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Tobacco tax increases are the most effective way to encourage people to stop smoking.
Ukrainian President Victor Yushchenko, citing concern for the tobacco industry, on Nov. 11 vetoed legislation that would have hiked the excise tax on tobacco products once more.
It is worth remembering that - even though tobacco excise taxes were increased in September 2008, and again in February and May of this year - cigarette prices in Ukraine remain among the lowest in Europe. This leads directly to a public health catastrophe for the nation and creates conditions for rampant smuggling of made-in-Ukraine cigarettes to other nations. . . .
However, tobacco companies in Ukraine claimed that this tax increase would have been disastrous for their business. . . .
Transnational tobacco companies came to Ukraine in 1993. They promised employment, investment and revenue. Now they control 99 percent of the tobacco production in Ukraine. In 1992, Ukraine produced 9,000 tons of tobacco leaves. However, despite huge increases in cigarette production, tobacco growing has almost disappeared in the country. In 1996-2008, the foreign trade balance of tobacco leaves and products was negative for Ukraine and totaled more than $2 billion. It actually means that Ukrainian smokers invested $2 billion in the economies of other nations.
What tobacco companies actually produce is death. . . .
Many politicians in Ukraine already understand that high tobacco taxes are good both for public health and public revenues. I hope that the current and future president of Ukraine will understand this as well.
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Smokers in California will have to dig much deeper into their pockets to buy a pack of cigarettes next year if a proposed ballot measure passes.
The Californians for a Cure plan is aimed at raising millions of dollars for cancer research, smoking prevention programs and to help bankroll anti-tobacco smuggling efforts. The measure is backed by, among others, cancer research and health advocates.
Their plan calls for a buck increase in the state's excise tax on tobacco, to $1.87 per pack. The money raised would flow into a trust fund. Sixty-cents of the dollar raised from a pack of smokes would to go to fund research on cancer and other smoking-related illnesses.
Under the plan, 20 cents would go to fund smoking cessation and tobacco use prevention programs, 15 cents would go to help fund research facilities, while three pennies would go to fund tobacco smuggling enforcement.
The plan calls for about two percent of the revenue to go for administrative costs.
How the money would be spent would be overseen by a nine-member oversight committee.
Since the smoking ban in Kenya, people can only smoke in special zones
At Jeevanjee gardens in Nairobi, smokers gather during their lunch hour to read, chat and light up.
It is one of the few zones in the Kenyan capital where people can smoke in public, since the ban on smoking in public came into effect in 2007.
As he takes a puff, one of the young men describes his habit.
"I've been smoking for 40 years but I hate it," he says. . . .
Dr Twalib Ngoma, president of the African Organisation for Research and Training in Cancer (AORTIC), says that Africa is on the brink of a smoking epidemic.
"Africa is in the area of the pre-epidemic and so we should prevent the epidemic," he told the BBC World Service.
"We should not wait until there is an epidemic and then work on it. We should prevent the epidemic."
Tobacco-related cancer was one of the key topics discussed at a recent international cancer conference in Tanzania.
One of the reports presented there warns that African nations are set to undergo the highest increase in the rate of tobacco use among developing countries. . . .
"For the first time in history, we have the tools in hand to prevent a pandemic," says Dr Otis W Brawley, chief medical officer of the American Cancer Society.
"Smoke-free public places are one example of a low-cost and extremely effective intervention that must be implemented now to protect health."
As well as Kenya, Niger also recently introduced a smoking ban in public places. . . .
"If a consumer is addicted to tobacco, then it is possible to put prices up and they will go without lunch."
But Mr Spielman says that he expects that over time, increasing advertising restrictions and bigger health warnings will come into place in African countries.
But in the meantime, as long as there are smokers who will sacrifice lunch for a packet of cigarettes, there will always be consumers.
For the first time in history, we have the tools in hand to prevent a pandemic.Dr Otis W Brawley, chief medical officer of the American Cancer Society.
