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Category: Global Regulation

  • CAPHRA Calls for Risk-Proportionate Taxation on Nicotine Products  

    CAPHRA Calls for Risk-Proportionate Taxation on Nicotine Products  

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) released a position paper urging governments across the region to adopt risk-proportionate taxation for safer nicotine products. The paper warns that current tax regimes, often imported from Western models, are failing Asia Pacific’s unique needs and are undermining tobacco harm reduction. 

    “High taxes on safer nicotine products, set at the same level as cigarettes, simply protect the cigarette trade while punishing adults trying to make healthier choices,” said Nancy Loucas, Executive Coordinator of CAPHRA. “Public health policy must empower informed choices, not restrict them through fear and financial barriers.” 

    CAPHRA’s paper highlights that in many Asia Pacific countries, safer nicotine products are either banned or taxed at punitive rates, making them inaccessible for those who need them most. This approach, often driven by international pressure and revenue priorities, fuels black markets and undermines public trust. 

    CAPHRA said countries like Japan, the Philippines, and New Zealand, which have introduced risk-proportionate regulation and taxation, have seen marked declines in smoking rates, and thus calls on governments to follow this evidence, rather than impose one-size-fits-all policies that ignore local realities. 

    “As future health crises loom, prioritizing revenue over people’s well-being is short-sighted and dangerous,” said Loucas. “Governments must align tax policies with science, evidence, and the right to make informed health decisions.” 

    Click here to view the position paper.  

  • Thailand’s Tiered Tobacco Tax System Under Fire

    Thailand’s Tiered Tobacco Tax System Under Fire

    Dr. Roengrudee Patanavanich, an academic at Mahidol University’s Faculty of Medicine, said Thailand’s Excise Department is considering a new tax structure for cigarettes to replace the current system, which has been in effect for almost four years. At present, a two-tier system is applied to excise duties levied on cigarettes, which comprises a 25% tax on cigarette packs with a retail price of up to 72 baht ($2.16) to ease the burden on low-income earners, and 42% for packs priced higher than 72 baht. Packs are also subject to an additional tax of 1.25 baht (3.8 cents) per cigarette, regardless of the retail price.

    Academics say the tiered system has neither curbed illegal cigarettes, increased state revenue, nor prevented new smokers, and are calling on the government to restructure it to a single excise tax rate as recommended by the World Health Organization (WHO).

    Roengrudee said under the previous non-tiered system, government tax revenue increased from 13.6 billion ($408 million) in 1990 to 68.6 billion ($2 billion) in 2017 even as smoking rates declined 12%. She said revenue rates have dropped steadily since the tiered system was introduced in 2017, including a 15-year low of 51.24 billion ($1.5 billion) last year 

    “Since the two-tiered tax system was introduced in 2017, the smoking rate has not fallen, while the Finance Ministry has failed to achieve its goal of collecting 60 billion baht ($1.8 billion) in cigarette tax annually,” Roengrudee said. “The problem of illicit cigarettes also remains unsolved. The WHO presented an analysis of the cigarette tax between 2018 and 2019 to the Excise Department. The WHO suggested Thailand should adopt a single tax rate of 40% and impose an additional tax of 1.25 baht per cigarette.”

    Dr Prakit Vathesatogkit, executive secretary of the Action on Smoking and Health Foundation, spoke out against the Thailand’s Authority of Tobacco’s proposal to change to a three-tiered tax structure. He said that would be a retrograde step, as other countries are shifting to a single-tax rate in line with the WHO Framework Convention on Tobacco Control. With the proposed three-tiered structure, the price of cigarettes produced by the TAOT would fall, not different from the prices of illicit cigarettes that avoid taxes, Dr Prakit said, adding this will also lead to cheaper cigarettes being imported from foreign producers to compete with the TAOT’s cigarettes.

    “To tackle cigarette tax avoidance, the government must tighten controls on illicit cigarettes instead of reducing taxes or using multiple-tiered tax systems. Cheaper prices will prompt more people to smoke,” Prakit said.

  • Macao Considers Expanded Outdoor Smoking Bans

    Macao Considers Expanded Outdoor Smoking Bans

    The head of Macao China’s Health Bureau, Lo Iek Long, says the government is considering changing the smoking law in Macao to include more outdoor areas where smoking is prohibited, such as the entrances of kindergartens and schools. According to multiple local media reports, the authorities are also looking to establish smoke-free zones in large spaces such as public squares and streets, with smoking only allowed in designated areas.

    The possibility of tightening smoking regulations has been an ongoing discussion this year. In January, the prospect of banning smoking while walking was brought up. Last month, TDM (local television channel) interviewed tourists and locals, who agreed that such behavior was antisocial and expressed concern for health hazards.

    Officials have deferred taking further action however, saying that the issue was complex. While acknowledging that it had also received many complaints and concerns about pedestrians smoking, the Macau United Citizens Association acknowledged that enforcing bans would be difficult.

    The Health Bureau said half of 2024’s smoking violations were committed by tourists, most coming from mainland China.

