http://www.tobacco.org/newsfeed/category/tax.rss Latest top tobacco news headlines en-us http://www.kyivpost.com/news/opinion/op_ed/detail/53248/ http://tobacco.org/news/293046.html 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. Kyiv Post news@kyivpost.com (Konstantin Krasovsky ) Ukraine Fri, 20 Nov 2009 05:00:00 GMT http://www.jaxobserver.com/2009/11/19/tobacco-tax-estimates-on-target/ http://tobacco.org/news/293038.html Money flowing into the state from the higher cigarette tax remain on target, with economists Wednesday sticking by earlier forecasts that a dollar per pack boost enacted this spring will pull in $850 million this year. The cash-flow is strong even as cigarette sales fell with higher prices – particularly in North Florida counties adjacent to states with cheaper smokes. “I think the legislation is working exactly as we’d hoped,” said Rep. Jim Waldman, D-Coconut Creek, who sponsored the cigarette tax hike last spring. “Not only are we bringing in more revenue, we are reducing consumption.” Waldman downplayed the impact of cross-border sales. But statistics compiled by the Department of Business and Professional Regulation, which tracks sales, show the biggest declines are in border counties – raising questions about whether people are smoking less, or just traveling out-of-state to get cigarettes. Jacksonville Observer Thu, 19 Nov 2009 05:00:00 GMT http://www.miamiherald.com/news/southflorida/story/1342975.html http://tobacco.org/news/293027.html A new tobacco tax is doing just what its proponents envisioned: reducing cigarette sales while fattening state coffers. Cigarettes sales are down 27 percent in Florida during the last four months, thanks to a new $1-a-pack tax designed to balance the budget and cut down on smoking. But despite the drop in sales, tobacco-tax collections in Florida are high and holding steady. That's because state economists accurately factored in the decrease in sales of smokes when they initially forecast the revenue from the surcharge that went into effect July 1. The new tax, which helps fund Medicaid, will raise $881 million this year and $907 million the next, the economists forecast Thursday when they analyzed cigarette-sales data. Miami Herald mcaputo@MiamiHerald.com (MARC CAPUTO Herald/Times Tallahassee Bureau) Thu, 19 Nov 2009 05:00:00 GMT http://www.abs-cbnnews.com/business/11/19/09/cigarette-stamps-proposal-not-done-deal-teves http://tobacco.org/news/293011.html The proposal of Swiss firm SICPA Product Security SA to provide security stamps on cigarettes is not a done deal, Finance Secretary Margarito Teves said yesterday, assuring lawmakers that there was nothing final yet. "It must be clarified that the SICPA (proposal) is merely an unsolicited proposal under the BOT (Build-Operate-Transfer) Law. It's not a done deal yet," Teves said. He said that even if the Bureau of Internal Revenue (BIR) is already in negotiations with SICPA for its stamp-tax technology project, it would still be sent back to the National Economic and Development Authority (NEDA) for its board approval and subsequently, be subjected to a "Swiss Challenge." "Processes must be observed before a decision on SICPA is made," he told reporters yesterday. ABS-CBN Broadcasting Corporation feedback@abs-cbnnews.com (Iris C. Gonzales, The Philippine Star) Philippines Fri, 20 Nov 2009 05:00:00 GMT http://www.malaya.com.ph/11202009/edit.html http://tobacco.org/news/293010.html A SWISS company is proposing to put in place a system where tax stamps will be affixed on every pack of cigarette and every bottle of liquor to raise more revenues for the government. The company, SICPA, wants to make it appear affixing stamps on highly taxable goods is a fool-proof way of curbing smuggling and tax evasion by manufacturers. The reality is that it is selling a fraudulent bill of goods. It’s only about 20 years now that cigarettes and liquor have been free of the green BIR stamp on every pack . . . SICPA claims its stamps cannot be counterfeited. In this land of fake peso bills, diplomas, passports and even visas, does SICPA really want us to believe its stamps could not be faked? Even a reasonable facsimile would do as in the previous experience with BIR stamps. The BIR stamps, it will be recalled, were also printed in security paper with watermark. A close look at the genuine BIR stamps and the fakes would show which was which. But to repeat, this did not discourage the smugglers. But the biggest objection to the SICPA proposal is that it will raise prices by an estimated P1.50 a pack, a cost that will be passed on to consumers. Out of that P1.50, about P1 will go to the government and P0.50 to SICPA. Given that kind of sharing, why does not the government simply increase the specific tax on cigarettes across-the-board by P1 a pack? The government collects the same revenues. The consumer gets a P0.50 break. The only loser would be SICPA and, presumably, its sponsors who are ramming the proposal down the