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Tag: tax

  • Japan’s HTP Tax Changes Threaten JTI Growth: CFO

    Japan’s HTP Tax Changes Threaten JTI Growth: CFO

    Tax changes in Japan that will eliminate preferential tax treatment for heated tobacco products are expected to weigh on growth this year, according to Japan Tobacco International CFO Vassilis Vovos. The policy shift would tax heated tobacco at the same rate as traditional cigarettes, potentially raising retail prices by 70 to 100 yen ($0.46 to $0.65) per pack after sales tax. Vovos said the company plans to introduce incremental price increases throughout 2026 to offset the impact and avoid a single steep price hike.

    The tax change poses a challenge to JTI’s expansion of its Ploom heated tobacco device in Japan, the world’s largest heated tobacco market, which is currently led by rival Philip Morris International, according to Reuters. Parent company Japan Tobacco has relied on newer product categories to drive growth, with Ploom volumes rising more than 38% last year and reaching a 14.4% share of the heated tobacco segment. While executives warned the tax change could temporarily slow category growth, they said heated tobacco remains a key long-term revenue driver.

  • Singapore’s Tobacco Taxes Increase 20% Today

    Singapore’s Tobacco Taxes Increase 20% Today

    Beginning today (Feb. 12), Singapore is increasing tobacco excise duties by 20% across all tobacco products as part of Budget 2026 measures aimed at reducing smoking rates. Duties on cigarettes, cigars, and similar products will rise from S49.1 cents to S58.9 cents ($0.39 to $0.47) per stick, while taxes on smokeless tobacco and beedies will increase from S$378 per kg to S$454 per kg ($$299 to $359). Duties on unmanufactured and cut tobacco, as well as other tobacco refuse products, will rise from S$446 per kg to S$535 per kg ($352 to $423).

    The move builds on earlier a 10% tax hike in 2018 and a 15% hike in 2023, and complements broader tobacco-control policies, including standardized packaging and expanded smoke-free public spaces. Singapore’s daily smoking rate has steadily declined, reaching a record low of 8.4% in 2024, according to government health survey data.

  • New York Gov. Floats 75% Tax on Nicotine Pouches

    New York Gov. Floats 75% Tax on Nicotine Pouches

    New York Gov. Kathy Hochul’s executive budget proposes applying the state’s existing 75% wholesale tobacco tax to nicotine pouches. The proposal comes as state tobacco tax revenue declined from about $1 billion in 2021 to roughly $793 million last year, while cigarette smuggling — estimated to account for more than half of cigarettes consumed in New York — costs the state about $812 million annually, according to Tax Foundation data. State health data show nicotine pouch use among New York high school students increased from 1.5% in 2022 to 3% in 2025. The tax proposal is under consideration as part of budget negotiations.

  • Court Rules Korean Vape Juice Taxes Excessive

    Court Rules Korean Vape Juice Taxes Excessive

    The Seoul Administrative Court has partially ruled in favor of vape juice importers in a lawsuit challenging the Ministry of Health and Welfare’s imposition of National Health Promotion Charges, according to The Korea Herald, finding that while vape juices should be legally classified as cigarettes, the charges applied were excessive and violated principles of proportionality and equality.

    The court noted there was no evidence the importers intentionally misled authorities when declaring their products as derived from tobacco roots and stems, and highlighted that the levies—ranging from 278 million won to 1 billion won ($192,000 to $691,000)—exceeded sales revenue by up to 3.5 times, making payment effectively impossible. The ruling also criticized the flat-rate charge of 525 won ($0.36) per milliliter regardless of nicotine content, saying it failed to reflect differing health risks or serve the law’s public health objectives, while reaffirming that vape juices fall under the Tobacco Business Act’s definition of cigarette products.

  • Indonesia Considers Special Tax for Illegal Cigarettes

    Indonesia Considers Special Tax for Illegal Cigarettes

    Indonesia’s government proposed introducing a special excise tariff for illegal cigarettes as a way to curb illicit trade and boost state revenue, but the plan has sparked concern among industry players over potential market distortions and policy uncertainty. Finance Minister Purbaya Yudhi Sadewa said details are still being finalized, explaining the measure would mainly target small-scale local cigarette producers, while foreign illicit products would continue to face strict enforcement. He estimated that formalizing illegal production could generate trillions of rupiah in additional revenue, though discussions on fiscal impacts are ongoing and will require approval from the House of Representatives, a process that could take time, according to The Jakarta Post.

