Tag: Cambodia

  • WHO Wants Cambodia to Raise Tobacco Taxes

    WHO Wants Cambodia to Raise Tobacco Taxes

    Image: VDZ3 Media

    Ada Moadsiri, World Health Organization representative in Cambodia, called for an increase in the special tax on cigarettes in the kingdom, reports the Khmer Times. According to Moadsiri, the current tax is not enough to discourage cigarette use or to raise enough revenues to offset the cost in terms of healthcare and economic output caused by tobacco-related illnesses.

    Moadsiri said, at the Youth Forum on Tobacco Tax Measures event, that an effective increase in the special tax would require stakeholders to keep cigarette prices higher and make it more difficult for Cambodians to start smoking.

    “We see that this delusion of the tobacco industry that claims that raising taxes on cigarettes will lead to tax evasion is fake, and I think the tobacco industry uses these fantasies for the sole purpose of preventing or delaying the special tax on cigarettes,” Moadsiri said.

  • Industry Urges Crackdown on Illicits

    Industry Urges Crackdown on Illicits

    The tobacco industry is urging Cambodia to crack down on the illicit trade in cigarettes, reports The Khmer Times.

    A recent study by Kantar International found that 18.5 of cigarettes on the market failed to display the required tax stamps, causing the government to miss out on up to $10 million in revenues each year.

    Vernon Little, president of the Association of Tobacco Industry in Cambodia (ATIC), which represents several local and international tobacco manufacturers, said better tobacco tax stamp compliance would not also boost government income, but also contribute to a level playing field for the industry.

    “We request the Royal Government of Cambodia to take more action strongly against those illicit [products],” said Little.

  • Cambodia urged to raise tobacco taxes

    Cambodia urged to raise tobacco taxes

    Image: laurent dambies

    The World Health Organization and the Cambodia Movement for Health Organization have urged the Cambodian government to increase tobacco taxes, reports the Khmer Times.

    Cambodia levies comparatively low taxes on tobacco products. Domestically produced cigarettes attract a duty of 25 percent, and imported cigarettes are taxed at a rate of 31 percent. According to the Ministry of Economy and Finance, Cambodian tobacco product taxes are 20 percent lower than in other ASEAN countries.

    According to the WHO, increasing tobacco taxes is the single most effective way of reducing tobacco use and associated health problems. A recent WHO study found that raising the price of a pack of cigarettes by KHR500 ($0.12) now would not only deter at least 30,000 people from smoking next year but also prevent 10,000 deaths in the next 10 years and generate tax revenues of approximately $53 million per year.

    Between 2011 and 2021, the number of smokers in Cambodia increased from 1.47 million to 1.63 million, according to the Public Health Centre.

  • Cambodia: Police Shut Down Illegal Tobacco Factory

    Cambodia: Police Shut Down Illegal Tobacco Factory

    Image: Derek Brumby

    Tboung Khmum police shut down an illegal tobacco factory producing counterfeit Esse brand cigarettes, in collaboration with Cambodia’s provincial military police and mobile customs officers, reports the Khmer Times. The factory was located in the Memot District, near the border with Vietnam.

    The factory was allegedly owned by a Cambodian tycoon, according to Tboung Khmum Provincial Economic Police Officer Major Long Sambath. Police were investigating and monitoring the factory for a month before the raid, said Sambath.

    The alleged owner was not present during the raid and has not been located, though his identity is known.

    “This factory has operated without any authorization from relevant provincial authorities. We discovered recently that it was producing unlicensed, counterfeit Esse cigarettes,” Sambath said.

    “The authorities have already cracked down on the factory, and we will take legal action to locate and prosecute the owner of the factory,” he said.

    Several tons of counterfeit cigarettes were seized along with other tobacco-related materials, including new cigarette manufacturing equipment.

  • Cambodia to Implement Tobacco VAT

    Cambodia to Implement Tobacco VAT

    Photo: mehaniq41

    Companies importing and distributing cigarettes in Cambodia will have to apply value-added tax to these products effective Aug. 1, reports  The Phnom Penh Post.

    The procedure mirrors the application of VAT on other taxed commodities, with a flat rate of 10 percent on all cigarette supplies in Cambodia.

    VAT paid at the point of importation or domestic purchase may be claimed as an income tax credit, deductible with output tax, according to the Ministry of Economy and Finance.

    Furthermore, enterprises importing cigarettes for export purposes will be permitted to pay a one-off value-added fee at the point of importation.

    The Cambodia Movement for Health (CMH) lauded the Ministry of Economy’s guidance as a clear indicator of the government’s commitment to combat the health risks associated with cigarettes and tobacco products.

    Nonetheless, CMH Executive Director Mom Kong urged the government to extend the VAT to include non-cigarette tobacco products, as well.  

