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  • Philippine Government Urged to Fight Illicit Trade with Lower Taxes 

    Philippine Government Urged to Fight Illicit Trade with Lower Taxes 

    As the Philippine government is making progress against illicit vape products with tax stamps, the Philippine Tobacco Institute (PTI) suggests it lower tax rates on cigarettes to replenish its declining revenues as the price disparity between legal and illicit products worsens. Last year, illicit tobacco incidence reached a record 18.2%.

    PTI said tax policies and illicit trade are inextricably linked as the organization pushes for the recalibration of tobacco excise taxes and enhancement of enforcement and prosecution efforts. It issued the call days before the Senate Committee on Ways and Means discusses House Bill 11360, which seeks to adopt an odd-even scheme in hiking the tobacco excise taxes: 2% every even-numbered year and 4% every odd-numbered year until 2035. The current tobacco excise tax rate increases by 5% annually, with a base tax of P60 ($1.08) per pack.

    PTI president Jericho Nograles argued that overly aggressive or automatic tax hikes can incentivize illicit trade. He said higher taxes widen the price gap between legal and illegal products, thus increasing the profitability of smuggling and counterfeiting. PTI said tax revenue continues to decline while smoking incidence increases, meaning people are switching products, that can cost P40 (72 cents) per pack versus P140 ($2.52) for legitimate ones.

     “The automatic tax hikes have resulted in declining government revenues,” Nograles said. “Our position is that if Congress lowers the rates and the government steps up in enforcement, then there would likely be better collections and revenues. It would not only be acceptable, but a win-win for industry and government when illicit trade in tobacco is stopped.”

  • Already Struggling with Illicit Trade, Pakistan Being Pushed to Raise Tobacco Taxes 

    Already Struggling with Illicit Trade, Pakistan Being Pushed to Raise Tobacco Taxes 

    Pakistan’s Federal Board of Revenue (FBR) chairman, Rashid Mahmood Langrial, said massive tax evasion in the tobacco sector is costing the country’s economy nearly Rs300 billion ($1.1 billion), and that, because of limited manpower, only one out of 10 trucks carrying illicit cigarettes is caught.

    Langrial said the FBR is working to train and empower local law enforcement agencies within the provinces to battle illicit trade at the retail level, and that any cigarette without a mandatory stamp is illegal and subject to seizure.

    This comes at a time when the leading legal cigarette manufacturers in Pakistan are reporting significant decreases in sales volumes, presumably because the government placed a 200% Federal Excise Duty (FED) on all brands of cigarettes in the budget for the 2025-2026 fiscal year. Still, sources told Business Recorder that the FBR is facing strong international pressure from the World Health Organization to raise the FED further.

  • Vietnam’s Cigarettes “Too Affordable”

    Vietnam’s Cigarettes “Too Affordable”

    Between 2010 to 2022, Vietnam’s per capita income increased by 203%. Cigarette prices, however, only rose by 56%, making tobacco too affordable and encouraging consumption, Phan Thi Hai, deputy director of the Tobacco Harm Prevention Fund under the Ministry of Health said. She said Vietnam raised smoking taxes three times between 2008 and 2019, but the increases were so small they had no effect on smoking rates.

    “Vietnam’s cigarette prices remain among the lowest globally, making them easily accessible, especially to low-income groups and youth,” Hai said. She said even with the country’s 75% “special consumption tax” on tobacco products, a pack of cigarettes with a factory price of 3,900 VND (15 cents) ends up costing the consumer only 10,000 VND (39 cents). She also said in Hanoi and HCM City, there are still about 40 cigarette brands priced below 10,000 VND per pack, some as low as 7,000–8,000 VND (27 to 31 cents).

    Hai said to effectively reduce tobacco consumption, Vietnam must reform its tobacco tax policy by implementing a steady tax increase over time. This would ensure that cigarette prices keep pace with income growth and gradually approach the tax level recommended by the WHO. She proposed introducing an absolute tax of at least 5,000 VND (20 cents) per pack by 2026, increasing to 15,000 VND (60 cents) per pack by 2030, which theoretically would help reduce the adult smoking rate to below 36% for men and below 1% for women, consistent with the targets of the National Tobacco Control Strategy by 2030.

    Currently, the total tax share in the retail price of cigarettes in Vietnam is only 36%, below the WHO’s recommended 75% and lower than regional peers such as Thailand (78.6%), the Philippines (71.3%), and Singapore (67.5%).

  • 22nd Century Sees 50% Jump from Q4 2024 to Q1 2025

    22nd Century Sees 50% Jump from Q4 2024 to Q1 2025

    22nd Century Group, Inc. today (May 13) announced results for the first quarter, ended March 31, and provided an update on recent business highlights. Compared to the fourth quarter 2024, first quarter 2025 saw net revenues increase from $4 million to $6 million and gross profit losses declined from $1.3 million to $600,000. Operating expenses decreased from $2.8 million to $2 million, the lowest quarterly amount since company restructuring began in 2023, and operating losses decreased from $4.1 million to $2.6 million.

