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Tag: Portugal

  • Portugal to Increase Liquid Tax

    Portugal to Increase Liquid Tax

    Photo: alexlmx

    The government of Portugal wants to increase excise taxes on e-liquids in 2024. Nicotine e-liquids will have an excise tax increase of 4 percent, up to €0.351 ($0.373) per milliliter, and nicotine-free e-liquids will be subject to a €0.175/milliliter excise tax.

    Nicotine-containing and nicotine-free e-liquids will also be subject to a minimum tax corresponding to 25 percent and 12.5 percent of the tax applicable to traditional cigarettes, respectively.

    “Increasing the taxation of e-liquids in such a way will make vaping a less attractive option to consume nicotine and prevent low[-income] and middle-income groups from accessing the products,” said World Vapers Alliance Community Manager Alberto Gomez Hernande in a statement.

    “It risks pushing vapers back to smoking and preventing smokers from switching due to affordability reasons. Portugal should follow the steps of countries that are successfully reducing smoking rates by encouraging smokers to switch, such as the United Kingdom and Sweden; instead, Portugal has the highest excise tax rate on vaping products in the EU.”

    “The Portuguese government should follow a risk-based approach to the taxation of e-liquids,” said Hernandez. “Since the risk of vaping is 95 percent lower, taxes should be 95 percent lower too.”

    “If Portugal wants to meet the goals proposed in its National Plan Against Cancer and the European Cancer Plan, it needs to keep alternatives to smoking available and affordable,” Hernandez said. “Sweden is becoming the first smoke-free country in the world this year while Portugal is taking decisions in the opposite direction.”

    In related news, Portugal will delay implementation of the EU Tobacco Directive and proposed legislation by Portuguese government that would ban flavored heated-tobacco products. The ban was supposed to go into effect Oct. 23, 2023, but will be delayed in Portugal until 2024, according to 2Firsts.

  • Portugal Tobacco Use Up

    Portugal Tobacco Use Up

    Credit: Butenkov

    Tobacco consumption in Portugal increased from 48.8 percent in 2017 to 51 percent in 2022, according to The Portugal News and Portugal Resident.

    Alcohol consumption also increased while the use of sedatives decreased.

    The data is from the V National Survey on the Consumption of Psychoactive Substances in the General Population 2022 promoted by the Service of Intervention in Addictive Behaviors and Dependencies.

    The data shows that tobacco is the second most consumed psychoactive substance, below alcohol. About 50 percent of the population 15 years old to 64 years old stated they consumed tobacco at some point in their lives.

    “The prevalence of current consumption (in the last 30 days) is always lower than that recorded in the last year,” the study authors stated. “This is due to the fact that the number of experiences without continuity or abandonment during this period does not exceed the new experiences in the last month.”

  • Portugal Mulls New Rules for Tobacco

    Portugal Mulls New Rules for Tobacco

    Credit: Sezerozger

    New legislation aims to restrict the use and sale of all tobacco products in Portugal, including e-cigarettes and heated tobacco.

    A new bill would ban smoking in outdoor spaces next to public buildings such as schools, colleges and hospitals. It will also tighten control over the sale and marketing of cigarettes and other tobacco products in the country.

    The aim is that by 2025 tobacco products will only be available for purchase in tobacconists, petrol stations and airports, reports EuroNews.

    If enacted, it will no longer be possible to sell tobacco directly or through vending machines in places such as restaurants, bars, concert halls and venues, casinos, fairs and exhibitions. The products will also be prohibited at music festivals.

    Portugal is also complying with the European directive of June 29, 2022, which puts heated tobacco products on an equal footing with other tobacco products.

  • Portugal to Further Restrict Public Smoking

    Portugal to Further Restrict Public Smoking

    Photo: sezerozger

    The government of Portugal plans to ban smoking near schools and hospitals, as well as in covered outdoor seating areas, reports Channels TV. The law would also prohibit smoking in all indoor spaces, including areas currently set aside for smokers in cafes. In addition, venues would not be allowed to sell tobacco products in the covered locations.

    The European Commission intends to decrease tobacco use in the 27-country bloc, which includes Portugal, to less than 5 percent of the population by 2040. 

    “With this law, we hope that young people can live in an environment without tobacco, reduce the incentive to smoke and allow smokers to overcome their addiction,” Health Minister Manuel Pizarro was quoted as saying on May 11.

    “Our objective is to have a generation living without tobacco by 2040… this law is in line with the EU’s anti-tobacco stance, but we wish to go further,” he added.