  • Croatia Raises Tobacco Taxes

    Croatia Raises Tobacco Taxes

    Croatia increased excise duties on cigarettes, tobacco products, and e-liquids from the start of the new year, pushing cigarette prices up by as much as €0.20 per pack, according to public broadcaster HRT. The government expects the tax hikes to generate nearly €130 million in additional revenue and says the measures are intended to curb smoking and nicotine use as part of its public health strategy.

    Business groups cautioned against sharp increases, warning they could drive consumers toward the black market. Smoking remains widespread in Croatia, with about 900,000 smokers and high usage among youth, including e-cigarettes. Tobacco production also remains economically significant, with around 300 domestic producers accounting for roughly 6% of European output and generating about €400 million annually.

  • Turkiye Limits Tax Hikes on Tobacco, Fuel, Alcohol

    Turkiye Limits Tax Hikes on Tobacco, Fuel, Alcohol

    Türkiye will limit Special Consumption Tax (SCT) increases on tobacco products in the first half of 2026, applying a 7.95% hike instead of the usual adjustment tied to producer inflation, which was close to 10%. Under the presidential decree published in the Official Gazette, the per-pack excise tax on cigarettes will rise by ₺1.28 ($0.03) to ₺56.78 ($1.31). The move departs from Türkiye’s standard practice of revising tobacco taxes twice a year in line with the domestic producer price index and is intended to ease consumer price pressures.

    Tobacco remains a major source of tax revenue in Türkiye, with more than 19 million smokers spending over $16 billion annually on cigarettes. From January to November 2025, tobacco generated ₺396.4 billion ($11.1 billion) in SCT revenue, accounting for a large share of the ₺1.01 trillion ($23.2 billion) collected from fuel, tobacco, and alcohol combined. The Treasury and Finance Ministry said the moderated tax increase supports the government’s 2026 inflation targets while remaining consistent with revenue projections in the central government budget.

  • Bosnia and Herzegovina Raises Cigarette Duty

    Bosnia and Herzegovina Raises Cigarette Duty

    Cigarette prices in Bosnia and Herzegovina increased on January 1 after a higher minimum excise duty came into force under a decision by the Board of Directors of the Indirect Taxation Administration (ITA). The minimum excise duty for 2026 was raised by 0.19 BAM ($0.11) per pack, setting the rate at 188.50 BAM ($113.10) per 1,000 cigarettes, or 3.77 BAM ($2.26) per pack of 20, up from 179 BAM ($107.40), or 3.58 BAM ($2.15), last year.

    The specific excise duty on cigarettes remains unchanged at 1.65 BAM ($0.99) per pack of 20. Meanwhile, excise duty on smoking tobacco has been set at 80% of the minimum cigarette excise, increasing to 150.80 BAM ($90.48) per kilogram in 2026 from 143.20 BAM ($85.92) in 2025.

    The ITA Management Board also confirmed that the compensatory interest rate for the period from January 1 to June 30, 2026, will remain unchanged at 12%.

  • Finland Ups Taxes for Tobacco, Alcohol

    Finland Ups Taxes for Tobacco, Alcohol

    Finland will sharply raise tobacco and nicotine taxes from January 1, 2026, pushing retail prices higher as part of a broader fiscal reform. A pack of cigarettes will rise to about €11.50, with more than 90% of the price made up of tax, while nicotine pouch prices are set to jump by roughly 37%, from around €5 to €7 per container. Tobacco taxes will continue to increase at six-month intervals until mid-2027.

    The government says the measures are intended to curb consumption and boost tax revenues, alongside parallel increases in alcohol taxes. Wine, beer, and cider prices will rise by an average of 9%, reinforcing a broader public-health and revenue strategy. By contrast, modest relief is planned in other areas, including slightly lower fuel excise duties and a small VAT cut on food and medicines.

    The tobacco price hikes are among the most significant consumer impacts of Finland’s 2026 tax package, which also includes income tax cuts for higher earners and reductions in social assistance. Health fees will increase, adding further cost pressures, while officials emphasize that higher tobacco taxation remains a central tool in reducing smoking rates and funding public services.

  • Korea Busts Cigarette Smuggling Operation

    Korea Busts Cigarette Smuggling Operation

    Seoul Regional Customs referred three people to prosecution for smuggling packs of cigarettes and falsifying customs declarations to evade taxes. Authorities said the suspects re-imported 1.75 million exported cigarette packs by claiming they were being sent to a third country, while concealing the goods in a warehouse in Busan and declaring shipments as water bottles and newspapers. The scheme reportedly avoided around 6.1 billion won ($4.2 million) in taxes.

    According to The Korea Times, the ringleader, already on trial for a similar smuggling case, had amassed significant assets, including a high-value Seoul apartment, which authorities have seized in coordination with prosecutors.