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Tag: illicit tobacco

  • Caloocan City Adopts Anti-Illicit Tobacco Ordinance

    Caloocan City Adopts Anti-Illicit Tobacco Ordinance

    Caloocan City, Philippines, enacted City Ordinance No. 1193, Series of 2026—the Anti-Illicit Tobacco Trade Ordinance—becoming the first local government unit in Metro Manila to formally prohibit the manufacture, distribution, and sale of tobacco products that do not comply with national regulations. Mayor Dale Gonzalo Malapitan said the measure targets cigarettes lacking Internal Revenue stamps, graphic health warnings, or those sold below government-mandated pricing, with penalties that include fines, business permit suspension or revocation, and imprisonment of up to one year. The city’s Business Permits and Licensing Office has been directed to enforce compliance among retailers.

    Orlando Oxales, convenor of CitizenWatch Philippines, called the move “strong and timely,” noting similar local actions this year in Mariveles, Bataan, and ongoing discussions in Davao City aimed at strengthening anti-illicit trade enforcement at the LGU level.

  • Dutch Authorities Seizing Large Quantities of Illicit Products

    Dutch Authorities Seizing Large Quantities of Illicit Products

    Dutch authorities seized large volumes of illicit nicotine products in a series of enforcement actions over the last two weeks, including nearly 220,000 illegal vapes, more than 50,000 boxes of banned nicotine pouches, and 23 million illicit cigarettes. The total value of the items would roughly be in the €14–20 million range.

    The seizures, carried out by the NVWA and FIOD, targeted storage sites and shipping containers across Zuid-Holland and Noord-Brabant, with officials noting the products—many of them flavored—violated national regulations. Eight suspects have been arrested in connection with the cigarette seizures, with authorities estimating potential tax losses of nearly €9 million.

  • Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s illicit cigarette market is approaching a “critical stage,” with illegal products now accounting for roughly 50% of total consumption, according to industry representatives. Philip Morris International and Japan Tobacco International executives said the country’s illicit rate is among the highest in the region, far exceeding levels in markets such as Singapore and Thailand, and warned that widespread availability has normalized illegal purchasing among consumers.

    Industry speakers linked the surge to a sharp excise tax increase in 2015, which widened the price gap between legal and illicit products and drove illegal market share to as high as 63% at its peak. Officials and stakeholders emphasized that addressing the issue will require a coordinated approach combining stronger enforcement, policy adjustments and greater public cooperation, as smuggling networks continue to adapt and exploit regulatory gaps.

  • PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    Philip Morris International warned that the continuing conflict in the Middle East could disrupt supply chains and drive a surge in illicit cigarette trade across Southeast Asia. The company said past disruptions, such as during the COVID-19 pandemic, led to sharp increases in illegal market share, with illicit trade in the Philippines rising from 6% to 17%. PMI estimates governments in the ASEAN region are already losing around $4 billion annually in cigarette excise revenue, with an additional $2 billion lost from illegal vaping products.

    PMI called for stronger regional coordination to address the issue, including real-time sharing of customs data among ASEAN countries to better track illicit flows. The company said supply constraints and regulatory gaps create opportunities for illegal operators, and urged policymakers to adopt more unified enforcement strategies as the Philippines chairs ASEAN this year.

  • NSW Ups Penalties for Landlords With Tenants Selling Illicit Products

    NSW Ups Penalties for Landlords With Tenants Selling Illicit Products

    New South Wales, Australia, passed legislation introducing criminal penalties for landlords who knowingly allow tenants to sell illicit tobacco or illegal vapes, as part of a broader crackdown on the black market. Under the new law, offenders face up to 12 months’ imprisonment and fines of up to A$165,000 ($118,800). The measure builds on recent reforms, including tougher penalties for possession and sale, expanded closure powers for non-compliant premises, and new enforcement tools targeting false licensing and interference with seizures.

    The government also increased enforcement capacity, adding 30 inspectors to support statewide operations alongside police, with more than 220 closure orders issued since late 2025. Officials say the reforms are designed to address evolving tactics, including online and QR code-based sales, and to strengthen accountability across the supply chain to curb illicit tobacco and vape distribution.

  • PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    Pakistan’s Federal Minister for Commerce Jam Kamal Khan met with a delegation from Philip Morris International to discuss challenges in the country’s tobacco sector, with a focus on illicit trade, regulatory gaps, and export potential. The delegation highlighted that an estimated 45–47 billion untaxed cigarettes are sold annually, contributing to revenue losses of around Rs350 billion ($1.3 billion) and creating competitive pressure on the formal sector. Discussions also addressed weaknesses in supply chain oversight, including tobacco leaf procurement and limited traceability, which enable informal manufacturing.