    Citing research by the World Health Organization, Kong stated that imposing an additional tax of KHR500 ($0.125) per pack of cigarettes could increase market prices by 15 percent. This, in turn, could potentially reduce the number of smokers by 30,000 in the next year, and prevent 10,000 premature deaths over the next decade or so.

  • Stepping Up

    Stepping Up

    Zilong presented its Marskiss heat-not-burn product at TabExpo in Bologna.
    (Photo: Taco Tuinstra)

    Newcomer Marskiss aims to offer heated-tobacco consumers an improved user experience.

    By Stefanie Rossel

    Since their introduction to the market less than a decade ago, sales of heated-tobacco products (HTPs) have grown remarkably. Market research companies are outdoing each other in their forecasts for the category. Reportlinker, for example, valued the global HTP market at $22.36 billion in 2022 and expects it to reach $25.89 billion this year. The market is anticipated to increase at a compound annual growth rate of 15.9 percent to reach $72.86 billion by 2030. Euromonitor expects HTPs to cement their place at the head of the vapor growth category, with significant growth in Japan, South Korea, Russia, Italy, Germany, Poland, the U.S. and Ukraine.

    The global HTP market is dominated by four large players—Philip Morris International, which pioneered the category with its IQOS device; BAT, which competes with its Glo brand; Japan Tobacco International, known for its Ploom product; and KT&G with its Lil series.

    Inspired by the success in the segment of their larger counterparts, many smaller manufacturers have also entered the market. One of them is Singapore-based business Zilong. Driven by its desire to design a safe and good-flavored HTP, the company spent more than 10 years developing Marskiss before debuting the product in 2021 at the WT Middle East exhibition in Dubai and, more recently, showcasing it at TabExpo 2023 in Bologna.

    To understand how Marskiss differs from other HTPs, it’s helpful to examine the company’s background. Zilong was founded by Zhan Baoming, who has worked China’s tobacco industry since 1991 and also owns a cigarette flavoring company. Zhan has been in tobacco harm reduction since 2000. The knowledge he acquired about tar reduction and aroma enhancement laid a solid foundation for the creation of Zilong’s HTP product, according to Zhan. “My goal is to make a good HTP product that is low in tar while satisfying in tobacco aroma,” he says.

    One Marskiss stick provides users with the same level of satisfaction as two or three sticks of other HTP brands, according to Zilong. (Photo: Taco Tuinstra)

    Longer Lasting Aroma

    The nature and treatment of the tobacco makes all the difference, explains Zhan. “Our product uses high-quality natural tobacco as a carrier for our ‘aroma precursors,’ which is a featured technology of our product. At present, most HTP products on the market use food liquid fragrances to produce tobacco aroma. However, the resistance of food liquid fragrances to high temperature is weak, and the fragrances will be denatured and volatilized quickly with the increase of temperature, resulting in a shorter retention time of tobacco aroma. How to prolong the retention time of tobacco aroma? After years of research, our technical team found that natural tobacco and aromatic plants can be processed in a special procedure to obtain a comprehensive aroma, which produces fragrances of more lasting retention. This is what we call ‘the aroma precursor.’ The aroma precursor has much less impurity and more full-bodied, consistent and lasting tobacco flavor.”

    According to Zhan, Marskiss sticks feature more advanced moisturizing technology than other HTPs, which makes their aerosols purer and fresher. Among other benefits, this prevents users from experiencing a dry mouth, which is a common problem associated with HTPs. To keep the moisturized tobacco fresh, Zilong has developed a special stick construction that includes a storage chamber for the tobacco and a more efficient filtering technique.

    “The paper tube of our product has two layers—an outer layer and an inner layer—and we choose natural porous material as the inner layer coating to build a storage environment similar to a ceramic pot, which can capture the moisture from the tobacco section and keep it inside the tube so that the tobacco section will not become dry after the package has been opened for a period of time,” says Zhan.

    The patented chamber lets the tobacco age naturally with storage, according to Zilong, which will result in a better taste. What’s more, the filter section of each Marskiss stick features a ball array filtration system so that the aerosol passes through a curved path formed between the gap in the ball array. “After layer upon layer [of] filtration, the aerosol becomes fresher and purer,” explains Zhan.

    Marskiss sticks feature advanced moisturizing technology that keeps aerosols pure and fresh. Among other benefits, this prevents users from experiencing dry mouth. (Image: Zilong)

    More Satisfying

    Zilong claims its technology enables one Marskiss stick to provide users with the same level of satisfaction as two or three sticks of other HTP brands. By using lower, more balanced levels of nicotine salts, Marskiss also helps users avoid headaches associated with excessive nicotine salts.