Cigarette sales have fallen sharply across Florida since a $1-a-pack tax increase took effect July 1, plunging nearly 50 percent in some counties.
Statewide, cigarette sales that regularly topped 100 million packs per month dropped to 73 million packs the month the tax became law. Since then, sales have inched back to around 78 million packs but remain well below prior levels.
To supporters, the sagging sales are evidence that the tax is meeting its public health objective: getting smokers to quit. Critics, however, say many people are simply buying their cigarettes elsewhere or switching to items that aren't subject to the higher tax, like small cigars.
The state charge on cigarettes is now $1.34, compared with the 34-cent tax that had been in place since 1990.
"It's working exactly the way it was designed to work. People are quitting," said
With a simple marketing twist, tobacco companies are avoiding hundreds of millions of dollars a year in taxes by exploiting a loophole in President Barack Obama's child health law.
Obama and Congress increased taxes on tobacco products earlier this year to pay for expanded children's health insurance, but tobacco for roll-your-own cigarettes saw a disproportionate leap, from $1.10 to $24.78 per pound. Some predicted the tax would kill the roll-your-own industry, which had offered a cheaper alternative to packaged cigarettes.
But tobacco companies quickly adapted. The Associated Press found that as soon as the tax was on the books, companies all but shut down their roll-your-own brands and reinvented them under a less-restricted, less-taxed category: pipe tobacco. It's still destined to be rolled and smoked, but it's taxed at barely a tenth the rate, $2.83 per pound.
Normally, pipe tobacco is coarser and moister than cigarette tobacco. But nothing says it has to be. In fact, the federal government says the only distinction between the two is how it's labeled. That effectively gives tobacco marketing executives an opportunity to shape the company's tax rate. . . .
Anti-tobacco groups say it's deception, and not just because of the taxes. While flavored cigarettes are now banned in an effort to reduce the appeal of smoking to children, no such ban applies to pipe tobacco, allowing companies to sell black cherry, vanilla and other varieties. "This is a direct challenge to the federal government," said Matthew Myers, president of the Campaign for Tobacco Free Kids.
It is in society's obvious interest, then, to crack down on the rampant trade in contraband cigarettes. And, in fairness, some efforts have been made. Brennan and Benzie report that a law enforcement trial project, in which U.S. and Canadian officers worked side by side this summer on Canadian Coast Guard vessels, led to more efficient cross-border patrolling. Such joint operations should become permanent.
Other ideas include restricting raw materials for large-scale cigarette-making to those with a valid manufacturers' licence and working with native groups to bring about a First Nations tobacco tax equal to the province's. It might also help if government did more work to promote alternate – and legitimate – economic pursuits in First Nations reserves, thereby easing dependence on illegal activities.
The illicit tobacco trade didn't appear overnight, and it won't be easily eliminated. But more could surely be done to stanch this dirty business, to protect both government revenues and public health.
One in two cigarettes smoked in Ontario is illegal, robbing provincial and federal coffers of more than $2 billion a year and raising concerns about children gaining easy access to tobacco.
"There's absolutely no doubt that there's an incredible amount of revenue lost both in the province of Ontario and Quebec and to the federal government as well," provincial Community Safety Minister Rick Bartolucci said in an interview.
A study for the Canadian Tobacco Manufacturers' Council found that illegal cigarette purchases in Ontario have climbed to 48.6 per cent, followed by Quebec with 40.1 per cent. . . .
Originating on First Nations reserves, the contraband smokes are readily available in most towns and cities.
"People have to understand the severity of buying, of making ... and what damage it does do," said Bartolucci.
But how do we know? Enter the squad of "butt pickers."
In a separate investigation last month, the National Coalition Against Contraband Tobacco collected by hand 19,770 cigarette butts near 110 high schools, and discovered 30 per cent were illegal.
The coalition, which was launched by the Canadian Convenience Stores Association, whose members lose an average of $115,000 in sales annually due to illegal cigarettes, analyzed 14,064 butts from 75 Quebec high schools and concluded 45 per cent were contraband.
