia has a massive black market and 66 people die daily from smoking-related disease,” said Pippa Starr, founder of A.L.I.V.E. (Australia, Let’s Improve Vaping Education). “These outcomes are tied to WHO-endorsed policies. Rather than reward failed approaches, the WHO should be focused on saving lives.”

    Panelists emphasized the contradiction in the WHO’s mission: while claiming to reduce tobacco deaths, it continues to oppose safer alternatives proven to help smokers quit.

    “WHO policies are scripted and disconnected,” said Kurt Yeo, co-founder of South Africa’s Vaping Saved My Life (VSML). “We need a full range of tools to achieve a smoke-free future. Prohibition has failed in countries like Mexico, India, and Singapore. The WHO isn’t facing the real issues.”

    The group urged the WHO and FCTC to embrace innovation, listen to consumers, and support harm reduction as a legitimate path to ending the global smoking epidemic.

    “Harm reduction works,” Reem Ibrahim, communications manager at the UK’s Institute of Economic Affairs, said. “These products help people quit. But the WHO’s strategy blocks access and ultimately harms public health.”

  • Spain Plans to Extend Smoking Bans

    Spain Plans to Extend Smoking Bans

    Today (May 29), Spain’s health minister announced plans to extend smoking bans to public spaces, including restaurant terraces and outdoor areas in bars. More than a year after the government passed its anti-smoking plan, Health Minister Monica García said “a concrete draft of the bill” had been completed. García said the prospective ban would also apply to electronic cigarettes and heated tobacco devices.

    School playgrounds, university campuses, company vehicles, as well as outdoor festive events and public transport shelters, are among the other places where the ban would be imposed.

    García said she hoped that the ban—which must still be reviewed by the government’s council of ministers, as well as the Spanish parliament’s lower house—would place Spain “at the forefront of the fight against smoking”.

    Spain joined other European countries that have considered introducing similar laws following a recommendation by the European Commission to extend smoking bans to further public areas and include electronic cigarettes.

  • NZ Reminds Vape Retailers No Grace Period for Impending Regulations

    NZ Reminds Vape Retailers No Grace Period for Impending Regulations

    Three weeks in advance of the second step, Health New Zealand and the Ministry of Health sent reminders to nicotine retailers warning them that the next step of significant enforcement changes will begin June 17, with no grace period, and with stronger penalties attached. The June changes include a complete ban on disposable vapes, visibility restrictions on vapes for retailers, and increased restrictions on advertising. They build on those established in December that centered around significant fine increases for sales to under-18s, and proximity restrictions relating to early childhood education centers.

    Director of Public Health Dr. Corina Grey says these changes bring vaping regulations more in line with restrictions on tobacco products. Retailers with stores will no longer be able to promote vaping products, and those online will no longer be able to display images of their products or link to sites with non-compliant pages, including links to sites outside of New Zealand.

  • Online Cigar Sales Back Out in Connecticut

    Online Cigar Sales Back Out in Connecticut

    Vapers and cigar smokers in Connecticut continue to watch with interest as House Bill 7275 is adjusted in committee before potentially being put in front of the state’s House of Representatives. Introduced last month, the bill would outlaw the online sale of e-cigarettes and other vaping products, and could potentially do the same for cigars.

    “As it was originally written, the bill would have outright banned the shipment of all cigars to consumers in Connecticut,” Charlie Minato wrote for Halfwheel. “Two weeks ago, the bill’s text was modified to include an exemption for premium cigar shipments, except few cigars will meet the current definition of ‘premium cigar.’ And yet, last week that exemption was removed.”

    The amended text was predictably straightforward in defining a “premium cigar” through five parts, however, the sixth part added that the cigar must sell for $30 wholesale, meaning typically $60 retail, which would exempt about only 1% of the cigars on the market.

    “None of that seems to matter now,” Minato said. “There’s no longer an exemption for cigar shipments, meaning if the bill were to pass, customers in Connecticut would no longer be able to order cigars from a retailer and have them shipped to addresses in Connecticut. It would apply to all shipments, regardless of where they originated in- or out-of-state.”

  • Fifteen EU Members Pushing for Excise Hikes on Tobacco

    Fifteen EU Members Pushing for Excise Hikes on Tobacco

    A majority of EU member states have called for the European Commission to press ahead with a long-delayed plan to tax vapes and raise minimum excise rates on cigarettes and cigars, according to Financial Times. The letter—signed by Austria, Belgium, Bulgaria, Czechia, Denmark, Estonia, Finland, France, Germany, Ireland, Latvia, The Netherlands, Slovakia, Slovenia, and Spain—called on the Commission to take “without delay the necessary steps” to update the directive.

    The Tobacco Excise Tax Directive (TED) was controversially left out of the Commission’s 2025 work program, though some states have been pushing for higher taxes on both tobacco and alternative products such as e-cigarettes, heated tobacco, and nicotine pouches. Unlike traditional tobacco, alternative products still lack an EU-wide excise framework. Euractiv reported last week that the EU commissioner in charge of taxation, Wopke Hoekstra, was testing the waters for such an initiative.

    “They want her to unblock the proposal, which is yet to be adopted by the commission and would, for the first time, set minimum taxation rates for vapes, nicotine pouches and heated tobacco,” Paola Tamma and Andy Bounds wrote for Financial Times. “It would also substantially raise minimum excise rates for cigarettes and cigars to harmonize taxation across the bloc and reduce tobacco fraud.”

    “The current scope and provisions of the directive are insufficient to enable member states to deal with the significant challenges posed by ongoing developments and trends in the European tobacco market, including the emergence of novel products,” the 15 EU finance and economy ministers wrote in the letter.

    Initially scheduled for 2022, the commission delayed the bill because of concerns about the impact that rising excise taxes could have at a time when inflation hit double digits across the bloc. Olaf, the European Anti-Fraud Office, estimates lost revenue from illicit tobacco to be more than €10 billion a year.

    The bill, however, requires unanimous approval. Twelve countries did not sign the letter, with Romania, Italy, and Greece among the most vocal opponents of revising the directive. A letter from the dissenting countries last month said they did not deem it necessary ‘‘to proceed…to a comprehensive revision of the overall EU legislation”. They also added that smoking rates are already falling. In a leaked version of the 2022 proposal, excise rates would have increased by 100% for cigarettes, 200% for rolling tobacco, and 900% for cigars and cigarillos.

    Paul Varakas, director of the European Cigar Manufacturers Association, said it was ‘‘out of touch and completely irresponsible in the context of an uncertain trade war.”

    An EU diplomat representing a southern state told Euractiv that high tobacco taxation in France and the Netherlands had resulted in black markets and increased cross-border shopping, with the diplomat accusing Paris and The Hague of pushing others to “repeat the same mistake”.

  • Poland’s Bill to Ban Sale of Vapes, Pouches to Minors Moves Forward  

    Poland’s Bill to Ban Sale of Vapes, Pouches to Minors Moves Forward  

    Poland’s lower house of parliament backed a comprehensive ban on the sale of vapes and nicotine pouches to minors, including both disposable and reusable e-cigarettes, irrespective of their nicotine content. In yesterday’s (May 21) session, 417 MPs voted in favor of the bill, with one against and 10 abstaining. It will now be presented to the Senate, the upper house, and if passed, to the president to be signed into law. 

    The bill will also restrict the use of non-nicotine e-cigarettes in public spaces, mirroring the regulations applied to traditional tobacco products and e-cigarettes with nicotine.

    While Poland already had laws banning the sale of cigarettes to minors, the legislation had no provision for alternative forms of nicotine intake.