Category: People

  • Taxing balancing act

    Taxing balancing act

    Indonesia is to follow a policy of foreshadowing cigarette excise increases in such a way as to limit smoking while lessening the impact of any cigarette-sales reduction on tobacco-industry jobs, according to a story at en.tempo.co.

    Finance Minister Sri Mulyani Indrawati said the Government had to address two concerns before issuing a regulation on cigarette excise: its impacts on health and the industry.

    Sri Mulyani said that the use of tobacco by smokers, especially children, would badly affect their health in the future; so the Government imposed excise on tobacco products in a bid to lessen its consumption.

    However, on the other side of the coin, the tobacco industry employed a large number of workers, including tobacco and clove farmers.

    Speaking before millennials at a Youth Engagement event at Balai Sarbini, Jakarta, Sri Mulyani implied that, given these circumstances, it was difficult for the Government to decide whether to prioritize individual physical health or economic health.

    Therefore, she said, the Government planned to gradually increase taxes based on the roadmap of tobacco excise, which would provide “a signal to the tobacco industry and regional administrations”.

    At the same time, Sri Mulyani said, the Finance Ministry, through the Customs and Excise Directorate General, would strive to reduce the illegal trade in cigarettes.

    In 2017, the illegal trade was said to have accounted for 10.9 percent of the cigarette market, a figure that fell in 2018 to 7.03 percent.

  • E-cig epidemic explodes

    E-cig epidemic explodes

    The US Food and Drug Administration Commissioner Scott Gottlieb, MD, has said that his agency might need to pull pod-based nicotine products off the market to fight teen vaping, according to a story by Anna Edney published by the LA Times.

    Speaking at the Brookings Institution on Tuesday, Gottlieb said he had had a contentious meeting last week with executives of Altria and Juul Labs.

    “The e-cigarette industry has been overly dismissive” of the risk that young people could become addicted to nicotine through e-cigarette use, Gottlieb said. “We’re capturing an exploding epidemic right now.”

    Gottlieb said the FDA was working on defining what constituted a pod-based product in case it needed to ban them temporarily.

    Sales of vaping pods could resume if manufacturers showed that their devices were geared toward adult cigarette smokers trying to quit, and not toward young people.

    “It was a difficult meeting,” the commissioner said, noting that there was a “disconnect” between the companies’ priorities and those of health officials.

    He added that it appeared Altria’s decision to purchase a stake in Juul was purely a business decision and not driven by public health concerns.

    Edney said that Altria and Juul hadn’t responded to Gottlieb’s characterization of the meeting.

    But she added that both companies said they remained committed to combating underage use of e-cigarettes.

  • Smoking ban foreshadowed

    Smoking ban foreshadowed

    The restaurant chain operator Skylark Holdings said on Tuesday that it would impose a tobacco smoking ban at all of its outlets in Japan from September, according to a story in The Japan Times.

    A Skylark Holdings official was quoted as saying that the group, which is thought to have about 3,200 outlets and which operates the Jonathan’s and Gusto chains, “wants to prevent undesirable passive smoking, and cares about the health of customers and some 100,000 employees”.

    Currently, many Skylark group restaurants have smoking areas that are separated from non-smoking areas, but these are to be removed.

  • Round one to e-cigarettes

    Round one to e-cigarettes

    The High Court of Delhi, India, has stayed the Central Government’s attempt to ban electronic cigarettes in the country under the Drugs and Cosmetics Act, saying that these products do not fall within the Act’s definition of a drug, according to a story in the Bar & Bench, relayed by the TMA.

    Two e-cigarette companies, Litejoy International Pvt Ltd and M/S Focus Brands Trading were said to have petitioned the court in response to a February 22 Communication from the Directorate General of Health Services asking state licensing authorities to prohibit the sale, manufacture, distribution, importation and advertisement of e-cigarettes and ENDS [electronic nicotine delivery systems] in their jurisdictions.

    The petitioners argued that ENDS were less risky substitutes for combustible cigarettes and that the Government’s decision affected the right of consumers to choose e-cigarettes in place of cigarettes.

    Additional Solicitor General, Maninder Acharya, submitted that since ENDS assisted smokers to give up their tobacco addiction, ENDS and all other devices fell within the definition of ‘drugs’ as defined under Section 3(b) of the Act.

    The court observed that the devices were not sold as therapeutic devices so the Central Government did not have the jurisdiction to issue the circular.

    The government has two weeks to issue its response and the case will be heard on May 17.

  • Production down 18 percent

    Production down 18 percent

    Cambodia’s leaf-tobacco production fell last year, according to a story in The Phnom Penh Post citing figures from the Ministry of Agriculture, Forestry and Fisheries.

    Cambodia produced 7,454 tons of tobacco last year on 5,743 ha, down respectively 18 percent from 9,089 tons and 16 percent from 6,859 ha the previous season.

