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  • Illicit Cigarettes Grip Majority Share in Pakistan

    Illicit Cigarettes Grip Majority Share in Pakistan

    Pakistan’s tobacco industry is facing a mounting crisis as illicit cigarettes now account for an estimated 56–58% of the market, costing the government more than Rs400 billion ($1.4 billion) annually in lost tax revenue. Legal tobacco companies, which contribute nearly Rs270 billion ($945 million) in taxes each year, have seen their market share plummet amid growing competition from counterfeit and untaxed products.

    Industry experts point to weak enforcement of Pakistan’s Track & Trace system, a digital tax-stamp program meant to monitor production and sales. While Prime Minister Shehbaz Sharif has directed authorities to accelerate its rollout, implementation remains inconsistent, allowing fake and unregistered brands to flourish and evade minimum pricing rules and taxation.

    Analysts warn that without decisive action, illicit trade will continue to destabilize the economy and undermine legitimate businesses. They recommend tighter border controls, stronger retailer-level enforcement, and harsher penalties for smuggling and counterfeiting. “Educating retailers on how tax stamps work and how to verify legal products is also crucial in preventing the spread of untaxed goods,” said macroeconomic analyst Osama Siddiqui.

  • Ireland to Ban Tobacco and Vape Vending Machine Sales

    Ireland to Ban Tobacco and Vape Vending Machine Sales

    Beginning today (September 29), Ireland will ban the sale of tobacco and nicotine inhaling products from self-service and vending machines under new rules contained in the Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023. Minister for Health Jennifer Carroll MacNeill said the measure will cut off a source of easy access for minors, calling it “another significant milestone” in the government’s tobacco control policy and Tobacco Endgame strategy.

    Minister of State for Public Health, Wellbeing and the National Drug Strategy Jennifer Murnane O’Connor stressed that the legislation aims squarely to protect children. “We are cutting off an avenue of easy access that has been shown to contribute to early experimentation and long-term addiction,” she said, adding that prevention is central to building a healthier Ireland. The Health Service Executive confirmed that Environmental Health Officers will conduct nationwide inspections to monitor compliance.

    The measure aligns Ireland with two-thirds of Parties to the World Health Organization Framework Convention on Tobacco Control, which recommends banning vending machine sales as a form of advertising and promotion.

  • Italy Busts Largest Counterfeit Cigarette Factory

    Italy Busts Largest Counterfeit Cigarette Factory

    Italian customs seized over 150 tons of counterfeit cigarettes from what authorities say is the country’s largest illegal factory, located near Cassino. The 1,600-square-meter underground facility produced an estimated 2.7 billion cigarettes annually and was hidden behind a sophisticated hydraulic mechanism in a logistics warehouse.

    The bunker included three production lines, a ventilation system, and living quarters for workers. Officials estimate the operation generated over €900 million ($1.1 billion) annually, with €600 million in evaded taxes uncovered so far. Several suspects have been identified, and one person has been arrested.

  • Indonesia Working Against Illegal Cigarettes

    Indonesia Working Against Illegal Cigarettes

    The Indonesian government is preparing a new regulation to curb the spread of illegal cigarettes, particularly those sold without excise bands, Deputy Minister of Industry Faisol Riza announced today (September 29). The plan will be accompanied by an expansion of Tobacco Products Industry Zones (KIHT) to more regions, an initiative that aims to attract illegal cigarette producers into these zones, encouraging them to operate legally under the tax-paying system.

    Data from the Ministry of Industry shows illegal cigarettes rose from 3% of total cigarette volume in 2019 to 6.9 percent in 2023, with machine-rolled clove cigarettes (SKM) making up the bulk of untaxed products. Riza warned that the illegal trade is hurting the domestic tobacco industry, causing idle machinery, reduced production, layoffs, and a negative impact on workers’ welfare.

    Indonesian smokers’ sensitivity to price has fueled demand for cheaper, untaxed cigarettes, the minister said. “A conducive business climate can only be realized if all parties, including the public, work together to eradicate the circulation of illegal cigarettes,” Riza said. The government emphasized that tackling illegal trade is essential to protecting legal producers and sustaining jobs within the sector.

  • EU Tobacco Tax Plan Faces Fierce Pushback

    EU Tobacco Tax Plan Faces Fierce Pushback

    The European Commission’s plan to overhaul tobacco taxation has sparked sharp opposition from member states, farmers, and industry groups, who warn it could devastate rural economies, fuel illicit trade, and hand China greater leverage over Europe’s tobacco supply chain. The July 2025 proposals — the first major update to EU tobacco tax rules since 2010 — would harmonize excise duties on heated tobacco, e-liquids, and nicotine pouches, while also bringing raw tobacco under customs tracking. A new “TEDOR” mechanism would redirect 15% of national tobacco excise revenue to the EU budget, raising an estimated €11 billion annually.