    In addition to the recently announced measures, the government wants to require manufacturers to print health warnings on new nicotine products, such as e-cigarettes.

    In 2019, 13,500 Portuguese dies from tobacco-related diseases, according to Lisbon.

  • New Smoking Rules in Portugal

    New Smoking Rules in Portugal

    Image: dennisvdwater | Adobe Stock

    New smoking rules come into effect Jan. 1 in Portugal, dictating that “In catering or drinking establishments, including those with rooms or spaces intended for dancing, places where smoking is allowed in areas intended for customers may be set up, provided that these establishments have an area for customers equal to or greater than 100 square meters and a minimum ceiling height of 3 meters,” reports The Portugal News.

    Spaces intended for smokers “can be constituted up to a maximum of 20 percent of the area intended for customers,” according to the law. There must be posted signs relaying maximum capacity for the spaces and “no entry for persons under 18 years of age.”

  • Contemplating the Future

    Contemplating the Future

    Tobacco growers gather in Portugal to debate the many challenges facing their sector.

    By Ivan Genov

    The year 2022 marked a return to in-person meetings for the International Tobacco Growers’ Association (ITGA). After successfully conducting regional conferences in the Dominican Republic for the Americas region and in Zambia for the Africa region in August, the ITGA held its annual general meeting (AGM) in Castelo Branco, Portugal—the organization’s secretariat headquarters.

    The event was attended by tobacco growers’ associations from five continents—Africa, Asia, Europe, South America and North America—together with key industry stakeholders and local hosts. Participants included delegations from Argentina, Brazil, Bulgaria, India, Italy, Malawi, the Philippines, Poland, Portugal, Spain, Switzerland, the United Kingdom, the United States, Zambia and Zimbabwe. The three-day event featured an open session, during which a variety of topics were discussed—the latest leaf production dynamics, a global market overview, regulatory updates and three blocks dedicated to sustainable tobacco growing in Africa, the Americas and Europe. ITGA members shared the latest market information regarding their respective regions and highlighted the most pressing concerns going into the 2023 season. Among the frequently mentioned ones were the growing costs of production, unsatisfactory pricing and the importance of being included in major tobacco forums.

    The Consumption Side

    Euromonitor International provided an in-depth briefing dedicated to the global nicotine market. The market intelligence provider’s head of nicotine and cannabis research, Shane MacGuill, identified broadening of the nicotine universe, regulatory innovation (including sustainability) and the opportunities and threats created by Covid-19 as the key future consumption drivers. In 2021, the pandemic effects sent cigarettes to their best performance in years while the category accounted for 83 percent of the total tobacco value sales. With most regions likely to see both volume and value declines in their cigarette sales, the Middle East, Africa and China are where growth is most likely to come from in the future.

    In the illicit sphere, sales are expected to rebound significantly in the short term as costs of living are growing rapidly in many markets. Currently, the countries with the biggest illicit penetration are Ecuador, Peru and Uganda. In emerging products, heated tobacco is seen as the leading reduced-risk format while nicotine pouches show significant potential, mainly driven by sales in the U.S., but starting from a lower base. The importance of sustainability is another key driver in the tobacco and nicotine universe. The growing focus on cultivation and its environmental impact; supply chain emissions, widely accepted as environmentally damaging; and product waste, which is now in part tackled by the EU Directive on Single-Use Plastics, are among the key issues that will shape the regulatory framework. Finally, Euromonitor flagged the potential of legal cannabis, which is forecasted to reach nearly $100 billion in sales by 2026, according to company estimates, with focus on the U.S. and Germany as key examples of how the newly emerging industry could take shape.

    The Production Side

    After a sharp drop in 2020, 2021 marked a slight rebound in production for the biggest tobacco variety, flue-cured Virginia (FCV). This was largely driven by production increases in the U.S., Brazil and Zimbabwe, coupled with good weather conditions and revival of trade after the initial waves of Covid-19. In 2022, further production growth was registered, but this was primarily triggered by a 110 million kg increase in China. The biggest producer of FCV, excluding China, is Brazil, where the season concluded with 60 million kg of FCV less than the year before, with production costs up nearly 30 percent. Projections for 2023 suggest that China will keep the 2022 production levels while Brazil will also increase its FCV outputs, which could lead to additional growth on a global level. Pricing is showing an upward trend in some of the biggest markets for FCV, but the rapid growth in production costs is the biggest concern flagged by most ITGA member associations. As inflation and unstable supply chains are likely to continue shaping trade in 2023, this issue is likely to persist in the medium-term to long-term.

