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  • 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.

  • BAT Fiji Cuts Emissions with Sustainable Curing Barn

    BAT Fiji Cuts Emissions with Sustainable Curing Barn

    British American Tobacco (BAT) Fiji has upgraded the curing barn at its Votualevu, Nadi leaf facility, enabling a shift from diesel to sustainable fuel and cutting annual carbon emissions by an estimated 428 tons, according to the Fiji Sun.

    The $1 million “Project GreenEN,” part of BAT’s wider ESG program, is expected to save $200,000 annually while supporting local agriculture. BAT Fiji employs about 1,100 seasonal workers and works with hundreds of farmers, as the group maintains leaf-growing operations in the country.

  • Indonesia Moves to Classify Tobacco as a Strategic Commodity

    Indonesia Moves to Classify Tobacco as a Strategic Commodity

    Indonesia’s House of Representatives (DPR) is drafting a bill to include tobacco among eight strategic plantation commodities, aiming to safeguard the sector and protect farmer livelihoods. The move comes amid falling tobacco absorption and growing farmer concerns. Lawmaker Sofyan Dedy Ardyanto, who represents Temanggung, Central Java, said the bill has been shaped with input from the Indonesian Tobacco Farmers Association (APTI) and local governments.

    Despite declining demand, Indonesia remains one of the world’s largest cigarette markets, with the industry supporting more than 5 million workers and contributing significantly to state revenue through excise taxes.

    Ardyanto cautioned that the country’s ratification of the FCTC has weakened the sector. “The industry is still viable, but our regulations treat it like a dying sector,” he said.

  • Vanuatu MP Plans First Cigarette Factory, Pushes Tobacco as Export Crop

    Vanuatu MP Plans First Cigarette Factory, Pushes Tobacco as Export Crop

    Vanuatu’s MP Jesse Luo is driving plans to establish the nation’s first cigarette factory under his company Golden Leaf, positioning tobacco as a high-value commercial crop for export. After years of trials, Luo said tobacco has proven viable in Vanuatu, with one hectare yielding up to VT100,000 ($833) for farmers in just three and a half months. Golden Leaf will distribute free seeds and technical support, purchasing harvested leaves for processing.

    The factory is slated to open in late 2025 or early 2026, with 99% of output targeted for overseas markets. Samples sent to Singapore for testing have received positive early feedback on quality and storage potential, according to officials. Luo said the initiative aims to reduce reliance on seasonal work abroad by strengthening domestic agriculture.

    “Agriculture is our foundation, and tobacco farming can be one of the industries that helps us move forward,” he said.

  • Bangladesh’s Illicit Cigarette Market Jumps 31%

    Bangladesh’s Illicit Cigarette Market Jumps 31%

    Bangladesh’s illicit tobacco trade has surged sharply, with illegal cigarettes now making up 13.1% of the market, according to a new study by Insight Metrics. The report estimates more than 832 million illicit sticks enter circulation each month, a 31% increase from last year, dominated by “Illicit Whites” with fake or reused tax stamps, alongside smuggled foreign brands such as Oris, Mond, and Esse.

    The government’s annual revenue loss, officially reported at ৳20 billion ($164 million), is likely far higher according to critics as illegal operators bypass cigarette import duties of nearly 600%. Dhaka and Chattogram are identified as key hotspots, with Oris alone moving an estimated 50 million sticks per month. Despite the seizure of over 610 million illicit cigarettes in 16 months, the study suggests enforcement captures only a fraction of the trade.

    Experts warn that steep taxes and price hikes on legal products are driving smokers toward cheaper, unregulated cigarettes. They stress that without coordinated action between government and industry, the booming black market will continue to undermine revenue collection, weaken regulation, and fuel long-term public health risks.

  • CORESTA Launches Public Knowledge Repository

    CORESTA Launches Public Knowledge Repository

    The CORESTA Consumer Reported Outcome Measures (CROM) Task Force announced that it has released its new Knowledge Repository, a centralized platform providing free public access to psychometric and descriptive CROM related to tobacco and nicotine research. The tool is designed to streamline the selection and implementation of CROM for scientists, regulators, and industry stakeholders.

    The repository currently includes 36 psychometric CROM across domains such as perceived dependence, quality of life, and intention to use, with detailed information on sources, characteristics, and psychometric properties. It also catalogs 57 descriptive questions, complete with response options and recommendations, which can be exported directly to Word for survey development.

    With smart search and flexible browsing features, the repository aims to simplify comparison and selection of measures for research projects. The Task Force invites users to explore the resource at www.coresta.org/crom and share feedback on its application.

