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  • Vietnam Considering Large Tobacco Tax Hikes

    Vietnam Considering Large Tobacco Tax Hikes

    Vietnam’s National Assembly is considering amending the Law on Special Consumption Tax this year to create a robust increase in tobacco taxes, pointing to the World Health Organization (WHO)’s recommendation that the tax be 75% of the retail price. Currently, tobacco taxes in the country are 36% to 38.8% of the price.

    A 2023 report by the Vietnam Health Economics Association estimated that the total cost of tobacco-related healthcare and economic losses reached 108 trillion VND ($4.14 billion) annually, equivalent to 1.14% of GDP and five times higher than the budget revenue generated by the tobacco industry. The report also said cigarettes are too accessible, with 40 domestic tobacco brands selling for less than 10,000 VND (38 cents) per pack.

    The draft amendment being considered in the June session proposes two options: Introducing a fixed tax of 2,000 VND (8 cents) per pack in 2027 or introducing a fixed tax of 5,000 VND (19 cents) per pack in 2026. Both would increase annually until reaching 10,000 VND and 15,000 VND (57 cents) per pack, respectively, by 2031. According to officials, the second, higher-taxed option would generate an annual additional 29 trillion VND ($1.1 billion) in 2030, an increase of 169% compared to scenarios without tax increases, and make the tax rate 59.4% of the retail price.

  • Bulgarian Vape Ban Pending EU Approval

    Bulgarian Vape Ban Pending EU Approval

    The ban on vaping in Bulgaria is set to be enforced, but only after receiving the green light from Brussels. This emerged following the meeting of the parliamentary Committee on Economic Policy and Innovation, which discussed the second reading of amendments to the Law on Tobacco, Tobacco and Related Products.

    The bill, proposed by Kostadin Angelov from GERB (Citizens for European Development of Bulgaria) in February, calls for a full ban on the sale, use, and advertisement of vaping products, as well as energy drinks targeted at minors, according to the Bulgarian News Agency.

    Petar Kanev, chair of the Committee and member of the Bulgarian Socialist Party Parliamentary Group – United Left, described the legislation as one of the most anticipated in recent times. In February, the parliament approved the bill at the first reading with overwhelming support, gathering 197 votes in favor.

    During the committee session, members discussed the timeline for the bill’s enforcement, taking into account the requirement to notify the European Commission about specific provisions. They agreed that while the draft would proceed to the second reading in parliament, it would not come into effect until formal notification from Brussels is obtained.

  • 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.

  • PCA Survey Sees Improvement for Manufacturers

    PCA Survey Sees Improvement for Manufacturers

    The Premium Cigar Association released the results of its First Quarter 2025 survey this week, asking 112 retailers and 24 manufacturers for their opinion on several topics. In comparing 2024 to 2023, 51% of the retailers said they did better, 29% the same, and 20% did worse. For manufacturers, 67% did better, 17% the same, and 17% worse.

    In an open-ended question asking what retailers would like to communicate to manufacturers to help sell product, the nine most common answers were listed, including controlling moderate price increases and shipping, limiting high-end offerings and creating more “economy cigars,” better education/communication, fixing supply issues, and stopping the “what’s new” mentality and focusing on core lines.

    See the entire survey here.

  • CAA Reports U.S. Cigar Imports Down 8.7%

    CAA Reports U.S. Cigar Imports Down 8.7%

    The Cigar Association of America (CAA) reported the U.S. imported 48.4 million premium cigars in the first two months of 2025, an 8.7% decrease from the previous year. The decline was not due to tariffs, which were announced in April, but are believed to be part of the ever-adjusting post-pandemic market.

    The three major cigar exporters all saw declines, with the Dominican Republic down 4.1%, Nicaragua (which accounts for more than half of the market) down 9.3%, and Honduras down 19.3%. Those three producers account for 99% of handmade, premium cigar shipments to the United States.

    “January’s imports are typically anemic compared to the other 11 months of the year, oftentimes less than half of some of the peak import numbers that occur in the second half of the calendar,” Charlie Minato wrote for Halfwheel. “While imports have cooled off from their peak in 2020-2022, the U.S. imported 430 million premium cigars in 2024, up more than 90 million units compared to pre-pandemic levels.”

    According to the CAA, the market increased from 338 million handmade cigars in 2019 to 465 million in 2022.

  • Cross-Border Ring Dismantled, 25M Cigarettes Seized

    Cross-Border Ring Dismantled, 25M Cigarettes Seized

    Officials seized 25 million illegal cigarettes in western Romania and uncovered a connected clandestine factory in Italy in dismantling a cross-border smuggling network. Romanian and Italian investigators, backed by the European Anti-Fraud Office (OLAF), raided a warehouse and nine homes in Romania, in addition to the Italian factory.

     “As a result of the investigations carried out, in cooperation with law enforcement authorities from Italy (Guardia di Finanze), with OLAF’s support, the criminal network was dismantled,” the Directorate for Investigating Organized Crime and Terrorism in Romania) said in a press release.

    “Additionally, approximately 2,500 boxes of cigarettes were discovered and seized, while a clandestine factory was found in Italy, which was allegedly produced for the European illegal market and operated by Romanian, Moldovan, and Italian citizens,” the police said. 