  • Study: 60% Tax Hike Would Lower Smoking, Raise Revenue in Uruguay 

    Study: 60% Tax Hike Would Lower Smoking, Raise Revenue in Uruguay 

    In Montevideo, Uruguay, a Universidad de la República (Udelaar) study projected that a 60% increase in cigarette taxes from 2025 to 2028 would reduce smoking by 19% (49,000 people) and yet increase tax revenue by 24%. The research, led by Patricia Triunfo and Zuleika Ferre, analyzed data from 1997 to 2022, confirming that Uruguay’s anti-smoking policies since 2010 have significantly lowered consumption.

    The study highlights a price elasticity of -0.47, indicating tax hikes effectively reduce demand. Smoking accounts for 15% of adult deaths in Uruguay, 16.7% of health expenditure, and 50% of smokers die prematurely.

     “Evaluating public policies is a challenge because of how they are implemented, sometimes in simultaneous layers,” said Triunfo. “The big drama is to demonstrate causality between policies and reduction of smoking.”

    The study used aggregate data on legal cigarette sales, combined with variables such as prices, income, and regulations. Their work included collaborations with Jeffrey Harris of the Massachusetts Institute of Technology (MIT) and funding from the Bloomberg Foundation.

  • Maldives Requiring Tobacco Sellers to Check IDs

    Maldives Requiring Tobacco Sellers to Check IDs

    Last year, Maldives passed laws that raised the age to purchase tobacco from 18 to 21, set a generational ban so that no one born after January 1, 2007, could ever buy tobacco products, and banned the import of vape products. This week, Kinbidhoo MP Ali Ashrag proposed an amendment requiring tobacco sellers to request official government identification if there is any doubt about a buyer’s age, placing extra responsibility and potential punishments on the vendor.

    The new amendment is part of the government’s plan to establish a tobacco-free generation.

    “This is a matter of national urgency, especially for a small population like Maldives,” President Dr Mohamed Muizzu said. “Those born since January 1, 2007, make up 30.1% of the current population of 411,741.”

  • FCTC Deserves Criticism, Not Celebration, Says TPA

    FCTC Deserves Criticism, Not Celebration, Says TPA

    As the World Health Organization (WHO) marks the 20th anniversary of its Framework Convention on Tobacco Control (FCTC), a panel hosted by the Taxpayers Protection Alliance (TPA) used the occasion to reflect on what they called decades of stagnation, missed opportunities, and dangerous resistance to innovation in the field of tobacco harm reduction.

    “The FCTC should have marked a turning point in global tobacco control,” said Clive Bates, former director of Action on Smoking and Health (UK). “Instead, the WHO remains entrenched in outdated, prohibition-style thinking. They actively oppose safer alternatives like vaping, heated tobacco products, and nicotine pouches—tools that are demonstrably helping people quit smoking.”

    Panelists argued that the WHO’s refusal to embrace harm-reduction approaches is not just short-sighted but scientifically indefensible. Many urged countries participating in the treaty to reconsider their blind alignment with WHO policy and instead focus on pragmatic, evidence-based strategies that prioritize public health outcomes.

    “Whether it’s COVID-19 or tobacco policy, the WHO has failed repeatedly,” Roger Bate, a global health policy expert at the International Center for Law and Economics said. “We need fundamental reform. If the organization cannot evolve to incorporate modern science and real-world solutions, then it risks becoming obsolete.”

    David Williams, president of TPA, echoed this sentiment, calling the WHO’s current approach “dangerous and irresponsible.” He cited the organization’s refusal to recognize smoke-free alternatives, even as mounting research shows their effectiveness in reducing harm. “E-cigarettes and nicotine pouches are saving lives,” Williams said. “These are tools funded by taxpayers, yet the WHO continues to reject them without sound justification. That’s not just bad policy—it’s negligence.”

    Williams also promoted TPA’s global campaign, Good COP/Bad COP, which launched during the 2024 FCTC COP10 meeting in Panama. A follow-up event is planned for 2025 in Geneva, aimed at holding the WHO accountable. “We’re building a coalition of doctors, consumers, and advocates who want the WHO to work for the people, not against them,” he said.

    Martin Cullip, international fellow at TPA’s Consumer Center, summed up the panel’s frustration. “The FCTC was a good idea that has gone terribly wrong. We’ve lost 20 years of potential progress because of rigid ideology.”

    The panel urged WHO leaders to abandon a dogmatic stance and embrace harm reduction as a key component of tobacco control moving forward. As Clive Bates concluded, “The WHO has become unethical, unaccountable, and ineffective. If they truly care about saving lives, they must stop ignoring the science. Harm reduction has to be part of the solution.”

  • Hong Kong to Ban Vapes, Crack Down on All Tobacco 

    Hong Kong to Ban Vapes, Crack Down on All Tobacco 

    Hong Kong is seeking to ban the possession of e-cigarettes and other alternative smoking products in public by the end of April next year, along with other proposed measures to curb smoking in the city. Authorities are proposing to raise the fixed fine for smoking violations from HK$1,500 to HK$3,000 ($195 to $390). The statutory no-smoking areas would also be expanded. These measures were published in the Tobacco Control Legislation (Amendment) Bill 2025 last week.

