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Category: Global Regulation

  • Indonesia Adding, Not Subtracting Tobacco Tax Tiers

    Indonesia Adding, Not Subtracting Tobacco Tax Tiers

    Indonesia’s government plans to expand the country’s tobacco excise tax structure with additional tax tiers this year, according to Finance Minister Purbaya Yudhi Sadewa. The proposal remains under discussion with the House of Representatives, but the minister said implementation would proceed after budget deliberations are completed. The government has said the additional tiers are intended to reduce illicit cigarette circulation and increase state revenue.

    The plan has faced criticism from public health and civil society groups, which argue that adding more tiers to Indonesia’s already complex tobacco tax system may not effectively address illegal cigarette sales. Indonesia currently has eight excise tax groups covering machine-made and hand-rolled kretek cigarettes, and industry observers have called for simplification rather than expansion. Supporters of reforming the structure say a more balanced approach is needed to limit illicit trade while maintaining government revenue from the legal tobacco market.

  • Canada Rolling Out New Graphic Warning Campaign

    Canada Rolling Out New Graphic Warning Campaign

    Canada will introduce 13 new graphic health warnings on cigarette packages beginning Aug. 1 as part of its effort to reduce tobacco use below 5% by 2035. The warnings, covering smoking-related cancers, second-hand smoke, and other health risks, will appear on cigarettes, little cigars, and cigarette tobacco for two years, with additional warnings required on individual cigarettes.

    Health Canada said smoking rates have declined to an estimated 13% in 2024 from 29% in 2001. The government said it is reviewing international tobacco control measures, including the UK’s generational smoking ban, but has no plans to adopt a similar policy.

  • Spain Looks to Include Most Nicotine Products as It Extends Smoking Ban

    Spain Looks to Include Most Nicotine Products as It Extends Smoking Ban

    Spain’s government unveiled draft legislation that would ban smoking on outdoor bar and restaurant terraces while significantly expanding the country’s smoke-free areas and applying the same public-use restrictions to vaping products, heated tobacco products, nicotine pouches, hookahs, and herbal inhalation devices as conventional cigarettes. The proposal, which still requires parliamentary approval, would also prohibit smoking within 15 meters of entrances to public buildings, schools, healthcare facilities, and playgrounds, as well as at sports venues, universities, public swimming pools, work vehicles, and public events.

    The hospitality sector has opposed the terrace smoking ban, warning it could shift smoking into private homes and negatively affect businesses.

  • Vape Group Says UK Retailers Face £330M in Losses from New Packaging Rules

    Vape Group Says UK Retailers Face £330M in Losses from New Packaging Rules

    Vaping advocacy group We Vape warned that proposed UK restrictions on the packaging, appearance, and display of vaping products could cost retailers, wholesalers, and manufacturers more than £330 million while providing no proven social benefit, according to Asian Trader. Citing the government’s impact assessment, the group said the measures — including plain packaging, restrictions on device colors and flavor names, and requirements to keep vaping products out of sight in stores — would result in an estimated £328 million in lost profits and £2.8 million in compliance costs for approximately 76,000 retailers. We Vape also criticized the government’s planned £100,000 enforcement budget as inadequate and argued that stronger enforcement of existing underage sales laws would be more effective than imposing additional regulatory burdens on legitimate businesses.

  • Pakistan Pressed to Investigate Cigarette Smuggling Ring

    Pakistan Pressed to Investigate Cigarette Smuggling Ring

    ACT Alliance Pakistan called for a nationwide investigation into what it describes as a highly organized network smuggling Afghan-linked cigarette brands, including Milano and Mond, into Pakistan. The group alleges the illicit trade is costing the government billions of rupees in lost tax revenue annually while funding cross-border money laundering and organized criminal activity. According to ACT Alliance, the cigarettes are smuggled through Balochistan and distributed across Pakistan using sophisticated logistics networks, sometimes concealed within shipments of legitimate goods.

    The organization urged Pakistan Customs, the Federal Board of Revenue, and law enforcement agencies to dismantle the alleged smuggling and financial networks, arguing the issue has evolved beyond tax evasion into a broader national security concern.

  • 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.