    Sum Ra, an agricultural office holder in Tbong Khmum province, the country’s largest producer of leaf, said tobacco cultivation had decreased during the past few years due to market fluctuations.

    “Tobacco cultivation is not much of a challenge; it is easy to grow along the river,” he said.

    “Tobacco cultivation increases and decreases depending on market fluctuations. Farmers will alternate with corn if the tobacco market is not good.”

    Meanwhile, the Ministry of Commerce spokesman Seang Thay said on Monday that Cambodia still enjoyed preferential duty-free market access to Vietnam for agricultural products, including tobacco.

    Under the agreement with Vietnam, Cambodia exported 1,200 tons of tobacco worth $2.37 million to Vietnam during 2017, whereas during 2016 it exported to Vietnam 989.75 tons valued at $1.91 million.

  • Looking for change

    Looking for change

    Knowledge∙Action∙Change (KAC), a private sector public health agency based in the UK, has called for action to prevent the dramatic rises in smoking rates in Africa that have been predicted by the World Health Organization.

    In a note issued through PRNewswire, KAC said that while globally smoking rates were decreasing, in many lower- and middle-income countries, African nations among them, rates were increasing. WHO data showed a steep rise in smoking in many African countries, with many five-year projected increases at five percent and more.

    With this in mind, public health experts from KAC had this week visited Lilongwe, Malawi, and Nairobi, Kenya, to launch No Fire, No Smoke – The Global State of Tobacco Harm Reduction 2018 (GSTHR), ‘a landmark report on the worldwide availability, regulation, and use of lower-risk alternatives to tobacco, such as e-cigarettes (vapes), heat-not-burn devices, and Swedish snus (pasteurized oral tobacco)’.

    ‘A proven public health strategy, harm reduction refers to policies, regulations, and actions that reduce health risks by providing safer forms of hazardous products or encouraging less risky behaviors, rather than simply banning them,’ the note said.

    ‘Independent evidence from the UK Government’s leading public health body demonstrated recently that vaping is at least 95 percent safer than smoking tobacco. Yet despite the WHO Framework Convention on Tobacco Control (FCTC) of 2003 citing harm reduction as one of its main tactics, the WHO has been persistently negative about e-cigarettes, has called for their ban or strict regulation, and sees them as a threat, rather than as a public health opportunity.

    ‘Partnering with the information dissemination project, Tobacco Harm Reduction Malawi, and the newly launched Campaign for Safer Alternatives based in Kenya, the GSTHR report’s publishers presented global findings on tobacco harm reduction, showing that many smokers have switched to safer products and dramatically reduced the risks associated with smoking.’

    “We need to halt the dramatic rises in smoking rates in Africa which are predicted by WHO,” Professor Gerry Stimson, director of KAC and Emeritus Professor at Imperial College London, was quoted as saying. “Most smokers want to quit smoking, but they find it hard to stop using nicotine. Around the world, millions of lives depend on both consumer and government acceptance of safer alternatives to smoking.”

    Meanwhile, Chimwemwe Ngoma, project manager, Tobacco Harm Reduction Malawi and holder of a Global Tobacco Harm Reduction Scholarship, said that Tobacco Harm Reduction Malawi believed that all citizens of Malawi should be informed of the health consequences, addictive nature, and mortal threat posed by tobacco consumption and exposure to tobacco smoke. “Malawians should be able to make more informed public and personal choices, including having access to safer nicotine products, to enable them to live longer and healthier lives,” he said.

    And Joseph Magero, chair of the Campaign for Safer Alternatives and holder of a Global Tobacco Harm Reduction Scholarship, said society’s relationship with tobacco and nicotine was changing due to technical developments in vaping devices and other safer nicotine products. “The Campaign for Safer Alternatives has formally launched this week to ensure more people across East Africa receive accurate information on alternatives to smoking,” he said. “By arming people with information, we can finally begin to curb the tobacco epidemic.”

  • That’s some ‘problem’

    That’s some ‘problem’

    A public health expert in the US has set out to answer a question that has probably popped into many heads in recent times: why does vaping seem so threatening to the tobacco control movement?

    Writing on his blog, The Rest of the Story, Dr. Michael Siegel (pictured), a Professor in the Department of Community Health Sciences, Boston University School of Public Health, starts off by saying that he and his colleagues in the tobacco control movement had based their entire careers on the principle that it was wrong to lie to the public.

    On the other hand, much of their campaign against Big Tobacco had been based on the contention that cigarette companies lied to the public about the health risks of smoking.

    However, Siegel said he believed that during the past few years the tobacco control movement had largely abandoned truth as a central value in so far as its campaigns against vaping were concerned.

    Why is vaping so threatening to the tobacco control movement? he asks. Is it threatening because it is extremely dangerous – basically as harmful as smoking – and is therefore harming the health of the nation’s 11 million adult vapers?