    “Our first quarter results demonstrate the positive trends we expect to build on in 2025 as we secure new opportunities to drive volume across our VLN, core CMO and filtered cigar businesses, with a particular emphasis on leveraging both our own and customer driven campaigns for partner branded products,” said Larry Firestone, CEO of 22nd Century Group. “We are excited about the upcoming launch of now two partner-branded VLN products, both for chains with substantial retail store counts, bringing additional partner-supported marketing and outreach activity to grow sales volumes in the VLN category. We are moving ahead on these and other opportunities ahead as we continue to execute our growth strategy in 2025.”

    View the full financial report here.

  • New Coalition Calls to Ban Plastic Cigarette Filters

    New Coalition Calls to Ban Plastic Cigarette Filters

    In an article written for Recycling Magazine, the No Plastic Filter! organization said that today (May 13) “marks the launch of the international No Plastic Filter campaign, uniting voices across the planet for a ban on plastic cigarette filters.” It further said, “A growing coalition of citizens, businesses, institutions, scientists, NGOs and local authorities worldwide is calling on policymakers to take action.”

    The No Plastic Filter-campaign is an initiative by Dutch NGO Fair Resource Foundation, which is part of the Dutch Plastic Cigarette Butt Collective.

    “Plastic cigarette filters are the single most common form of plastic pollution globally,” the article said. “It is estimated that billions of filters end up in the environment every day.”

    “Even if 90% of used cigarette filters would be discarded in a bin, it would still be a massive environmental problem,” campaign leader Karl Beerenfenger said. “That’s why awareness raising and cleanups are not a solution, although the tobacco industry likes to place responsibility on smokers by financing those activities.’’

    The article claims cigarette filters are useless, merely “marketing tricks inserted by tobacco companies to placate health concerns,” and that the World Health Organization calls cigarette filters ‘’problematic and avoidable plastic’’ and calls on governments worldwide to ban all filters. The No Plastic Filter campaign said it aims at the Global Plastics Treaty, which is currently being negotiated by the United Nations, and the Single-Use Plastics Directive of the European Union.

  • BAT Launches New Campaign as it Updates Neo Series

    BAT Launches New Campaign as it Updates Neo Series

    British American Tobacco (BAT) Japan announced the fourth cycle of the “Live Life in Color” campaign with the launch of its Limited Edition glo Hyper Pro Aurora heated tobacco device. BAT is looking to revive the glo franchise in Japan, the world’s largest and most competitive heated tobacco market, as its category share dipped from 20.1% in 2022 to 17.8% in 2024.

    The device will only be available at the official VELO online store beginning May 26, with a price of ¥4,980 (US$33.6). “Live Life in Color” is glo’s brand campaign with the theme “Turn vibrant days into joy.” BAT further enhanced the richness and fullness of the fruity flavors, improving the aroma and taste, while also enhancing the cooling sensation for an even more refreshing experience.

    In addition, BAT also revamped the entire neo series by upgrading the packaging colors and changing the flavor names. The packaging colors now match the flavors, making it easier for consumers to recognize the flavor. In particular, the color of the menthol packs changed from dark to light as the flavor changed from strong to weak menthol.

  • JTI Adds Three Flavors to Pouch Line

    JTI Adds Three Flavors to Pouch Line

    Japan Tobacco International UK has expanded its Nordic Spirit nicotine pouch line by introducing “three on-trend flavor variants designed to elevate the consumer experience and cater to the growing demand for berry and tropical flavors.” With Nordic Spirit already delivering £4.5m in value sales each month

    Available now for independent retailers and symbol groups, the new Raspberry, Tropical Mix, and Forest Berries offerings feature a quicker and stronger flavor release, along with increased moisture content. The packaging and pouch size has also been changed to be more convenient for the user.

    “Consumers in this space are seeking bolder flavor experiences and greater variety from nicotine pouches,” said Bruce Terry, Portfolio Brand Manager at JTI UK. “That insight guided the development of our latest Nordic Spirit range, where we placed a strong emphasis on both intensity and diversity of flavors.

    “With enhanced taste profiles and a more impactful sensory experience, our new variants are set to excite the category, creating a valuable opportunity for retailers to drive sales and maximize profitability.”

    Retailers can purchase the new Nordic Spirit flavors through wholesalers or via the JTI360 website.