    The bill, scheduled to be tabled at the Legislative Council April 30, covers eight smoking control measures that require legislative amendments.

    The bill also suggests authorizing the Secretary for Health to expand no-smoking areas based on the conditions of different districts, as well as to establish exemptions. Hong Kong residents will be barred from smoking while queuing for public transport or outside places with high foot traffic, such as sports venues and health centers.

    The sale of flavored traditional smoking products is banned under the proposed law, with the city’s authorities saying that tobacco companies have used flavorings to “disguise the toxicity” of the products and “entice young people to smoke.” The government plans to impose the ban in phases, with the first phase targeting products with specified additives, excluding menthol. A full implementation is expected to take place in the second quarter of 2027. Violators face a maximum fine of HK$50,000 ($6,500) and six months behind bars.

    In a move to crack down on illicit cigarettes, the government is proposing to require importers and local producers to ensure there is a label attached to every pack of taxed cigarettes sold. Selling or supplying any cigarettes that have no label on their packaging is prohibited.

    The bill also includes a prohibition on providing smoking products to individuals under 18, which is set to take effect on January 1 next year. Those who provide traditional smoking products to minors will face a fine of HK$3,000 for small quantities, while the maximum fine for larger quantities will be HK$25,000 ($3,250). Penalties for supplying alternative smoking products to underage individuals are higher, with a fine of up to HK$50,000 and six months’ imprisonment.

  • Thailand: Vape Users Can be Charged with Receiving Smuggled Goods 

    Thailand: Vape Users Can be Charged with Receiving Smuggled Goods 

    The Thai government will take tougher action against e-cigarette users, who can now be charged with receiving smuggled products, deputy government spokesman Anukul Prueksa-anurak said. The government will step up its suppression efforts of e-cigarettes and related products, prosecuting not only smugglers and distributors but now also the users. 

    Under the Customs Act, the offense carries a jail term of up to five years and/or a fine equivalent to four times as much as the prices of smuggled products plus any duty. E-cigarettes are illegal in Thailand, but that has not stopped them from being openly sold, even in areas near schools, leading to an alarming increase in vaping among young people. The recent hospitalization of teens with lung damage has drawn further attention to the problem.

    Anukul said the percentage of vape users among people aged 15-29 years rose from 5.8% in 2019 to 12.2% in 2024.

    Prime Minister Paetongtarn Shinawatra recently ordered a serious crackdown on e-cigarettes, particularly online sales channels. Anukul said that in the two months since the crackdown began, sales and the number of e-cigarette users had dropped by more than 80%.

  • China Tackles North Korean Cigarette Bootleggers 

    China Tackles North Korean Cigarette Bootleggers 

    Chinese authorities have intensified their crackdown on smuggled North Korean cigarettes, one of Pyongyang’s primary illicit exports, causing the distribution network to shrink dramatically, Daily NK has learned. Although secretly distributed in China for years and popular among local consumers for their value, the contraband cigarettes now face serious challenges as distributors and sellers are being arrested or fined.

    “This month alone, three Chinese dealers handling North Korean cigarettes were arrested for smuggling,” a Daily NK source in North Pyongan province said recently. “Distribution has virtually stopped as Chinese authorities target mail and parcel services in Liaoning and Jilin provinces.”

    About 20 cigarette brands from North Korea’s major tobacco factories—including Yalu River Cigarette Company, Pyongyang Unha Tobacco Factory, and Naegohyang Tobacco Factory—were being sold secretly in Chinese markets.

    North Korean cigarettes match Chinese luxury brands in quality but cost less, making them consistently popular among Chinese smokers. Despite prices nearly doubling since pre-COVID times, they remain cheaper than local alternatives, maintaining steady demand. The situation changed abruptly when China’s State Tobacco Monopoly Administration partnered with police to intensify operations against illicit North Korean cigarette imports and distribution. Those caught distributing or selling the contraband now face substantial fines or prison sentences. 

    “Chinese traders now avoid cigarettes as police raid warehouses and seize stores based on tip-offs,” the source explained. “With 200,000 yuan  ($28,000) fines and threats of being treated like drug dealers, traders are either complaining or quitting the business.”

  • Thailand Tobacco Raids Uncover Major Smuggling Network

    Thailand Tobacco Raids Uncover Major Smuggling Network

    Thailand’s Department of Provincial Administration (DOPA) conducted four simultaneous raids in central Phuket, cracking down on an illegal cigarette smuggling network. Three people were arrested for violating the Customs Act, and cigarettes worth an estimated 4 million baht ($120,000) of lost tax revenue were seized. The network reportedly included several influential figures, including a politician who is a candidate for the local council, though the report did not disclose the politician’s name.

    Investigations revealed the cigarettes were smuggled into Phuket by sea, primarily using tour boats, and then distributed locally by a network. Some of the contraband was also distributed through a private logistics company and was also being sold online.

    Ronnarong Thipsiri, deputy director-general of DOPA said the raids were prompted by tips from residents about the illegal sale and transportation of untaxed cigarettes.