TobaccoReporter logo

Tag: tobacco tax

  • Ireland Reviews Tobacco Affordability

    Ireland Reviews Tobacco Affordability

    Ireland’s Health Information and Quality Authority (HIQA) is reviewing tobacco affordability at the request of the chief medical officer, amid little change in smoking prevalence in recent years. The Royal College of Physicians of Ireland reported that smoking among people aged 15 and older remained at about 17–18% between 2019 and 2025.

    HIQA said cigarette taxation has increased the price of a 20-pack by 24% since 2020, while average weekly earnings have risen 28%, potentially making tobacco more affordable despite higher taxes. Its analysis will compare tobacco affordability in Ireland with other EU countries and the UK and assess measures including household disposable income, wage growth, and household expenditure alongside GDP.

    The review will be submitted to the Chief Medical Officer and Department of Health to inform future policy. Ireland has already raised the legal purchase age to 21, banned disposable vapes and bright flavor descriptors, and restricted self-service vending machines. The government is also considering a generational ban on tobacco and nicotine-inhaling products.

  • Bulgaria Raises Tobacco Excise Taxes

    Bulgaria Raises Tobacco Excise Taxes

    Bulgaria increased excise duties on cigarettes and other tobacco products as its 2026 State Budget took effect Aug. 1. The cigarette excise rate rose from €113.51 to €120 per 1,000 cigarettes, increasing the pre-VAT price of a pack by about €0.13. The government has also scheduled further increases to €126 per 1,000 cigarettes on March 1, 2027, and €132 per 1,000 cigarettes on Jan. 1, 2028. Excise duties on smoking tobacco increased from €121.69 to €130 per kg, while the rate on heated tobacco products rose from €214 to €225 per kg.

    According to Bulgaria’s Ministry of Finance, the accelerated excise increases are intended to boost government revenue and align with ongoing European Union discussions on higher minimum tobacco tax rates. The ministry estimates the higher excise duties and related VAT collections will generate an additional €155.9 million in revenue during 2026.

  • Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Calls are growing in Australia for the federal government to reconsider tobacco excise policy, with critics arguing high cigarette taxes are fueling the illicit tobacco market. NSW Premier Chris Minns said the “massive” excise, which adds about A$30 ($21) to a 20-pack of cigarettes, has created a price gap that benefits illegal sellers. He said the policy needs to be reviewed while emphasizing his opposition to smoking and tobacco companies.

    Former law enforcement officials and lawmakers also warned that seizures alone are not addressing the scale of the illicit trade. Former Australian Federal Police and Australian Border Force officer Rohan Pike said enforcement efforts are only capturing a small portion of illegal tobacco entering the country, while Liberal MP Mary Aldred said the black market is contributing to organized crime concerns. The federal government has rejected lowering excise and said it remains focused on enforcement and border seizures.

  • Indonesia Adding, Not Subtracting Tobacco Tax Tiers

    Indonesia Adding, Not Subtracting Tobacco Tax Tiers

    Indonesia’s government plans to expand the country’s tobacco excise tax structure with additional tax tiers this year, according to Finance Minister Purbaya Yudhi Sadewa. The proposal remains under discussion with the House of Representatives, but the minister said implementation would proceed after budget deliberations are completed. The government has said the additional tiers are intended to reduce illicit cigarette circulation and increase state revenue.

    The plan has faced criticism from public health and civil society groups, which argue that adding more tiers to Indonesia’s already complex tobacco tax system may not effectively address illegal cigarette sales. Indonesia currently has eight excise tax groups covering machine-made and hand-rolled kretek cigarettes, and industry observers have called for simplification rather than expansion. Supporters of reforming the structure say a more balanced approach is needed to limit illicit trade while maintaining government revenue from the legal tobacco market.

  • Philippine Tax Hikes Reduced Revenue, Fueled Illicits: Economist

    Philippine Tax Hikes Reduced Revenue, Fueled Illicits: Economist

    American economist Arthur Laffer said the Philippines may have reached the point where continued increases in tobacco excise taxes are reducing government revenue while accelerating illicit cigarette trade. Citing government data, Laffer said tobacco excise collections peaked at PHP176 billion ($2.8 billion) in 2021 before declining to PHP134 billion ($2.1 billion) in 2024 despite ongoing annual tax increases, arguing the trend reflects the “Laffer Curve” effect.

    He also referenced a University of Asia and the Pacific study estimating illicit cigarette trade cost the government PHP22 billion ($352 million) in lost tax revenue and contributed to broader economic losses. Laffer urged policymakers to adopt a data-driven approach that balances public health and fiscal objectives, including lower tax rates for smoke-free nicotine products to encourage adult smokers to switch while helping curb the illicit market.

  • 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.