Front Page News

Egypt More evidence against GHW

A Central Agency for Public Mobilization and Statistics (CAPMAS) study has proved conclusively that placing graphic health warnings (GHW) on cigarette packs has "zero affect" on smokers. The study revealed that tobacco sales were not affected at all by the imposition of a law last June requiring that 50% of each side of cigarette packaging should contain GHW.

The report also noted that Egyptians smoke 19 billion cigarettes a year and the number of smokers in Egypt increases by 6 to 9% annually, compared to 1% in the West.

"Smokers continue to smoke despite all the warnings you give them because of two things. According to Dr Wael Safwat, a gastroenterologist and smoking cessation specialist.

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Russia Contraband cigs "flooding" Europe

A renegade network of Russian and Eastern European factories is behind at least US$1 billion worth of contraband Jin Ling cigarettes pouring into Europe, according to a five-month investigation by the International Consortium of Investigative Journalists (ICIJ), a project of the Center for Public Integrity in Washington, D.C.

As delegates from nearly 160 countries met in Geneva to negotiate a global protocol to crackdown on tobacco smuggling, the ICIJ team has pieced together the unique story of the world's first ever cigarette brand designed and manufactured only for smuggling.

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Denmark E-cigs Ban

The Danish Medicines Agency, the government department in charge of drug approval, has determined that the type of nicotine found in e-cigarettes distributed by U2Lifestyle International is uncertified and therefore the sale of e-cigarettes containing the substance is illegal in Denmark.

"Nonsense," said Jorn Phigalt, the head of U2Lifestyle International. "They're [e-cigarettes] just something that smokers can use in restaurants or after an evening at the theatre." Phigalt does not believe the Danish government can stop him from selling the products.

"We can still legally sell electronic cigarettes, cigars and pipes from other European countries, and Danes aren't forbidden from buying them over the Internet for their own use," he said.

South Korea KT&G up 15.3% in Q3

KT&G saw its third-quarter earnings rise 15.3% year-on-year thanks to increased sales, according to a statement released by the company.

It earned a net profit of KRW228.8 billion (US$173.43 million) in the July-September period, compared with KRW198.5 billion in the same period in 2007 on increased year-on-year sales of 3.7% totaling KRW658.1 billion. At the same time operating profit fell 1.1% to KRW230.4 billion, according to KT&G.

UK Smuggled tobacco kills

A study published in the British Medical Journal suggests that four times more people die from the effects of smuggled tobacco than from illicit drugs. The report, compiled by Cancer Research UK, said that 4,000 deaths could be prevented annually in the UK if tobacco smuggling was eradicated.

"Smuggled tobacco is more dangerous than duty-paid tobacco because it brings tobacco onto the market cheaply, making cigarettes more affordable," according to Robert West of Cancer Research. "Cost is a major deterrent to smoking and the availability of cheap cigarettes, often for sale at half to a third of their official price, removes or greatly weakens the price incentive to quit. If we are to lower smoking rates and reduce health inequalities in this country, the government needs to treat tobacco smuggling as a national emergency and act now to stop the trade."

HM Customs and Revenue (HMRC) statistics show that 22% of all the tobacco smoked in the UK, or 18 billion cigarettes out of the total 82 billion, is smuggled into the country.

Indonesia Another tax hike?

The Indonesian government is planning to raise revenues from cigarette taxes in line with projected inflation rates and to meet the government's revenue target from excise duties in 2009 increased Rp3 trillion (US$270 million) to Rp49.49 trillion from Rp45.72 trillion in 2008, according to Anwar Suprijadi, director general for Customs and Excise Affairs. He said the rise of 6-7%, which is slated for early 2009, is intended to increase state revenue and reduce cigarette consumption.

"The increase in cigarette tax will not be high. It will be adjusted to the assumed inflation rate in the 2009 state budget," according to Suprijadi, quoted by ANTARA news agency. "We also have the mission to maintain public health in connection with the plan to increase cigarette taxes and to reduce cigarettes consumption. We already have the policy in hand we are going to popularize, after which we would take the next steps," he said.

Commenting on the issue of specific tariffs that the government is planning to impose, Suprijadi said: "we need to create harmony so that it would not cause a gap between small-medium enterprises and big companies. The increase of the cigarettes tax alone is about Rp2 trillion to Rp48 trillion," he said, adding that the government would continue to enforce the law, simplify administrative procedures and introduce a specific tax duty tariff.

Singapore Cigs to be marked

The letters SDPC (Singapore duty paid cigarettes) will be printed near the filter of all cigarettes sold legally in this island nation starting from January 1, 2009 as part of continuing efforts to eradicate contraband sales.

"All unmarked cigarettes will be deemed to be duty-unpaid and illegal," according to a statement issued by the Singapore Customs. Persons found in possession of unmarked cigarettes face fines of S$500 (US$352) for every pack of unmarked cigarettes in their possession. Visitors and returning residents bringing cigarettes in from overseas are advised to keep hold of their receipts, according to the Customs department's website.

"The availability of cheap duty-unpaid cigarettes will hamper our national effort to discourage smoking," said Fong Yong Kian, director-general of Singapore Customs. "The marking will serve as deterrence against the peddling and buying of contraband cigarettes and help our officers in the enforcement efforts." Singapore Cigs to be marked The letters SDPC (Singapore duty paid cigarettes) will be printed near the filter of all cigarettes sold legally in this island nation starting from January 1, 2009 as part of continuing efforts to eradicate contraband sales. "All unmarked cigarettes will be deemed to be duty-unpaid and illegal," according to a statement issued by the Singapore Customs. Persons found in possession of unmarked cigarettes face fines of S$500 (US$352) for every pack of unmarked cigarettes in their possession. Visitors and returning residents bringing cigarettes in from overseas are advised to keep hold of their receipts, according to the Customs department's website. "The availability of cheap duty-unpaid cigarettes will hamper our national effort to discourage smoking," said Fong Yong Kian, director-general of Singapore Customs. "The marking will serve as deterrence against the peddling and buying of contraband cigarettes and help our officers in the enforcement efforts."

India Smoking bans hit hard

India has banned smoking in public places, including all offices and restaurants, citing economic costs and the need to stem the loss of human lives. Smokers caught in violation of the ban face a fine of Rs200 (US$4).

While the ban continues to rankle India's tobacco industry, which claims the ban infringes on individual rights, observers point out that actually enforcing it is likely to be problematic. This has certainly been the case with past efforts to eradicate public spitting and urination.

Nonetheless, ITC, India's largest cigarette manufacturer, has mounted a legal challenge against the ban. The case came before the Supreme Court last November 18.

In a related move, the health ministry is urging a complete ban on foreign direct investment (FDI) in the domestic tobacco industry and is seeking to impose greater taxes on tobacco products.

"The health ministry is totally opposed to fresh overseas funds infusion in spite there being 100% FDI in the tobacco sector," Said health secretary Naresh Dayal. "We have also asked the finance ministry to impose more taxes on cigarettes and other tobacco products such as gutkha and pan masala."

The proposed ban on FDI is apparently not supported by the department of industrial policy & promotion (Dipp), government department tasked with approving foreign investment.

"When 100% FDI in the tobacco sector is allowed, banning it would be considered an investor-unfriendly policy and send negative signals to the investor world," according to an unnamed Dipp source.