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  • A Generation Apart

    A Generation Apart

    The UK’s Gamble on a Tobacco-Free Future

    UK legislators believe splitting current smokers and future potential smokers will allow its generational ban to avoid many of the pitfalls that have plagued schemes aimed at achieving the same ends found elsewhere in the world.

    This is the first major market to enact such a widespread ban.

    The ban prohibits younger consumers from ever taking up use of tobacco products (including heated tobacco) while still permitting non-tobacco nicotine products such as electronic nicotine devices (ENDs) and nicotine pouches to be available for them. Adult consumers will be unaffected by the ban, which will only apply to those born on or after 1st January, 2009. Such an approach, incidentally, does not affect the one group of people that could demonstrate anger over the decision by maybe voting against the government in the upcoming elections.

    Such divisions in product access will prevent the UK from experiencing the rise in black market activity seen in countries that have taken different approaches, the UK government hopes. It is worth noting that the UK already has a fairly substantial black market brought about by the attempted avoidance of already high duties on tobacco.

    But approaches taken by other countries have resulted in worse outcomes. For example, Australia has put strict limits on vaping products while significantly increasing taxes on conventional tobacco products, leading to enough black-market tobacco appetite to fuel an ongoing low-level conflict between rival suppliers.

    The country is meant to raise taxes on cigarettes again in March plus again in September. The Australian government had previously been adamant that it would not make changes to its tobacco tax plan. However, it recently seemingly grudgingly admitted it would consider such a policy move.

    Australia’s finance minister, Katy Gallagher, said there was no single solution and that the government kept strategies to cut illicit tobacco trade under review – including possibly cutting the excise rate.

    If Australia were to choose to take such a climb down, it would mirror previous broad-stroke policy reversals. Bhutan elected to rescind an initiative to completely ban the sale and production of tobacco products after about a decade. This was due to rampant black-market importation of tobacco products from neighboring countries.

    Australia does not have bordering neighbors. But this has not proven detrimental to smuggling efforts, with a rise in tobacco-related activity resulting in several ongoing conflicts between criminal enterprises that have led to numerous arson attacks, shootings, and other escalations. 

    The issue could be exacerbated by a general lack of alternative products for smokers outside the licensed cessation pathway. Both heated tobacco and pouches are effectively banned in the country, being subject to a prescription, but no products have been approved as therapeutic goods suitable for use as a cessation aid as required to be prescribed.

    Vaping products are not banned in Australia. But the limitations placed on them – in particular, pharmacy-only sales – render them significantly less attractive as an alternative to current smokers.

    This is another issue that the UK is looking to avoid. All such products will remain viable for adult consumers in the UK, while only heated tobacco would be prohibited for those born after the cut-off date, as current legislation stands. This, the UK government argues, will leave vaping products open as a potential cessation tool and less harmful alternative.

    The UK also hopes that increases to enforcement budgets will provide enough of an edge to overcome any potential future increases in illicit tobacco activity. However, the example of Australia suggests that UK plans may not be enough. The government highlighted an additional £30m per year to be committed to enforcement agencies.

    But Australia is reported to have committed an additional AUD $350m (£183.5m) to enforcement over the past two years. Despite this, it has still seen a significant increase in illicit cigarettes. Border authorities reported an increase in conventional cigarette seizures from 606 million in 2019-2020 to 2.5 billion in 2024-2025.

    This, of course, could be said to be an indicator of the money paying off, with significantly more illicit products being taken off the Australian market. However, anecdotal evidence appears to suggest that it is a symptom of even greater imports rather than a higher proportion of products
    being seized.

    One more possible example to contemplate is the Maldives. The Indian Ocean island nation became the first country in the world to successfully enact a generational ban when a ban on tobacco products for anyone born after 1st January, 2007 went into effect in November 2025.

    Thus far, it is too early to assess the impact of the ban’s implementation. Significant issues are unlikely to arise until it can be seen whether much residual demand for tobacco products remains for those impacted by the Maldives generational ban. But it is impressive that the ban even progressed as far as it had. The other attempts that had previously got closest to coming into force – in Malaysia and New Zealand – both failed for non-tobacco control reasons.