    France and the Netherlands have seen illicit trade soar, with untaxed products making up nearly 40% of consumption in France. Sweden, Portugal, and southern European producers are leading resistance, citing threats to tens of thousands of farming jobs.

    The Commission insists the reforms are vital to protect public health and modernize the single market, but unanimity in the Council will be required to push the package through by 2028.

  • Malaysian Think Tank Warns Vape Bans Will Fuel Black Market

    Malaysian Think Tank Warns Vape Bans Will Fuel Black Market

    Policy think tank Datametrics Research and Information Sdn Bhd (DARE) cautioned that state or nationwide vape bans in Malaysia could backfire by boosting the illicit market, undermining investor confidence, and costing the government tax revenue and jobs.

    The warning follows a survey by the Malaysian Vapers Alliance showing 74% of consumers fear bans will drive illegal sales, while 80% worry about unsafe, unregulated products. DARE Managing Director Pankaj Kumar said prohibition “has never worked” and argued that enforcement of existing law under Act 852 is a more effective solution.

    Malaysia’s vape market, once worth RM3.48 billion ($835 million) and supporting 31,500 jobs, has sharply contracted since new regulations took effect, with registered brands plunging from 3,200 to 390. DARE stressed that demand remains strong, but inconsistent state and federal policies are pushing consumers to untaxed and unsafe products.

  • Indonesia Won’t Raise Tobacco Tax

    Indonesia Won’t Raise Tobacco Tax

    Reuters reported that Indonesia will keep its excise tax rates on tobacco products unchanged next year, after considering the impact such taxes have on employment in the tobacco industry, Finance Minister Purbaya Yudhi Sadewa told a press conference today.

    “We decided not to increase excise tax rates for tobacco products next year, but we will clean up the market of illegal tobacco products,” Purbaya said, adding his decision has put consideration to avoiding layoffs.

  • Arizona Raises Tobacco Age to 21

    Arizona Raises Tobacco Age to 21

    A new law taking effect today raises Arizona’s minimum age to buy or possess tobacco products from 18 to 21, aligning the state with federal law passed in 2019. Lawmakers approved SB 1247 in June after federal officials warned Arizona risked losing funding if it failed to comply. Until now, Arizona was one of just seven states that had not updated its laws, leaving some retailers still selling to 18-year-olds.

    The law covers cigarettes, cigars, chewing tobacco, vaping products, and hookah. Retailers who sell to under-21 customers face a Class 3 misdemeanor, while possession or distribution by those under 21 is a petty offense. A military exemption was included, but public health experts say base commanders are unlikely to honor it.

  • Russia to Require Licenses for Tobacco and Vape Sales From 2026

    Russia to Require Licenses for Tobacco and Vape Sales From 2026

    The Russian government approved a bill that will require licenses for the sale of all cigarettes and vaping products beginning March 1, 2026, in a bid to tighten market oversight and curb youth consumption. The bill now moves to the State Duma for debate and adoption.

    The law, modeled on alcohol industry rules, will mandate licenses for wholesale, retail, and delivery sales, with penalties including license revocation for violations such as selling to minors. Authorities are also weighing tougher measures, including mandatory registration in the national “Chestny Znak” digital tracking system and criminal liability for large-scale illegal trade.

  • FDA Posts New Materials for IQOS Renewal Applications

    FDA Posts New Materials for IQOS Renewal Applications

    The U.S. Food and Drug Administration announced today that its Tobacco Products Scientific Advisory Committee (TPSAC) will convene October 7, to evaluate the renewal applications of Philip Morris Products S.A. for its IQOS 2.4 and IQOS 3.0 heated-tobacco systems and associated HeatSticks. These devices were originally granted Modified Risk Tobacco Product (MRTP) orders in 2020 and 2022, allowing the marketing of reduced-exposure claims—specifically, that heating (not burning) tobacco significantly lowers exposure to harmful chemicals.

    The renewal will hinge on whether PMI can demonstrate that post-market evidence continues to support those claims under section 911(g)(2) of the Food, Drug, and Cosmetic Act.  The FDA has republished redacted application materials and opened a public comment period; speakers at the TPSAC meeting may submit data supporting or critiquing PMI’s dossier.

    “A vital mission of FDA is to make tobacco-related disease and death a part of America’s past,” officials from PMI said in a statement. “Smoke-free products, like IQOS, play a critical role in helping achieve that mission and provide adults who smoke with a real opportunity to change. IQOS, when marketed with the reduced-exposure claim, promotes complete switching and reduction in cigarette consumption.”

    Should the renewal be approved, PMI would retain authority to market IQOS with MRTP claims; if rejected, those claims could expire, undermining the company’s “reduced-exposure” positioning in the U.S. market.

    The outcome will not only be of interest for PMI, but for the broader heated tobacco and smoke-free sectors looking for regulatory precedents.