    No, he replies to his own question; it’s precisely the opposite…

    ‘The problem with vaping is that it is not killing anyone, so there is no punishment for the vice of being addicted to nicotine,’ he said. ‘And that’s something that the tobacco control movement can simply not tolerate.’

  • Throw them in prison

    Throw them in prison

    Errant smokers who are issued a RM250 summons for flouting the no-tobacco-smoking rule in Malaysia’s eateries risk paying up to RM10,000 if they are hauled before a court, according to a story in The Star quoting the deputy health minister Dr. Lee Boon Chye.

    Smokers who were issued summonses from July 1 would be hit with the maximum RM250 fine, he said.

    However, offenders who failed to settle the summons would be hauled before a court.

    “The courts can impose a maximum sentence of RM10,000 or two years’ jail,” the deputy minister said when replying a supplementary question during Question and Answer time in the Dewan Rakyat (lower house of Parliament) yesterday.

    At the same time, Lee added that the ministry would consider expanding the smoking ban to cover other areas.

    “There are some countries which have banned smoking in cities altogether, only allowing it in specific areas,” he said.

    Lee assured lawmakers that the Government was committed to implementing the World Health Organization’s Framework Convention on Tobacco Control (FCTC), which Malaysia had ratified in 2005.

    However, he said that implementation of the FCTC protocols would be done in stages, including one that would require cigarettes to be sold only in standardized packaging.

    “Plain cigarette packaging was proposed by the Health Ministry under the previous administration,” Lee was quoted as saying.

    “The proposal was withdrawn following resistance and objections.”

  • Swings and roundabouts

    Swings and roundabouts

    Indonesia is trying to find a balance whereby it can benefit from tobacco’s huge economic contributions while reducing its toll on the nation’s health, according to a story in The Jakarta Post.

    In a statement issued during the weekend, Industry Minister Airlangga Hartanto said cigarette excise had reached Rp153 trillion last year, up by 3.9 percent from Rp147 trillion in 2017.

    “Cigarette excise tax revenue contributed 95.8 percent of the national excise tax revenue,” he said.

    At the same time, Airlangga said Indonesia exported cigarettes worth US$931.6 million last year, up by 2.98 percent from $904.7 million in 2017.

    Because the cigarette industry mostly used domestic raw materials, including tobacco and cloves, it was able to compete on the global market.

    Speaking about the health issues created by tobacco products, Airlangga said: “We will take employment and people’s health into consideration”.

    The Government, he added, had been trying to create policies that would be acceptable to all parties in the tobacco industrial sector (IHT).

    It had to ensure business certainty among IHT players.

    For that, he said, the Government had issued a number of regulations – Government Regulation (PP) No. 109/2012 on security for materials of addictive ingredients, and Presidential Regulation No. 44/2016 on the negative investment list, which was supported by Industry Ministry Regulation No. 64/2014 on cigarette industry control.

  • Make them pay

    Make them pay

    Small retailers in Malaysia are said to have been frightened off selling illicit cigarettes by the prospect of a RM100,000 fine, according to a story by Mark Rao for The Malaysian Reserve.

    Such stores had been havens for smokers who needed to find cheap cigarettes, but because they are not typically big-money businesses, they have had to think twice.

    A Center for Public Policy Studies’ report last year found that well-known illicit brands such as John, Canyon and Luffman were typically hidden by small retailers in opaque boxes and shelves or underneath tables, from where they were sold to customers upon request.

    Illicit cigarettes took 64 percent of the market during the fourth quarter of last year, according to a report cited by British American Tobacco (M).

    With the Government needing higher revenues to plug a huge financial hole, it promised stricter enforcement against illicit cigarettes and liquor.

    The Government is said to be aiming to ‘recover’ about RM1 billion in revenue lost to the black market with its threats of minimum fines of RM100,000 and six months’ in jail for individuals caught dealing with illicit cigarettes and liquor.

    The Royal Malaysian Customs Department and other relevant agencies are said to have increased preventive measures since January.

    But BAT MD Erik Stoel said the government’s intent was there and important regulatory steps had been taken, but enforcement intensity was still not at the level to make a significant impact.

    “It is early days, but we believe it is critical that more focus is put on enforcement and more law enforcement agencies join the party,” he told The Malaysian Reserve.

    He said changing the law dealing with illicit cigarette trade cannot be the sole option and urged a unified front between the relevant authorities to tackle the issue.

    Meanwhile, the Galen Center for Health and Social Policy CEO Azrul Mohd Khalib said the environment for the black market for cigarettes and tobacco products had to be made hostile, intimidating and prohibitive by the authorities.

    “One way to do this is to threaten and enforce severe penalties for small retailers and traders for carrying these products,” he said, citing the termination of business licenses as an effective deterrent.

    Cigarette excise duties in Malaysia rose 110 percent from 2011 to November 2015, while the Sales and Services Tax last year resulted in an increase of up to four percent in retail cigarette prices.