    The trajectory for burley tobacco is downward. Production levels have been consistently declining in the past three years to four years. In contrast, for 2023, leading merchants expect notable production growth for burley in Africa, bringing the global quantities closer to the 500 million kg mark. Whether this forecast will materialize remains an open question. A market of particular importance for burley, Malawi experienced a difficult season. Sales were just under 70 million kg, down from 104 million kg the year before, representing a more than 30 percent drop on a yearly basis. The average price of $2.03 meant that total proceeds for the sector were only 7.7 percent down in comparison. The Tobacco Association of Malawi has indicated that 2021 and then 2022 have recorded a high increase in input prices because of Covid-19-related logistical developments and the impact of the Ukraine crisis, with fertilizer prices almost doubling. Fertilizers will be a big factor going into 2023 as well. In the U.S., another important producer of burley, growers indicated that interest in the variety is rapidly decreasing. Although some have diversified into other tobacco varieties, such as dark air-cured for the growing popularity of smokeless products, next season’s production is likely to register a double-digit year-on-year decline.

    Focus on Other Markets

    The AGM also shed light on some of the smaller markets that do not often enter the spotlight. For example, in the Philippines, production currently stands at 46 million kg, with an expected rise of 3 million kg going into the 2023 season. During the current crop, at least 4 million kg were lost due to rains. In Italy, the season was particularly difficult, with the rising cost of gas, fertilizer and power impacting production. A significant number of farmers took a sabbatical year while climate was hot and dry with several thunderstorms impacting production. The situation in the wider European region is also difficult. In the span of a decade, production went down drastically, with little help for growers on a regional level. Recently, the war in Ukraine has seriously been affecting pricing and availability of fertilizers. Shisha has arisen as a new opportunity for EU growers, especially in Poland.

    Special attention was also paid to Ukraine, where the war has a significant impact on the larger agricultural environment. According to U.N. data, a significant number of markets depend heavily on agricultural commodities from Russia and Ukraine while the wheat dependence of many African and other least developed markets is also noteworthy. In addition to the fertilizer shortage and availability issues, big tobacco manufacturers have large exposures of their cigarettes and heated-tobacco portfolios to Russia and Ukraine, making supply chain complications even more pressing.

    Election of New ITGA President and Future Objectives

    Jose Javier Aranda (Photo: ITGA)

    Among the important outcomes of the ITGA’s 2022 AGM was the election of Jose Javier Aranda as the new association president. Aranda belongs to a family of farmers with roots and traditions in Argentina’s Lerma Valley. His ancestors were among the first Virginia tobacco producers in Salta Province. Currently, he serves as the first member of the Camara del Tabaco de Salta, a founding organization of the ITGA and secretary of the Cooperativa de Productores Tabacaleros de Salta. His leadership experiences are built on 16 years of action in the representative entities of the Salta producers.

    Going into next year, ITGA members highlighted the importance of maintaining and strengthening communications with already scheduled regional meetings in Africa, America, Asia and Europe. The ability to sit in all meetings where the future of the sector is being decided, including meetings hosted by the World Health Organization, is among the goals of the new president. The multiple challenges facing the most vulnerable part of the supply chain necessitates the close cooperation between associations and major industry stakeholders to continue, so the sustainable future of millions of people taking part in tobacco growing can be ensured. Finally, growers agreed that tobacco should be grown in a sustainable way, respecting the environment and making sure all processes involved in production are fully compliant.

    Ivan Genov is ITGA’s manager of tobacco industry analysis.
  • Smuggling Ring in Spain and Portugal Disrupted

    Smuggling Ring in Spain and Portugal Disrupted

    Photo: Europol

    Spanish and Portuguese law enforcement agencies have dismantled a criminal network involved in cross-border tobacco smuggling, according to Europol.

    On Feb. 16, more than 100 officers simultaneously raided addresses on either side of the border, detaining eight suspects.

    The officers seized 2 tons of cut tobacco and tobacco strips, more than 10,000 counterfeit cigarettes and tobacco cutting and drying equipment. They also recovered €37,800 ($42,778.46) in cash.

    Property searches were carried out in the province of Sevilla (Spain) and in the cities of Coimbra, Lisbon, Leiria and Aveiro (Portugal).

    The criminals are suspected of having illegally imported from Spain to Portugal large quantities of leaf tobacco and strips, destined to produce counterfeit cigarettes. This criminal network had tobacco storage and production facilities scattered across both countries.

    Law enforcement believes these criminals have smuggled over 7 tons of tobacco products from Spain to Portugal in 2021 alone.

    The revenue loss generated by this illegal activity is estimated at over €163,000 in Portugal.