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Tag: tobacco tax

  • Philippines’ Tobacco Taxes Rise for First Time in Three Years

    Philippines’ Tobacco Taxes Rise for First Time in Three Years

    The Philippines’ tobacco excise tax collections rose 12.25% to ₱150.9 billion ($2.41 billion) in 2025, exceeding the Bureau of Internal Revenue’s (BIR) target of ₱149.6 billion ($2.39 billion) and ending a three-year streak of missed revenue goals. The increase was driven by a 29.2% rise in tobacco product removals to 2.9 billion units, including cigarettes, cigars, heated tobacco products, and vapor products, along with stronger enforcement against illicit trade and enhanced monitoring through tax stamps, floor-price rules, and other compliance measures.

    BIR Commissioner Charlito Martin Mendoza said the agency plans to further strengthen its digital track-and-trace capabilities through the Special Products Automated Revenue Collection System (SPARCS) to improve supply chain oversight and combat tax evasion. For 2026, the BIR has set a tobacco excise tax collection target of ₱166.6 billion ($2.7 billion) as part of its overall excise tax revenue goal of ₱359.7 billion ($5.8 billion).

  • Armenia Raises Excise Taxes on Tobacco, Alcohol, Fuel

    Armenia Raises Excise Taxes on Tobacco, Alcohol, Fuel

    Armenia’s parliament approved legislation raising excise taxes on tobacco products, alcohol, gasoline, and diesel fuel, a move expected to increase retail prices. The measure introduces annual indexation of excise taxes on excisable goods, with tobacco excise rates set to increase by 7% each year, while excise taxes on heated tobacco products will rise by 30% annually. The excise tax on electronic cigarettes will double in the first year under the new framework. The bill passed its second reading with support from lawmakers in the ruling Civil Contract party.

  • NSW Premier Backs Review of Tobacco Excise Tax

    NSW Premier Backs Review of Tobacco Excise Tax

    New South Wales Premier Chris Minns called for a rethink of Australia’s tobacco excise policy, arguing that repeated tax increases are fueling the growth of the illicit tobacco market. Minns said the excise was “actually creating a black market for cigarettes,” making illegal products cheaper and more accessible than intended under tobacco control measures.

    His comments align with those of politician Pauline Hanson, who this week urged the federal government to cut tobacco excise rates to undermine criminal groups profiting from illicit cigarette sales. Hanson argued that continued excise increases are creating incentives for organized crime and called for stronger customs enforcement.

    The debate follows new data from the Australian Bureau of Statistics estimating that nicotine consumption rose nearly 40% between 2017 and 2025, driven largely by growth in illicit cigarettes, e-cigarettes, and other nicotine products. The report estimated illicit products accounted for 80% of nicotine consumption in 2025, up from 12% in 2017.

    The issue has become increasingly prominent as Australia faces an ongoing illicit tobacco-related crime wave. More than 125 firebombings in Victoria have been linked to disputes over the illegal tobacco trade. Meanwhile, federal budget projections show tobacco excise revenue falling from A$7.8 billion ($5.5 billion) in 2024-25 to A$4.1 billion ($2.9 billion) in 2025-26, despite excise rates continuing to rise. Australia’s tobacco excise increased again in March to A$1.53 ($1.09) per cigarette stick, with a further increase scheduled for September.

  • Bangladesh Health Advocates Criticize Tobacco Tax Measures

    Bangladesh Health Advocates Criticize Tobacco Tax Measures

    Public health advocates panned Bangladesh’s proposed FY2026-27 budget, saying it falls short of introducing tobacco tax reforms that would reduce consumption or significantly boost revenue. Speaking at a post-budget press conference organized by the Dhaka Ahsania Mission, critics said the small increase in low-tier cigarette prices and unchanged taxes on bidis, zarda, and gul would make tobacco products more affordable in real terms as inflation and incomes rise.

    Advocates noted that low-tier brands account for nearly 75% of the cigarette market and proposed merging the low and medium tiers, increasing prices, and introducing a specific supplementary duty. They estimate the measures could generate an additional Tk44 billion ($356 million) in revenue and prevent about 400,000 premature deaths over time.

    The group also warned that taxing nicotine pouches and heated tobacco products without banning them effectively legitimizes emerging nicotine products. Bangladesh reports having an adult tobacco-use rate exceeding 35%, with tobacco-related diseases causing nearly 200,000 deaths annually.

  • Bangladesh Criticized for Minor Tobacco Tax Increases

    Bangladesh Criticized for Minor Tobacco Tax Increases

    Anti-tobacco groups in Bangladesh criticized the proposed FY2026-27 national budget for failing to impose stronger tobacco tax increases while effectively legalizing nicotine pouches and heated tobacco products by bringing them into the tax framework. In a joint statement, the Bangladesh Anti-Tobacco Alliance and Bangladesh Network for Tobacco Tax Policy argued that the budget’s modest cigarette price increases — particularly a Tk2 ($0.016) rise for low-tier brands, which account for about 75% of sales — would do little to reduce affordability or consumption.

    The groups also expressed concern that prices for bidis, jarda, and gul remain unchanged, warning that the legalization of nicotine pouches and heated tobacco products, combined with limited tax measures on conventional tobacco, could undermine public health objectives and tobacco-control efforts in the country.

  • Malaysian Tobacco Control Groups Pushing for 5% Tax Increases

    Malaysian Tobacco Control Groups Pushing for 5% Tax Increases

    Tobacco control organizations in Malaysia are calling for annual 5% increases in tobacco taxes following survey findings showing broad public support for higher excise rates. Research conducted by the Social and Economic Research Initiative (Seri) found that 80% of 3,200 respondents supported yearly tax hikes, while 72% believed higher tobacco taxes could help ease broader cost-of-living pressures.