  • Gudang Garam Denies Layoff Rumors Amid Financial Strain

    Gudang Garam Denies Layoff Rumors Amid Financial Strain

    Indonesian cigarette producer PT Gudang Garam has strongly denied claims of mass layoffs at its Kediri and Tuban factories. Over the weekend, a viral video showing hundreds of PT Gudang Garam Tbk employees shaking hands in what appeared to be an emotional farewell sparked layoff rumors. Adib Musyafa, head of human resources at the Tuban plant, called those rumors false and the video misleading, confirming that all 850 employees remain active, and no layoffs have occurred. He clarified that routine performance evaluations do not automatically lead to dismissals, urging the public to rely on official company statements.

    The Indonesian Trade Union Confederation (KSPI) picked up on the video and said it was verifying the reports and warned of potential ripple effects across the supply chain, which added to the validity of the rumor.

    The company reportedly saw an 82% drop in net profit in 2024 and its stock drop 33.7% this year, pointing to the financial pressures of higher excise taxes, falling sales, and competition from illegal cigarettes, but insists that mass workforce reductions have not taken place.

  • South Korea Updates Tobacco Disclosure Rules Amid Criticism

    South Korea Updates Tobacco Disclosure Rules Amid Criticism

    South Korea will begin enforcing its Tobacco Harm Management Act on November 1, requiring manufacturers and importers to disclose harmful components in tobacco products for the first time. The law mandates inspections every two years for existing products and within one month for new launches. Public disclosure of results is expected to begin late next year.

    The Ministry of Food and Drug Safety (MFDS) has identified 44 harmful substances in combustible cigarettes and 20 in liquid e-cigarettes for mandatory disclosure. However, critics say the standards are outdated, based on a 1997 U.S. framework by Dr. Dietrich Hoffmann, and have obvious “gaps” as products containing synthetic nicotine or marketed as “nicotine-free” are excluded. South Korean law defines tobacco only as products made from tobacco leaves.

    In defense, MFDS noted that South Korea’s list already exceeds WHO and ISO requirements and matches Canada in scope. Officials said they will expand the list in the future and are considering whether disclosures will be published by product type, brand, or in aggregate, along with explanations of toxicity and carcinogenicity.

  • FDA Launches Pilot to Fast-Track Nicotine Pouch Reviews

    FDA Launches Pilot to Fast-Track Nicotine Pouch Reviews

    The U.S. Food and Drug Administration is set to fast-track reviews of nicotine pouches from Philip Morris International, Altria, Reynolds American, and Turning Point Brands in a pilot program launching Monday, according to Reuters. According to transcripts of an agency meeting last Friday, the agency aims to complete assessments by December, providing a quicker path to market for products like Zyn, on!, Velo, Fre, and Alp. The initiative comes amid pressure from the Trump administration to accelerate approvals and streamline the review process for the fastest-growing category of U.S. tobacco alternatives.

    The pilot program will reportedly feature reduced and expedited reviews, more frequent communication between FDA staff and companies, and a focus on essential scientific and safety data, including product characterization, manufacturing consistency, and abuse-liability information. For products already on the market without full authorization, the process could remove uncertainty over legality and potential enforcement actions. Tobacco firms have long lobbied for a faster FDA authorization route, noting that lengthy reviews have allowed competitors to capture market share in the meantime.

    “Adult nicotine and tobacco consumers are increasingly seeking nicotine pouches as a smoke-free alternative, and the industry is rapidly growing in response,” said Laura Leigh Oyler, vice president of U.S. Regulatory Affairs at Haypp Group, who will be speaking at GTNF 2025 in Brussels on the U.S. regulatory landscape. “These consumers deserve a marketplace of FDA-reviewed product choices to support their journey away from more harmful products. 

    “It makes sense that our government should also work to meet the demands of citizens, supporting a regulatory regime that quickly reviews well-designed and well-tested products from responsible and compliant manufacturers. This is a positive step not just for the regulator and the regulated industry, but for the millions of American adults looking for products they can trust.”

  • Philip Morris Gets Wash. Tobacco Deal Fight Sent o Arbitrator

    Philip Morris Gets Wash. Tobacco Deal Fight Sent o Arbitrator

    A Washington state judge ordered R.J. Reynolds Tobacco Co. to arbitrate rival Philip Morris USA Inc.’s claims that it breached a 2017 deal delineating billions of dollars in annual payments. Ruling from the bench on September 3, King County Superior Court Judge Michael Scott granted the motion to force arbitration, contending Philip Morris’ breach-of-contract claim against R.J. Reynolds and the other tobacco producers “clearly arises” out of the 2017 agreement and therefore must be arbitrated.

    The conflict centers on longstanding disagreements over the annual Master Settlement Agreement (MSA) payments to the state. RJR and fellow plaintiffs claim PM USA aims to derail a separate 2025 settlement signed between RJR and Washington by attempting to enforce an arbitration clause dating back to the 2017 agreement. They argue PM USA is improperly interfering in a deal it is not directly part of.

    In June, PM USA submitted its motion to compel arbitration, asserting that RJR and the other defendants are bound by the 2017 arbitration clause and that the court must defer to this private resolution mechanism.