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Tag: tax

  • Bangladesh Risks $328M From Cigarette Pricing Structure

    Bangladesh Risks $328M From Cigarette Pricing Structure

    Bangladesh could forgo more than Tk 4,000 crore ($328 million) in annual tobacco tax revenue in fiscal year 2026-27 because cigarette prices set in the proposed budget do not reflect actual retail market prices, according to the Power and Participation Research Center (PPRC). The think tank estimates that the government will lose approximately Tk 4,062 crore ($333 million) in revenue because low- and medium-tier cigarettes are sold at prices higher than the official minimum retail prices used for tax calculations.

    Under the proposed budget, the minimum retail price is set at Tk 62 ($0.50) per 10 sticks for low-tier cigarettes and Tk 92 ($0.75) for medium-tier products, while retailers commonly sell individual sticks at prices that translate to pack values of Tk 70 and Tk 100 ($0.57 and $0.81), respectively. Based on sales of 6,118 crore low- and medium-tier cigarette sticks in FY25, PPRC argues that the untaxed gap between official and actual prices represents a significant missed revenue opportunity.

    The organization said total tobacco tax collections have continued to rise, reaching about Tk 45,000 crore ($3.7 billion) in FY26, but contended that a substantial portion of price increases is being retained by tobacco companies rather than captured by the government through taxation. PPRC called for tobacco tax policies that better reflect market realities to strengthen revenue collection and public health outcomes.

  • South Korea Signals Cigarette Tax Hikes, Tougher Warnings

    South Korea Signals Cigarette Tax Hikes, Tougher Warnings

    South Korea is advancing a broader tobacco-control agenda that could include future cigarette tax increases alongside stricter packaging regulations. Discussion of raising cigarette prices has resurfaced after Health and Welfare Minister Jung Eun-kyeong said the government needs to review tobacco pricing policy as part of efforts to address smoking and emerging nicotine products, including e-cigarettes, flavored cigarettes, and synthetic nicotine products.

    Cigarette prices have remained unchanged at an average of 4,500 won ($2.93) per pack since a 2015 increase, despite consumer prices rising about 20% over the same period. The government’s Sixth National Health Promotion Comprehensive Plan for 2026-2030 includes a review of increasing the health promotion levy to bring cigarette prices closer to OECD averages, which exceeded 9,800 won ($6.37) per pack in 2023. While no specific tax proposal has been announced, some observers believe prices could eventually move toward the 10,000-won ($6.50) range. Separately, the Ministry of Health and Welfare has finalized a new set of cigarette pack health warnings that will take effect on Dec. 23, following a six-month transition period. The revised warnings will add kidney cancer to the list of smoking-related diseases highlighted on packs, update warning images for several health conditions, and replace existing messages with more direct language, including changing “road to lung cancer” to “the end of smoking is lung cancer.” The ministry also said it will continue evaluating additional measures aligned with international tobacco-control standards, including larger warning labels, broader product coverage and potential plain-packaging requirements.

  • South Carolina Approves Tax on HNB

    South Carolina Approves Tax on HNB

    South Carolina Governor Henry McMaster approved House Bill 4303, which establishes an excise tax of 2.5 cents per pack of 20 on heated tobacco sticks.  The bill passed the House on May 2nd before receiving the Senate’s approval on May 13th, and is scheduled to take effect on October 1st.

  • Delaware Advances Bill to Raise Nicotine Taxes; Cigs by 71%

    Delaware Advances Bill to Raise Nicotine Taxes; Cigs by 71%

    Delaware lawmakers advanced legislation to significantly increase tobacco taxes and update licensing requirements, with House Bill 215 proposing to raise the cigarette tax from $2.10 to $3.60 per pack while also increasing taxes on vapor products, moist snuff, and other nicotine items. The measure would expand the definition of tobacco to include all nicotine-containing products, raise licensing fees across the supply chain, and is projected to generate up to $26.7 million annually, with implementation beginning in late 2026.

  • Iowa Senate Passes 5-Cent Tax on Vapes, Nicotine Products

    Iowa Senate Passes 5-Cent Tax on Vapes, Nicotine Products

    The Iowa Senate has passed a bill establishing a new excise tax on alternative nicotine products, introducing a 5-cent per-unit tax on nicotine pouches and a 5-cent per milliliter tax on e-liquid used in vape products. The tax applies to both disposable vapes and refill cartridges, creating a standardized levy across emerging nicotine categories that have historically gone untaxed in the state.

    Lawmakers said the extra revenue would go toward pediatric cancer research. “I understand that the level of tax we’re looking at here is not likely to be enough to deter usage, but it is enough to create this investment in pediatric cancer research that we all want to get behind,” Sen. Kara Warme (R-Ames) said.

