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Tag: taxes

  • Japanese Consumers Facing Double Hit

    Japanese Consumers Facing Double Hit

    The first phase of Japan’s tax increases on tobacco products and corporate income will take effect April 1, marking the first phase of a broader revenue plan to finance expanded defense spending, with additional increases planned for October and January 2027. Both conventional cigarettes and heated tobacco products will be affected, with the long-standing tax gap between the two categories set to narrow. The government aims to raise ¥1.3 trillion ($8.2 billion) in fiscal 2027 through staged hikes on tobacco, corporate, and personal income taxes to help fund a ¥43 trillion ($271 billion), five-year defense buildup that began in 2023.

    In response to the new corporate taxes, Philip Morris Japan said it will raise prices by ¥40–¥50 (25 to 32 cents) per pack on 50 heated tobacco products from April 1, while Japan Tobacco plans ¥20–¥30 (13 to 19 cent) increases on 37 products. Manufacturers have not yet outlined pricing responses for October’s tax hike.

    The Finance Ministry estimates tobacco tax revenue will increase by ¥44 billion ($277 million) in fiscal 2026, ¥116 billion in 2027 ($731 million), and ¥212 billion ($1.3 billion) annually thereafter as additional levies take effect. The measures come as Japan seeks to secure more than ¥9 trillion ($56.7 billion) in defense spending for fiscal 2026, reaching its 2% of GDP target ahead of schedule.

  • Florida Moving Toward Taxing HTPs Differently

    Florida Moving Toward Taxing HTPs Differently

    A Florida House panel advanced legislation that would establish a separate tax structure for heated tobacco products (HTPs), distinguishing them from traditional cigarettes under state law. The bill (HB 377), introduced by Rep. Chase Tramont, reinforces an existing Department of Business and Professional Regulation interpretation that classifies HTPs as “other tobacco products” rather than cigarettes. The change would allow HTPs to be taxed at a lower rate than cigarettes, which are currently taxed at approximately $1.34 per pack. The measure cleared the House Industries and Professional Activities Subcommittee with bipartisan support, though some lawmakers raised concerns about offering tax incentives for products that still pose health risks.

    The legislation defines HTPs as tobacco-containing products used in electronic devices that heat, rather than burn, tobacco to produce an inhalable aerosol. Supporters, including Florida TaxWatch, argue that differentiated taxation could encourage smokers to transition away from combustible cigarettes. The bill now heads to the Commerce Committee, while a companion Senate measure (SB 754) continues moving through committee review.

  • Jordan Cuts Taxes on Tobacco Alternatives

    Jordan Cuts Taxes on Tobacco Alternatives

    Effective today (December 22), Jordan amended its Special Tax Law of 2025 to reduce taxes on tobacco alternatives sharply. The changes, published yesterday in the Official Gazette, are expected to lower retail prices and are aimed at better regulating the nicotine market, curbing smuggling, and potentially encouraging smokers to switch from combustible cigarettes.

    Under the amendments, the special tax on heated tobacco devices has been cut by 50%, from 20 JOD to 10 JOD ($28.20 to $14.10) per device. Taxes on pre-filled e-cigarettes were reduced from 5 JOD to 1.5 JOD ($7.05 to $2.12) per milliliter, while non-filled vape devices saw their tax lowered from 15 JOD to 10 JOD ($21.15 to $14.10). E-liquid refills were also reduced by half, from 1 JOD to 0.5 JOD ($1.41 to $0.71) per milliliter.

  • Irish Retailers Lose Fight Against ‘Irrational’ License Fees

    Irish Retailers Lose Fight Against ‘Irrational’ License Fees

    A retailers’ group failed in a High Court challenge against Ireland’s new licensing fees of up to €1,800 for selling tobacco and nicotine products. Justice Rory Mulcahy ruled that the former health minister acted lawfully in setting the fees under the Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023, finding the charges were justified on public health grounds and not arbitrary.

    The new regime, effective from February, replaces a one-off €50 registration fee with renewable annual fees of €1,800 for tobacco and nicotine products, €1,000 for tobacco only, or €800 for nicotine products only. The court rejected claims that the fees were irrational or disproportionately harmful to small retailers, noting that discouraging tobacco sales would not make the regulations unlawful.

  • Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    The Action for Economic Reforms (AER) and Philippine government officials oppose bills seeking to cut tobacco excise taxes, warning the move could increase smoking rates and reduce government revenues without addressing illicit trade. A joint study by AER and Johns Hopkins Bloomberg School of Public Health argues that high tobacco taxes do not drive illicit trade, but it is instead a product of weak enforcement and local governance.

    AER projects up to two million new smokers by 2035 and P167 billion ($2.8 billion) in lost revenue if taxes are lowered. Officials, including Senator Risa Hontiveros-Baraquel and BIR Commissioner Romeo Lumagui, stressed that stronger enforcement, a nationwide licensing system, and an upgraded track-and-trace program are key to curbing illicit tobacco sales and protecting public health.

  • Cigarette Manufacturers Raise Prices in Macedonia

    Cigarette Manufacturers Raise Prices in Macedonia

    Cigarette prices in Macedonia increased about 10 denars ($0.19) per pack beginning September 29, however, many consumers have yet to feel the impact due to retailers selling off old stock. Producers say the higher prices will be felt in the coming days, affecting leading brands such as Dunhill, Lucky Strike, Pall Mall, and Rothmans.