    Romanian prosecutors ordered the detention of two people connected to the searches. They are being investigated for “establishing an organized criminal group and smuggling consisting of the collection, possession, transport, receipt, storage, delivery, distribution, and sale of goods or merchandise that must be placed under a customs regime, knowing that they originate from smuggling or are intended for smuggling.” At least six others were also detained.

  • Study: Switching to Vapes, HTPs Boosts Fitness in Just Weeks

    Study: Switching to Vapes, HTPs Boosts Fitness in Just Weeks

    A study published in Scientific Reports reveals that smokers who switch to electronic cigarettes or heated tobacco products (HTPs) can achieve significant improvements in aerobic capacity as early as four weeks after quitting cigarettes. The study, led by researchers at the Center of Excellence for the Acceleration of Harm Reduction (CoEHAR) of the University of Catania in Italy, provides the first-ever prospective evidence that substituting combustible cigarettes with noncombustible alternatives can measurably enhance cardiorespiratory performance.

    The study, a secondary analysis of the CEASEFIRE trial, used the Chester Step Test to monitor changes in VO₂max, the gold-standard metric for aerobic fitness. Smokers who either quit entirely or substantially reduced their cigarette consumption showed rapid and clinically meaningful increases in VO₂max. These gains were observed equally in users of e-cigs and HTPs, highlighting the potential of combustion-free products as harm reduction tools that also restore physical performance.

    “For young smokers, improved cardiovascular health or reduced cancer risk may seem like distant concerns,” said Riccardo Polosa, a professor at the university and co-author of the study. “But the promise of better fitness, faster recovery, and enhanced athletic performance speaks directly to their lifestyle and aspirations. This could be a more persuasive argument for quitting than traditional risk-based messaging.”

  • BAT Issues First-Half Update

    BAT Issues First-Half Update

    BAT published its 2025 First Half Pre-Close Trading Update yesterday (June 3), followed by a short conference call and Q&A session hosted by Tadeu Marroco, Chief Executive, Soraya Benchikh, Chief Financial Officer, and Victoria Buxton, Group Head of Investor Relations.

    “Our revenue performance in H1 is slightly ahead of our previous guidance, and we now expect to deliver FY revenue growth of 1-2%, supporting 1.5 to 2.5% adjusted profit from operations growth,” Marroco said. “2025 is a deployment year and, as previously highlighted, we expect our performance to be H2 weighted, mainly driven by the roll-out of New Category innovations in key markets from the middle of the year.”

    Improved performance in the modern oral category and U.S. combustibles led the company to raise 2025 revenue growth guidance to 1%-2% from just 1% prior, analysts said. BAT’s shares went up 2% after the reporting.

    Click here for the full update and a transcript of Marroco’s comments.

  • Black Farmers Association Condemns Bill to Repeal Duty Drawback

    Black Farmers Association Condemns Bill to Repeal Duty Drawback

    Representing 130,000 members, the National Black Farmers Association (NBFA) is calling on the U.S. Senate to protect all farmers, especially those who grow American tobacco, by removing the provision to repeal the duty drawback incentive for U.S. tobacco manufacturers from the budget reconciliation bill.

    “Logic suggests that ‘making America great again’ is achieved on the backs of American farmers,” said John Boyd, Jr., founder and president of the NBFA and a fourth-generation black farmer. “Growers in North Carolina, Tennessee, South Carolina, and across our nation will be jeopardized if the duty drawback incentive does not remain in place.

    “To some, the incentive may seem minor. However, to my members and growers across America, protecting the duty drawback is of great significance. On behalf of the National Black Farmers Association, I humbly plead that legislators do not jeopardize the current American agricultural economy nor the future generations of American farmers.”

    The current House version of the legislation removes the Duty Drawback provision specifically for tobacco companies while preserving it for all other industries. Eliminating this incentive for American tobacco manufacturers would impact the farming of American tobacco crops.

    “Duty drawbacks are not loopholes—they are essential safeguards,” the NBFA wrote. “Removing them would reverse over 200 years of trade policy designed to support American exports and bolster domestic manufacturing. Drawbacks stimulate domestic manufacturing in the states and ensure that U.S. leaf tobacco remains competitive in the international marketplace. If legislators remove the drawback incentive, this would lead to a decrease in US-grown tobacco crops.”

  • CASAA to Cease Operations in August

    CASAA to Cease Operations in August

    The Consumer Advocates for Smoke Free Alternatives Association (CASAA) will cease operations, ending its legislative advocacy work by the end of August. Alex Clark, the group’s executive director, made the announcement to members via email. The group has been advocating for tobacco harm reduction (THR) since 2009.

    “CASAA has organized consumer opposition to restrictive laws, commented on policy issues, sent representatives to speak at hearings and public gatherings, and collected thousands of testimonials from consumers who used reduced-harm nicotine products,” wrote Jim McDonald, an industry reporter and member of CASAA board. “Due at least in part to CASAA-organized consumer opposition to proposed state and local laws, hundreds of potentially damaging bills and ordinances have been stopped across the country since 2009.” 

    McDonald pointed to a lack of funding, needed to pay for legislative-tracking software and target communications to members, as the reason for closing the non-profit organization.