  • Advocates Call to Merge Bangladesh’s Multi-Tier Cig Structure

    Advocates Call to Merge Bangladesh’s Multi-Tier Cig Structure

    At a workshop hosted by the National Heart Foundation of Bangladesh today (April 9), journalists and public health advocates called for setting the minimum retail price of a 10-stick cigarette pack at Tk100 ($0.82) in the FY2026–27 budget by merging the low and medium tax tiers and introducing a uniform Tk4 (3 cents) specific tax per pack.

    A keynote by Dr. Shafiun Nahin Shimul of the University of Dhaka said Bangladesh’s 35.3% tobacco use prevalence leads to nearly 200,000 premature deaths annually and an economic cost of Tk870 billion ($7.1 billion), more than double sector revenue. Speakers, including representatives from the National Tobacco Control Cell and health researchers, argued the current multi-tier tax structure enables down-trading to cheaper brands and said higher prices could reduce youth initiation, encourage cessation, and raise government revenue.

  • Weak Illicit Cigarette Enforcement Drains $1.1B in Pakistan

    Weak Illicit Cigarette Enforcement Drains $1.1B in Pakistan

    Pakistan is losing more than Rs300 billion ($1.1 billion) each year to the illegal cigarette trade due to weak enforcement against illicit manufacturing and smuggling, according to macroeconomic analyst Osama Siddiqui. He said effective action in the tobacco sector could significantly reduce the country’s widening revenue gap.

    The shortfall comes as fiscal pressures mount. The Federal Board of Revenue missed its March target by Rs185 billion ($666 million), collecting Rs1,182 billion ($4.3 billion) against a goal of Rs1,367 billion ($4.9 billion) — just a 6% year-on-year increase versus the 21% growth required. Meanwhile, the government is trimming development spending to fund fuel relief, while facing pressure from the International Monetary Fund to withdraw tax exemptions.

    Siddiqui argued that instead of raising taxes on already compliant sectors, authorities should prioritize curbing tax evasion in tobacco through stricter action against illegal production and smuggling, full implementation of track-and-trace systems, and tighter retail monitoring. He said plugging these leakages could create fiscal space for public relief and development spending at a time of heightened economic strain.

  • Oklahoma Cuts Cigarette Tax for HTPs

    Oklahoma Cuts Cigarette Tax for HTPs

    Oklahoma lawmakers approved legislation amending the state’s cigarette stamp tax law to extend a 50% tax exemption to cigarettes “intended to be heated rather than burned,” effectively lowering the excise burden on heated tobacco products. The measure revises definitions in existing statute to clarify that products designed to be heated still fall within the legal definition of a cigarette, but then carves out a partial exemption for those products from the stamp excise tax. The change applies within Oklahoma’s long-standing cigarette tax framework under the oversight of the Oklahoma Tax Commission.

    The law directs the Tax Commission to create rules to implement the exemption and ensure appropriate tax stamps are available for heated products before the act takes effect on November 1, 2026.

  • Australia Moving to Ban R&D Tax Credits on Tobacco, Gambling  

    Australia Moving to Ban R&D Tax Credits on Tobacco, Gambling  

    Australia is moving to block tax incentives for research tied to the gambling and tobacco industries under new legislation introduced in the Lower House today (March 25). Assistant Treasurer Daniel Mulino said the measure would prevent taxpayers from subsidizing research that could worsen addiction and other health harms. The exclusion applies to all types of gambling- and tobacco-related R&D, though a carve-out ensures that studies aimed at harm reduction — such as addiction prevention or cessation strategies — remain eligible for R&D tax offsets.

  • Nebraska Cigarette Tax Increase Fails to Advance

    Nebraska Cigarette Tax Increase Fails to Advance

    A proposal to raise Nebraska’s cigarette tax and increase levies on vaping products failed to advance in the state legislature after a cloture motion to end debate fell short. Danielle Conrad led a two-day filibuster against Legislative Bill 1124, arguing the measure would place a disproportionate burden on lower-income residents, while a group of fiscal conservatives also opposed the bill on anti-tax grounds. The proposal would have raised the state cigarette tax from 64 cents to $1.64 per pack, potentially generating up to $50 million annually to help address Nebraska’s budget deficit.

    Supporters, including Appropriations Committee Chair Rob Clements, had promoted the measure as a revenue tool to offset rising Medicaid costs amid a projected budget shortfall of more than $100 million. A compromise amendment to remove the cigarette tax increase while retaining a higher tax on vape products — expected to generate about $6 million — was briefly adopted but ultimately voided after the cloture vote failed.