Because each legal cigarette has a distinctive marking on the filter, investigators are able to pinpoint hot spots for untaxed and unregulated smokes.
Ontario and Quebec represent about 95 per cent of illegal tobacco sales in Canada, and about 33 per cent of cigarettes sold in Canada are contraband, according to the manufacturers' council study. . . .
The major source of that supply is the Akwesasne native reserve that straddles Ontario, Quebec and the State of New York. Ten cigarette manufacturing plants on the U.S. side pump out billions of cigarettes annually.
"We know that perhaps 95 per cent of the contraband in Canada originates in illegal operations located on four First Nations reserves, the most important of which by far is the U.S. side of Akwesasne near Cornwall, Ont. There is also Kahnawake near Montreal, Tyendinaga near Belleville, and Six Nations near Brantford," said Cunningham.
Ukrainian President Victor Yushchenko, citing concern for the tobacco industry and fears of cigarette smuggling, on Nov. 11 vetoed legislation that would have hiked the excise tax on tobacco products by 36 percent.
Public health advocates called a news conference on Nov. 12 to criticize Yushchenko and note that price increases are the most effective way to reduce smoking. Roughly a third of Ukraine's adults smoke, one of the highest rates in the world.
Tobacco-related illnesses prematurely kill some 300 Ukrainians daily, said former Health Minister Mykola Polischuk. "The president's veto contradicts his mottos about European integration," Polishchuk said. "Today all Europe is fighting for air uncontaminated with tobacco smoke."
The Irish Cancer Society is urging the Government to increase the tax on cigarettes by €1 in the forthcoming budget in order to fund the fight against tobacco smuggling.
The organisation denies that an increase in the price of cigarettes would increase the sale of cheap smuggled tobacco.
“High price is not the problem. The problem is that the courts aren’t imposing high enough penalties, there aren’t enough disincentives and a key piece is that the Revenue does not have the resources it needs,” said Kathleen O’Meara, head of advocacy with the Irish Cancer Society.
Smuggling remains a problem in countries such as Turkey where cigarettes are cheap, she said.
Congressional leaders yesterday slammed the deal for a stamp tax technology on cigarettes and alcohol products being worked out between the Switzerland-based SICPA Product Security SA (SICPA) and the Bureau of Internal Revenue (BIR), saying it is heavily in favor of the Swiss proponent.
Antique Rep. Exequiel Javier, House ways and means chair, also said the BIR could not implement the SICPA proposal through the build-operate-transfer (BOT) scheme without the approval of Congress.
"If it’s a straight regular BOT system, then there’s no need for approval of Congress. But here, there’s a variation of the BOT which needs Congress’ imprimatur," Javier said during a briefing given by the BIR on the SICPA proposal.
He stressed the SICPA contract essentially involves raising revenues, which is the sole prerogative of Congress.
"You cannot raise revenues without Congress’ approval. Aside from the excise taxes that you’re collecting, you’ll be raising revenues. You cannot do it through the BOT," Javier said.
He also rejected claims that the Swiss firm’s tamper-proof stamp-tax technology called SICPATRACE System is "necessary" in combating smuggling and monitoring product withdrawals.
European Union countries Tuesday agreed to raise taxes on tobacco products sold in the bloc, in a bid to protect public health and boost government revenue.
Under the deal, starting in 2014, the minimum tax will be raised to 90 euros ($134.8) per 1,000 cigarettes, and no lower than 60% of their sales price. The current minimum rate is 64 euros per 1,000 cigarettes and no lower than 57% of the sales price.
EU countries have different tax rates on cigarettes and other tobacco products since many countries impose taxes higher than the bloc's minimum rate. Eastern European countries that joined the bloc in 2004 generally have lower rates than older EU members.
EU countries that don't yet tax tobacco at the minimum rate, or have only recently raised rates to this level, will have until 2018 to comply with the new tax level.
The number of tobacco smokers currently in Thailand has reached 14.3 million, the latest Global Adult Tobacco Survey revealed yesterday.