    Officials emphasized the need for stronger, coordinated enforcement across federal and provincial authorities, noting that existing regulations are often inconsistently applied. The role of the Pakistan Tobacco Board and broader policy challenges linked to IMF-related trade reforms were also reviewed, with both sides agreeing to continue collaboration on measures to improve compliance, strengthen monitoring systems, and support formal sector growth.

  • Survey Says Pakistan’s Tobacco Control Not Working

    Survey Says Pakistan’s Tobacco Control Not Working

    A nationwide survey in Pakistan found widespread non-compliance in the cigarette market nearly four years after the introduction of the Track and Trace System. Conducted across 1,520 retail outlets in 19 districts, the study found that only 22 of the 477 identified brands in circulation were consistently compliant, with 455 failing to meet at least one regulatory requirement, including missing tax stamps, health warnings, or printed retail prices.

    The survey also found that 392 brands were being sold below the government’s minimum price of PKR 162.25 ($0.58) per pack, with some as low as PKR 50 ($0.18), indicating a significant presence of untaxed and non-compliant products. Both smuggled and locally produced duty-unpaid cigarettes were widely available, with higher non-compliance rates in rural areas. The findings point to ongoing challenges in enforcement, monitoring, and market control, despite the formal rollout of digital tracking systems.

  • Vietnam Eyes Illicit Market as it Introduces Mixed Tobacco Tax  

    Vietnam Eyes Illicit Market as it Introduces Mixed Tobacco Tax  

    Vietnam’s planned introduction of a mixed tobacco excise tax from 2027 is expected to combine a 75% ad valorem rate with a gradually increasing specific tax, adding 2,000 VND ($0.08) per pack annually and reaching 10,000 VND ($0.38) by 2031. The policy aims to reduce smoking rates, increase the tax share of retail prices to nearly 60%, and boost excise revenue, which is projected to more than double to 39.1 trillion VND ($1.5 billion) by 2030. However, officials and experts warn that higher taxes could widen price gaps and push some consumers toward illicit tobacco, which already accounts for an estimated 20–22% of the market and causes annual tax losses of up to 6 trillion VND ($228 million).

    Authorities say stronger enforcement will be critical to support the policy, including higher penalties for smuggling and retail violations, expanded oversight of e-commerce sales, and coordinated action among customs, police, and border forces. Recent enforcement efforts have resulted in over 23 million packs of illicit cigarettes seized and more than 1,600 violations recorded, though officials note that trafficking remains widespread and increasingly sophisticated across multiple regions.

  • JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    “Cost pressure means consumers often cannot afford to think about safety,” was the message from Joseph Anak Janting, president of Malaysia’s Dayak Transformation Association (TRADA). The comment came as officials examined the nation’s thriving illicit tobacco market, not just its financial impact, but also the unknown ingredients being ingested from unregulated products.

    Japan Tobacco International (JTI) Malaysia released data today (April 30) that shows 57% of the Malaysian tobacco market is illicit, a number that climbs near 80% in regions such as Sabah and Sarawak, where the market is driven by a significant price gap. Legal cigarettes cost over RM20 ($5) per pack compared to illicit products that sell for as little as RM4 to RM8 ($1 to $2), following recent excise tax increases and retail restrictions. In Sarawak, where the average monthly household income is RM5,504 ($1,376) and rural incomes are significantly lower, Janting said the price gap is not a minor consideration; it is the difference between affording cigarettes and not affording them.

    JTI identified three primary categories of illicit products: counterfeit tax-stamp cigarettes, which have doubled to 16% market share since 2023; smuggled “whites” lacking tax stamps; and illegally imported kretek cigarettes. Officials said expansion of the illicit trade is contributing to an estimated RM4 billion in annual lost tax revenue, with enforcement challenges compounded by cross-border smuggling and counterfeit production networks.

  • Cyprus Retailers Warn Tax Hikes Could Boost Illicit Tobacco Trade

    Cyprus Retailers Warn Tax Hikes Could Boost Illicit Tobacco Trade

    Kiosk owners in Cyprus are warning that proposed tobacco tax increases could drive consumers toward illegal markets, particularly via the island’s northern region, where price disparities already influence purchasing behavior. Industry estimates suggest that about 13% of cigarette consumption and 53% of rolling tobacco consumption currently comes from the north, with further increases expected if taxes rise.

    Retailers say planned EU-driven excise adjustments could push cigarette prices from around €4.50–€5 to as high as €8–€8.50 per pack, potentially accelerating the shift to untaxed products. The sector estimates illicit trade already costs the government more than €50 million annually and is calling for policy flexibility, stronger enforcement and phased implementation to mitigate further losses.