    Groups backing the proposal include the Malaysian Anti-Drug Association, Malaysian Council for Tobacco Control, and the Muslim Youth Movement of Malaysia. Seri senior researcher Muhammad Daniel Kittu said tobacco excise duties have remained largely unchanged since 2015 despite rising prices for staple goods, arguing that higher cigarette prices could reduce smoking rates while redirecting household spending toward essentials such as food, healthcare, and education.

    Responding to concerns that higher taxes could fuel illegal sales, Kittu said weak enforcement — rather than pricing — remains the primary driver of illicit tobacco activity.

  • Clashing Protests On Both Sides of Bangladesh’s Tobacco Tax Debate

    Clashing Protests On Both Sides of Bangladesh’s Tobacco Tax Debate

    Civil society groups in Bangladesh formed a human chain and called for higher tobacco taxes and pricing reforms ahead of the 2026–27 national budget at a protest in Tangail today (May 4). Organizers, including the Development Organization of the Rural Poor (DORP), urged the government to merge lower cigarette price tiers and raise minimum prices, proposing Tk100 ($0.81) per 10-stick pack for the lowest tier and a uniform 67% supplementary duty alongside a specific tax of Tk4 ($0.03) per pack. Speakers said low and mid-priced cigarettes account for nearly 90% of sales, contributing to accessibility and rising use, particularly among youth.

    Participants also highlighted the broader public health and economic impact, noting that tobacco use prevalence in Bangladesh stands at 35.3%, and that tobacco-related costs reached more than double industry revenue, and called for stronger pricing policies and alternative employment options for bidi workers as part of broader tobacco control efforts.

    Concurrently, bidi workers called for higher wages and the removal of taxes on the sector during a May Day rally organized by the Bangladesh Bidi Sramik Federation in front of the National Press Club. Workers demanded the withdrawal of taxes on the bidi industry, the elimination of advance income tax on bidis and cigarettes, improved wages, ration support, and action against counterfeit products. Union representatives also raised concerns about industry conditions and alleged financial outflows by multinational companies, while emphasizing the need for policy changes to support workers in the bidi sector.

  • Vietnam Eyes Illicit Market as it Introduces Mixed Tobacco Tax  

    Vietnam Eyes Illicit Market as it Introduces Mixed Tobacco Tax  

    Vietnam’s planned introduction of a mixed tobacco excise tax from 2027 is expected to combine a 75% ad valorem rate with a gradually increasing specific tax, adding 2,000 VND ($0.08) per pack annually and reaching 10,000 VND ($0.38) by 2031. The policy aims to reduce smoking rates, increase the tax share of retail prices to nearly 60%, and boost excise revenue, which is projected to more than double to 39.1 trillion VND ($1.5 billion) by 2030. However, officials and experts warn that higher taxes could widen price gaps and push some consumers toward illicit tobacco, which already accounts for an estimated 20–22% of the market and causes annual tax losses of up to 6 trillion VND ($228 million).

    Authorities say stronger enforcement will be critical to support the policy, including higher penalties for smuggling and retail violations, expanded oversight of e-commerce sales, and coordinated action among customs, police, and border forces. Recent enforcement efforts have resulted in over 23 million packs of illicit cigarettes seized and more than 1,600 violations recorded, though officials note that trafficking remains widespread and increasingly sophisticated across multiple regions.

  • Report: New 15% Tobacco Tax One of Five Streams EU Considering  

    Report: New 15% Tobacco Tax One of Five Streams EU Considering  

    Reuters reported that the European Union is discussing five new revenue streams that would help fund its seven-year budget, allowing for new priorities like defense ​and competitiveness and service joint debt, while limiting cuts to agriculture and regional aid.

    The proposed streams for 2028-2034 are an emissions trading system, a carbon border adjustment mechanism levy, a non-collected electronic ⁠waste tax, a corporate ​resource for ⁠Europe levy, and a tobacco excise duty. The tobacco tax would be a new 15% uniform call-rate tobacco duty, paid by EU member states from national budgets, which would bring in an estimated €11.2 billion ​a year, the ​Commission says.

    By a vote of 370-201, EU’s parliament voted to increase its budget 1.26%, increasing total spending to about €1.94 trillion.

  • Indonesia’s Tax Strategy Not Impacting Smoking Rates

    Indonesia’s Tax Strategy Not Impacting Smoking Rates

    Indonesia’s long-running reliance on tobacco excise increases has failed to significantly curb smoking, according to a National Health Survey, with around 70 million people still using tobacco and prevalence remaining among the highest globally. Despite a 23% tax increase in 2020 and steady annual rises since, cigarette affordability has remained largely unchanged, as income growth has offset price increases, leaving consumers spending roughly the same share of income on cigarettes over the past decade.

    Analysts say structural issues are undermining the effectiveness of tax policy, particularly wide price disparities across product categories. Lower-taxed hand-rolled kretek cigarettes continue to provide a cheaper alternative, encouraging smokers to downtrade rather than quit. This dynamic has limited the impact of higher taxes on overall consumption.

    Health economists argue that without more aggressive and harmonized tax reforms, excise policy alone will continue to fall short as a deterrent. The findings underscore broader challenges for tobacco control strategies in emerging markets, where affordability and product substitution can blunt the intended impact of fiscal measures.