    The increase is not tied to new excise duties or state taxes, but stems from manufacturers’ pricing policies. Industry analysts link the move to rising production and logistics costs, as well as alignment with regional price trends, according to TV21.

  • Philippines Raises Minimum Prices for Cigarettes and Vapes

    Philippines Raises Minimum Prices for Cigarettes and Vapes

    The Bureau of Internal Revenue (BIR) in the Philippines raised the minimum retail prices for cigarettes and vape products to reflect updated tax and production cost estimates, according to a revenue regulation issued July 18. The floor price for a pack of cigarettes is now set at ₱85.57 ($1.45), up from ₱78.58 ($1.34), with the estimated production cost increased to ₱10.25 ($0.17) per pack. Heated tobacco products now carry a floor price of ₱61.47 ($1.04) per 20-piece pack.

    For vape products, the minimum price for a 2ml nicotine pod surged to ₱353.18 ($6) from ₱180.67 ($3.07). Disposable pods are now priced at ₱183.31 (3.12), prefilled pods at ₱174.89 ($2.97), and disposable devices at ₱98.18 ($1.67)—all for 10ml products.

    The BIR collected ₱58.97 billion ($1 billion) in excise taxes from tobacco products in the first half of 2025, a 34% increase year-on-year. Vape excise tax collections soared by 738%, reaching ₱1.5 billion ($25.5 million).

    The updated prices will take effect 15 days after publication in the Official Gazette or the BIR’s website.

  • Philippine Government Urged to Fight Illicit Trade with Lower Taxes 

    Philippine Government Urged to Fight Illicit Trade with Lower Taxes 

    As the Philippine government is making progress against illicit vape products with tax stamps, the Philippine Tobacco Institute (PTI) suggests it lower tax rates on cigarettes to replenish its declining revenues as the price disparity between legal and illicit products worsens. Last year, illicit tobacco incidence reached a record 18.2%.

    PTI said tax policies and illicit trade are inextricably linked as the organization pushes for the recalibration of tobacco excise taxes and enhancement of enforcement and prosecution efforts. It issued the call days before the Senate Committee on Ways and Means discusses House Bill 11360, which seeks to adopt an odd-even scheme in hiking the tobacco excise taxes: 2% every even-numbered year and 4% every odd-numbered year until 2035. The current tobacco excise tax rate increases by 5% annually, with a base tax of P60 ($1.08) per pack.

    PTI president Jericho Nograles argued that overly aggressive or automatic tax hikes can incentivize illicit trade. He said higher taxes widen the price gap between legal and illegal products, thus increasing the profitability of smuggling and counterfeiting. PTI said tax revenue continues to decline while smoking incidence increases, meaning people are switching products, that can cost P40 (72 cents) per pack versus P140 ($2.52) for legitimate ones.

     “The automatic tax hikes have resulted in declining government revenues,” Nograles said. “Our position is that if Congress lowers the rates and the government steps up in enforcement, then there would likely be better collections and revenues. It would not only be acceptable, but a win-win for industry and government when illicit trade in tobacco is stopped.”

  • Bangladesh: Anti-Tobacco Advocates Want More Taxes

    Bangladesh: Anti-Tobacco Advocates Want More Taxes

    Anti-tobacco organizations in Bangladesh said mid-year tobacco tax additions advanced public health protections and created the potential for additional government revenue. Though not planned in the original budget, the adjustments raised retail prices of cigarettes on a tiered scale between 8% and 20%, and imposed a uniform supplementary duty rate of 67% on all tiers.

    Abdullah Nadvi, research director of Unnayan Shamannay, called for the government to not only maintain the taxation but to bolster it 2025-26 fiscal budget, saying the government could collect an additional 40% in tobacco revenue without changing the duty rate.

    Dr. Mahfuz Kabir, research director at BIIISS, said that effective taxation could increase government revenue from cigarettes by 11% to 28%. He warned that failing to adjust cigarette prices with inflation has led to a steady rise in sales in recent years.

  • Washington: More Tax Hikes Proposed

    Washington: More Tax Hikes Proposed

    On January 20, the state of Washington saw two bills proposed, House Bill 1416 and House Bill 1417, that would further hike the state’s higher-than-average tobacco taxes. We reported that the two bills would add an additional 33 cents of taxes per pack of cigarettes (currently based at $4.035 before any local sales taxes), and that “existing taxes on most vape juices, cigars, and other products would be raised.”

    Writing for Halfwheel, Patrick Lagreid dug into the actual increases on several nicotinereu products. Washington has a tax rate of 95% of the taxable sales price, maintaining a cap on the maximum tax that can be charged. Lagreid said the cap on premium cigars would be raised from 65 cents to 72 cents.

    “The bill also raises the tax on vapor products from 27 cents to 30 cents per milliliter of solution, while what are described as ‘accessible containers of solution’ will go from nine cents to 10 cents per milliliter, regardless of whether or not they contain nicotine,” he wrote. “Moist snuff would also see an increase, going from $2.526 to $2.776 per package of 1.2 ounces or less, though there is a provision that the tax must be at least that amount or 83.5% of the cigarette tax.”

    The bills were proposed by Rep. Kristine Reeves and referred to the House Committee on Finance for initial rounds of debate. If passed as written, the increases would go into effect October 1.