Meanwhile, the Public Health Ministry is considering a proposal to the Finance Ministry to increase the tax level on hand-rolled cigarette products after finding over 7.4 million people smoke this style of cigarette. The remainder smoke manufactured cigarettes.
The Global Adult Tobacco Survey is a national household survey launched in February 2007.
Sixteen countries, home to more than half the world's smokers and bearing the highest tobacco use, were involved in the study: Bangladesh, Brazil, China, Egypt, India, Indonesia, Mexico, Pakistan, Philippines, Poland, Russian Federation, Thailand, Turkey, Ukraine, Uruguay and Vietnam.
Thailand was the first country to complete and release its survey . . .
He said most cigarette manufacturers are now producing more smokeless cigarettes after noting an increasing trend in smokeless tobacco use among teenagers worldwide.
To reduce the number of hand-rolled cigarette smokers, Prakit has asked the government to increase the tax level on hand-rolled cigarette products and collect tax excise to 70 per cent of product price from the current rate.
Deputy Minister of Public Health Manit Nopamornbodee said he will consult with the Finance Ministry about increasing the tax level on hand-rolled cigarette products and ya nat - traditional medicine that contains hand-rolled cigarette products. . . .
Meanwhile, Thai Network Against Tabinfo Asia 2009, led by Dr Hatai Chitanont, has submitted an open letter to Deputy Finance Minister,Prasit Pattaraprasit asking him to withdraw from the tobacco industry event he is due to open on Wednesday at Impact Arena Moung Thontani Exhibition Centre.
The Philippines and Thailand were given a final opportunity until December 7 to comment and respond to questions before the WTO Dispute Settlement Panel is set to issue a ruling early next year over the countries cigarette tax dispute.
Philippine Ambassador to Geneva/WTO Ambassador Manuel AJ Teehankee relayed this in an email after the panel conducted the second substantive meeting last Nov. 4 to 6 in Geneva.
The panel hearing the (DS 371 Philippines versus Thailand on cigarette customs valuation), is chaired by H.E. Ambassador Roberto Acevedo, Permanent Representative of Brazil to the WTO, and its two additional members are Alvaro Hansen of Uruguay and Richard Gottlieb of Canada.
The panel heard rebuttal arguments and fielded searching questions on the facts, claims, and defenses presented by both parties since the first substantive meeting last June.
During the meeting, Teehankee highlighted issues of transparency, discrimination, and domestic protection in Thailand's regulatory regime
EU finance ministers will next week (11 November) try to agree an increase in the minimum rates of excise duty on cigarettes and other tobacco products.
The proposal under discussion would raise the minimum excise rate to €90 per 1,000 cigarettes, compared to €64 today. The legislation would also close loopholes that have allowed companies to market cigarettes as cigars and cigarillos, and some fine-cut tobacco as pipe tobacco. Tobacco companies have exploited these loopholes to benefit from lower tax rates applied to those products. . . .
It said that these variations were a stimulus to illegal cross-border trade, as it was often cheaper for people to buy cigarettes that had been smuggled in from other EU countries than to buy those legally for sale. The Commission said that this trade undermined government attempts to
State lawmakers at a public hearing heard claims of "lost" tax revenues ranging from tens of millions to billions of dollars from untaxed cigarette sales on Indian reservations.
While none of the witnesses backed up their claims with substantive evidence, the Seneca Nation of Indians presented officials with a three-inch thick document on its treaty rights, legal history, and an economic study by a Harvard economist that pinpointed how - and how much - the nation's tobacco-based economy benefits the state.
The hearing, which was chaired by Sen. Craig Johnson, D-N.Y., was an all day - and sometimes heated - event at Manhattan Community College Oct. 27. The aim was to investigate why the state has failed in its attempts to collect cigarette taxes from reservation cigarette sales to non-Natives.
J.C. Seneca, a Seneca Nation tribal councilor, testifying on behalf of the nation, addressed that question at the beginning of his testimony.
"The answer to that question, put simply, is that your government has no authority to do so,