  • Zimbabwe, Philippines Create Tobacco Pact 

    Zimbabwe, Philippines Create Tobacco Pact 

    Tobacco producers in Zimbabwe and the Philippines have entered into a pact to work together and share expertise. Tobacco is Zimbabwe’s largest agricultural export, generating $1.3 billion from 236 million kg exported in 2024, and is expecting to export 300 million kg this year. Of that, however, 98% of the tobacco is exported raw, allowing manufacturers in 60 other countries to collect much of the profits. The Philippines, on the other hand, processes 46 billion cigarettes domestically each year.

    “This is an ideal opportunity for Zimbabwean farmers and processors,” Musi Muzite, acting executive secretary for Zimbabwe’s National Economic Consultative Forum, said. “We have made significant progress in production, and by leveraging the Philippines’ expertise in processing, we can unlock greater value across the entire tobacco chain.”

    Through the Tobacco Value Chain Transformation Plan, Zimbabwe hopes to convert the tobacco manufacturing sector into a $5 billion industry by 2030 by promoting local value addition, increasing domestic funding, and improving infrastructure, such as curing facilities. It also hopes to increase its tobacco exports in the Philippines.

    “We have been in Zimbabwe and our mission is to explore areas where we can collaborate, particularly in the production of tobacco,” Robert Ambrose, the Philippines’ National Tobacco Administration regulatory manager said. “While we have a comparative advantage in processing, Zimbabwe leads in raw tobacco production, and we see great potential in combining our strengths.” 

  • CAPHRA Says Vaping Misinformation has Deadly Consequences

    CAPHRA Says Vaping Misinformation has Deadly Consequences

    Today (May 12), the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) released a critical position statement warning that misinformation about safer nicotine products is putting millions of lives at risk and undermining global public health efforts. 

    “CAPHRA’s analysis revealed that persistent anti-vaping propaganda, often promoted by influential health bodies, is drowning out mounting scientific evidence supporting tobacco harm reduction,” CAPHRA said in a statement. “Countries such as the UK and New Zealand, which have embraced evidence-based approaches, are seeing significant declines in smoking rates, yet much of the world remains gripped by outdated ideology.” 

    “The scale of misinformation about safer nicotine products is staggering and deliberate,” said Clarisse Virgino, CAPHRA Philippine Representative. “It is costing lives by discouraging smokers from switching to less harmful alternatives. Ideological opposition is being prioritized over science, and the public is paying the price.” 

    CAPHRA’s statement said that despite robust evidence showing vaping is substantially less harmful than smoking, global health agencies continue to mislead the public about the risks. CAPHRA executive Coordinator Nancy Loucas criticized the World Health Organization for “ignoring the science and silencing consumer voices,” arguing that this approach perpetuates the deadly smoking epidemic. 

    CAPHRA is calling on governments and health authorities to embrace transparency and evidence, and to recognize harm reduction as a vital tool in the fight against smoking-related disease. “We need pragmatic solutions, not ideological warfare. The stakes are simply too high,” Loucas said. 

     Access the full position paper here. 

  • Cigar Lounge Sues City Over 15-Minute Smoking Limit

    Cigar Lounge Sues City Over 15-Minute Smoking Limit

    Anthony’s Pipe & Cigar Lounge filed a lawsuit against the city of Minneapolis for a law it passed last year that put a 15-minute time limit on cigar smoking in tobacco shops. Representatives of Anthony’s say the law seems targeted, as Anthony’s is the only shop in the city where indoor smoking is allowed.

    According to 2007’s Minnesota Clean Indoor Air Act, customers are permitted to smoke cigars in licensed indoor areas “for the specific purpose of sampling tobacco products.” The state did not define “sampling.” Minnesota is a local authority state in regards to tobacco control, meaning local municipalities are granted the authority to create local ordinances. Last year, Minneapolis decided to define “sampling” as 15 minutes of smoking.

    Hadi Aboumourad, the owner of Anthony’s, and his lawyer, John Sperry, recently filed a lawsuit against the city, hoping it will repeal the ordinance.

    “It’s without any demonstrable health benefit that avoids secondhand smoke exposure to non-smokers, which is a fundamental purpose of the Minnesota Clean Indoor Air Act,” Sperry told Cigar Aficionado. “We see that [the 15-minute sampling window] as a death by a thousand cuts.

    “They can’t outright ban something that the state statute clearly permits and expresses as an exemption. Fifteen minutes of sampling and then prohibiting it after 15 minutes is still a prohibition of sampling, right?”

    Sperry told Cigar Aficionado that despite going into effect last December, the city ordinance has not actually been enforced yet, and the city assured him they would not enforce the ordinance unless a complaint is made. Sperry requested a temporary injunction on the ordinance while the lawsuit plays out, making the ordinance unenforceable while the lawsuit works its way through the court. A hearing is set to decide on the temporary injunction on May 29.