    In Malaysia, the ban was withdrawn before it could be passed over concerns it would fall short of future constitutional challenges. In New Zealand, the measure was passed by the New Zealand Labor Party before then being repealed by a conservative coalition that took power in national elections.

    The coalition said it had chosen to repeal the ban as part of its coalition agreement because it wanted to take another approach to protecting public health that required the increased revenue derived from continued legal sales of tobacco products.

    Several Kiwi public health organizations found this argument dubious. Nonetheless, the coalition followed through and made several amendments to the recently passed regulations – including rescinding the generational ban.

    There is still a chance the UK experiences a similar change in direction. The situation is similar to that in New Zealand in that both countries had plans to prohibit the uptake of tobacco products amongst youth, but to leave alternative nicotine products alone. The one key difference – though – is that the generational ban was originally proposed by the UK Conservative Party when it was in government before national elections gave power to the UK Labour Party, which announced its intentions of passing a similar (some would say identical) law.

    That key difference means it is more than likely that the UK generational ban will continue regardless of any possible change in government. Whether it falls to unexpected, continued demand for tobacco products once the ban begins to affect UK consumers now becomes the main question.

    This article was provided by Tamarind Intelligence.

  • Taxes Increasing Gap Between Regulatory Intentions and Market Realities

    Taxes Increasing Gap Between Regulatory Intentions and Market Realities

    At the Global Tobacco and Nicotine Forum (GTNF) in Brussels, a panel moderated by Tim Phillips, Managing Director of Tamarind Intelligence, explored how taxation and tariffs are shaping the future of nicotine products in a rapidly evolving market. Speakers included Christa Pelsers (BAT), Stefano Santi (Philip Morris International), and Maria Angelova (Socotab Frana SA).

    In “It’s All About Tax — The Complex World of Excise and Tariffs,” Phillips opened by stressing that “the next few years are going to be vitally important,” as novel products—from vapes to nicotine pouches—continue to disrupt markets. “We’re seeing massive problems around illicit trade and tax collection,” he said, noting that in some countries, “more than half of the market may already be illicit.” The result, he warned, is a growing gap between regulatory intentions and market realities.

    Pelsers highlighted the speed of innovation and the challenges it creates for regulators. “For years, there was no innovation in tobacco, and now we have an explosion of new products—governments are still trying to catch up,” she said. Pelsers argued that taxation must be based on science, not politics, and criticized the European Commission’s fragmented approach: “The Commission is proposing that every member state can adjust its own rates. That makes things even more complex. We need harmonization to ensure fairness and functionality in the single market.”

    She also warned of geopolitical shifts impacting trade. “With U.S. tariffs, China is redirecting exports elsewhere. The EU’s response has been slow. The next few years will reshape who we trust as trading partners,” she said. “And if tax rates are set too high, it will be detrimental to innovation.”

    Santi emphasized that excise tax policy should not only collect revenue but also guide consumers toward less harmful products. “Ten years ago, my job was complexity five; now it’s fifty,” he said. “We need to balance taxation in a way that shifts the market without driving consumers to the black market.” He endorsed differentiated tax levels for different product types, saying, “If you raise taxes too fast, consumers will find cheaper, often illicit alternatives.”

    Santi called for leveraging member state experience to modernize EU tax policy and harmonize definitions. “The directive is a good start, but it’s lagging behind. Treating all products the same is a recipe for failure. Europe needs to protect its economic and manufacturing footprint.”

    Angelova added a perspective from the leaf tobacco sector, calling taxation “one of the quiet architects of humanity.” She warned that poorly designed taxes could devastate rural livelihoods. “Tobacco is an agricultural product that supports families. Nowhere else in the world is raw tobacco subject to excise tax,” she said. “Making local tobacco less affordable than imported tobacco doesn’t help anyone.”

    Angelova stressed the importance of practical implementation: “It’s not just about what we tax—it’s about how. Details make the difference. Track and trace systems are vital to ensure transparency and prevent unfair competition.”

    She concluded by urging policymakers to proceed with caution: “We’re trying to solve too many problems at once. We need to start addressing them one by one. Europe still has many families who rely on tobacco farming. Consumers won’t forget how we handle this.”

    The panel collectively underscored that while excise and tariff reforms are inevitable, their success will depend on nuance, balance, and genuine collaboration with industry to avoid unintended economic and public health consequences.