    Marskiss tobacco sticks come in five flavors and are matched by a device with a pre-heating time of 20 seconds that allows for 18 puffs or five minutes of use, which is about four puffs more than other brands. Initially, Zilong intends to launch Marskiss with blade heating technology. Down the road, the device will also be available with pin heating technology. “It is light-weight, slim and slick, and portable, and more importantly, it is a perfect match with our stick product that can heat the sticks to give the best experiences to users,” says Zhan.

    In combination with the sticks’ patented filtering technology, the device reduces throat irritation and reduced dust to lungs, according to Zilong.

    The company has invested €15 million ($16.25 million) in Marskiss so far. In preparation for launch, Zilong has started identifying markets and partners. According to Zhan, the product has performed well in consumer trials. “We have done several rounds of consumer testing in different markets and basically, we get pretty positive feedback from users, including distinctive and lasting tobacco aroma, no bad smell in mouth and room so that people around them do not object them from using our product, and no headache or coughing after using,” he says.

    “We hope to tackle the pain points of the smokers, and we are committed to making the best [heat-not-burn] product,” says Zhan. “Please stay tuned for updates.”

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
  • Cambodia: New Tax Stamp Introduced

    Cambodia: New Tax Stamp Introduced

    Image: Tobacco Reporter archive

    Cambodia has revealed the features of the new stamp tax to vendors in prime locations across the country, reports Khmer Times. According to the General Department of Taxation (GDT) in a working group with the General Department of Customs and Excises (GDCE), the dissemination and presentation of the obligations and features of the new stamp tax have been conducted in 1,305 places in five different areas.

    Tobacco products produced in Cambodia need to be labeled with a tax stamp issued by the GDT, and products imported from other countries need to be labeled with a tax stamp issued by the GDCE, said Ming Ban Kosal, the GDT’s deputy director and co-chief of the working group.

    “Both stamp tax for domestically produced and imported tobacco products were produced using a kind of high-quality paper with QR code and safety features that cannot be copied or fraudulently duplicated,” said Kosal.

  • Tobacco Use Down in Cambodia

    Tobacco Use Down in Cambodia

    Image: Zeybart

    The youth cigarette smoking rate in Cambodia dropped from 32 percent in 2014 to 28 percent in 2022, reports the Phnom Penh Post, citing new Ministry of Health research. Despite the research showing a 4 percent decrease in cigarette smokers, the overall number of cigarette smokers has not decreased because the population grows annually, according to Mom Kong, Cambodia Movement for Health executive director.

    “I think that the most effective measure we can take would be to raise taxes on the tobacco products so that the rate is similar to our neighboring countries in order to reduce the number of Cambodian deaths from tobacco smoking,” Kong stated.

    “We hail what the government has done so far, but the government should strengthen the implementation of the laws more than this,” said Lim Sophoan, project coordinator of the Cambodian Coalition to Fight Infectious Diseases. “That’s good. In addition, we also want to tighten laws and continue to educate people from relevant ministries.”

  • Cambodia Burns E-Cigarettes

    Cambodia Burns E-Cigarettes

    Image: Jag_cz | Adobe Stock

    Cambodia’s Consumer Protection and Fraud Repression General Department of Ministry of Commerce, in cooperation with the National Authority for Combating Drugs, burned 288 boxes of UOLO e-cigarettes, equivalent to 7,200 packs, at a landfill in Phnom Penh’s Dangkor district, reports the Khmer Times.

    Heng Maly, director of the Consumer Protection and Fraud Repression General Department, said, “The e-cigarettes were confiscated on Nov. 3, 2022, from a warehouse, pursuant to the order to seize and destroy by the prosecutor of the Phnom Penh Municipal Court.”

    The e-cigarettes were discovered after an investigation by the General Department of CCF, which confiscated 3,600 packs of UOLO e-cigarettes, 1,800 e-cigarette machines and 1,800 e-cigarette mouthpieces.

  • Vietnam Sets Import Quotas for Cambodian Tobacco

    Vietnam Sets Import Quotas for Cambodian Tobacco

    Photo: Taco Tuinstra

    Cambodia may export up to 3,000 tons of leaf tobacco to Vietnam under preferential import tax rates this year, reports The Khmer Times, citing Vietnam’s Ministry of Industry and Trade (MoiT).

    In order to enjoy the preferential import tax rate, the products must be accompanied by a Certificate of Origin issued by the Cambodian Ministry of Trade or another authorized agency, and their customs clearance procedures must be conducted at designated border crossings.

    For dried tobacco leaves, importers must show a license to import raw tobacco under tariff quotas issued by the MoIT.

    In September last year, Vietnam announced that it would impose a zero percent tax rate on 31 commodities imported from Cambodia such as live poultry, poultry meat and by-products, lemons and rice.

    The list also includes finished pork products and unprocessed tobacco leaves.