throat of the BIR. Malaya Philippines Thu, 19 Nov 2009 05:00:00 GMT http://www.ksro.com/Programs/KSROAMNews/Interviews/blogentry.aspx?BlogEntryID=10071701 http://tobacco.org/news/293008.html A proposed state initiative would increase cigarette taxes by 1 dollar a pack to provide more than 500 million dollars a year to prevent and cure cancer. Cigarette tax proposals in California tried before and failed, but the question, will this proposal help or hurt the bottom line...smokers? Guests: For the Pro-Tax side, Paul Knepprath, an executive with the American Lung Association of California, which underwrote the survey... AND Grant D. Gillham, a Government Affairs Consultant in California for the nation's oldest tobacco company, Lorillard Tobacco Company. 1350 KSRO reneebakos@maverick-media.ws Wed, 18 Nov 2009 05:00:00 GMT http://www.unionleader.com/article.aspx?headline=Tobacco shakedown%3A It's not 'for the children'&articleId=2f1cf37f-4d55-476e-9263-64642ccd2c71 http://tobacco.org/news/293006.html When the state attorney general fabricates an allegation to justify charging a person with criminal activity, everyone in the state ought to take note. Attorney General Michael Delaney is pursuing a case against Tobacco Haven, a roll-your-own tobacco shop in Brookline. According to the Attorney General's Office, Tobacco Haven owes the state a whole bunch of back taxes on cigarette tobacco. Tobacco Haven says it doesn't because the tobacco in question is for pipes, not cigarettes. Cigarette tobacco is taxed; pipe tobacco is not. . . . The "for the children" line is deployed every time government goes after tobacco users. From the industry settlements in the 1990s to the massive increases in cigarette taxes in the last few years, states (New Hampshire included) have tried to justify soaking tobacco dealers and users by claiming that their revenue grabs were "for the children." But it's never for the children. It's always for the revenue. Delaney's attempt to demonize these tobacco shop owners is an abuse of authority. His boss, Gov. John Lynch, should make clear that he won't stand for such abuses in the future. Manchester Union-Leader Thu, 19 Nov 2009 05:00:00 GMT http://savannahnow.com/news/2009-11-19/deal-says-he-would-sign-cigarette-tax-increase-bill-if-elected-governor http://tobacco.org/news/292948.html U.S. Rep. Nathan Deal says he'd sign a bill raising the state cigarette tax $1 a pack if he's elected governor next year. Campaigning this week in Savannah, Deal said the bill deserves consideration, but added he probably wouldn't push for its passage. The Gainesville lawmaker's comments are the closest any GOP candidate for governor has come to backing the proposal. The proposal by state Rep. Ron Stephens, R-Savannah, has been opposed by the GOP majorities in the House and Senate. But some experts say it may get another look when the legislature reconvenes Jan. 11 and tries to grapple with a worsening budget crisis. Savannah Morning News Thu, 19 Nov 2009 05:00:00 GMT http://www.greenvilleonline.com/article/20091118/OPINION/911180344/1004/NEWS01/Tax-hike-would-reduce-smoking http://tobacco.org/news/292917.html There were more adult smokers in the United States in 2008 than in the year before, the first time in nearly 15 years that the rate of smoking has increased , according to a survey by the Centers for Disease Control and Prevention. It's a troubling trend for an activity that is the No. 1 most preventable cause of cancer. . . . Yet, in South Carolina, state lawmakers continue to reject the most effective way to encourage people to quit this harmful and expensive activity: raising the cigarette tax. South Carolina's cigarette tax stands at 7 cents a pack. Seven cents. That's by far the lowest cigarette tax in the nation, and it has not been raised in more than three decades. . . . The good news is lawmakers have an opportunity to revive the bill when they convene in January. This is the second of a two-year legislative term, and the Senate can approve the compromise when the session begins. Whether they do that, or come at the tax increase with a new bill, lawmakers need finally to decide this year to raise this state's abysmally low cigarette tax. Greenville News Wed, 18 Nov 2009 05:00:00 GMT http://www.sun-sentinel.com/news/palm-beach/fl-cigarette-tax-20091116,0,2957274.story http://tobacco.org/news/292898.html 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 Rep. Jim Waldman, D- Coconut Creek, a cigarette tax champion. "If I could, I'd raise it another dollar." Sun-Sentinel jhafenbrack@sun-sentinel.com (Josh Hafenbrack, Sun Sentinel Tallahassee Bureau ) Tue, 17 Nov 2009 05:00:00 GMT http://www.contracostatimes.com/bay-area-news/ci_13809354 http://tobacco.org/news/292897.html Fresh out of the gate, a ballot measure to raise cigarette taxes for cancer research proposed by former state Senate President Pro Tem Don Perata is taking heat from early childhood education advocates who rely on tobacco taxes, too. Perata -- a 2010 Oakland mayoral candidate -- had hoped this California Cancer Research Act, launched at a news conference Monday, would garner good publicity and widespread public support as a war on Big Tobacco. Instead, some say, it could end up facing united opposition from tobacco companies and the education advocates who warred with them 11 years ago. Contra Costa Times jrichman@bayareanewsgroup.com ( Josh Richman Oakland Tribune ) Wed, 18 Nov 2009 05:00:00 GMT http://www.goupstate.com/article/20091118/ARTICLES/911181003/1128/OPINION?Title=A-moving-target&tc=autorefresh http://tobacco.org/news/292890.html When the federal government raised the tax on the loose tobacco people use to roll their own cigarettes a staggering 2,000 percent, companies stopped selling "loose tobacco." Smokers stopped buying it. Very little of the projected tax revenue of $35 million per month appeared. Yet smokers still roll their own cigarettes and still legally buy the ingredients. Pipe tobacco is taxed at a rate of $2.83 per pound. Loose cigarette tobacco is now taxed at $24.78 per pound. . . . Again and again we see that taxes meant to change the behavior of the taxed backfire. They rarely raise the revenue their proponents promise, generally don't cause people to act as predicted and often create unintended consequences. The fairer a tax is, the harder it is to evade. . . . Seemingly incapable of learning, the federal government is now looking to set stricter legal distinctions between pipe and cigarette tobacco in an attempt to collect its money. Unmentioned is the issue of why the tax on one should be 10 times the tax on the other. Perhaps government policymakers think pipes are cool and intellectual, and home-rolled cigarettes are just uncouth. If so, that's a poor rationale for tax policy. Spartanburg Herald-Journal Wed, 18 Nov 2009 05:00:00 GMT http://www.trend-news.com/default.asp?newsid=7133 http://tobacco.org/news/292858.html European Union Finance Ministers have agreed to introduce a significant increase in the minimum level of excise tax on cigarettes from 2014 in an effort to reduce the bulk-buying of cigarettes in cheaper eastern European countries, in a move which has been led by the EU's Swedish Presidency. In effect and from 2014, the minimum tax on a carton of 1,000 cigarettes (or loose packs to the same equivalent) across all 27 EU member states will be increased to E.90 ($134.4) per 1,000 cigarettes and no lower than 60% of the sales price. A transitional period will apply for countries that have only recently or yet to raise prices to those rates. in effect, this means that smokers will still have access to cheaper cigarettes until January 1, 2018, in Bulgaria, Estonia, Greece, Hungary, Latvia, Lithuania, Poland and Romania. TREND-News.com Europe Tue, 17 Nov 2009 05:00:00 GMT http://www.csnews.com/csn/news/article_display.jsp?vnu_content_id=1004043488 http://tobacco.org/news/292844.html State Senator Carl Kruger is working to close the state's deficit as Senate Finance Committee chairman, and recently held a press conference urging Gov. David Paterson to collect taxes on cigarettes sold on Native American reservations to non-Native Americans. "We have to ask everybody to share both the benefits and the burdens of being a New Yorker," Kruger was quoted saying at a press conference, by the New York Daily News. "Part of being a New Yorker is paying taxes that are assessed upon you." He added: "Today is the day that we draw the line in the sand, and I say that we should collect before we cut. We should collect the taxes due before we cut the services. While we negotiate we should be collecting. Anything short of that is denying the rule of law." Kruger was joined Democratic Sen. Ruben Diaz Sr., according to the report. By collecting the cigarette taxes, the state's general fund could see a "cash infusion" of $135 million in December and $1.6 billion a year, according to Kruger. Following the press conference, the New York Association of Convenience Stores (NYACS) President James Calvin voiced his support of Kruger's efforts. Convenience Store News Tue, 17 Nov 2009 05:00:00 GMT http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20091117005192&newsLang=en http://tobacco.org/news/292808.html After a surge through the second quarter, aggregate customer satisfaction as measured by the American Customer Satisfaction Index (ACSI) stalls. The ACSI loses 0.1% for the third quarter, which brings the Index to a score of 76.0 on a 100-point scale. . . . Cigarettes: New Federal Taxes Make It Costly to Smoke A new tax increase on cigarettes, from 39 cents a pack to $1.01, has led to a sharp downturn in customer satisfaction, falling 7.7% to 72, an all-time low. No company is immune from the effects of the new tax. Philip Morris drops 9% and Reynolds American 8%, both to 72. "In the past, a 10% price increase in tobacco products contributed to about a 4% decline in consumption," Fornell said. "The ACSI model suggests the most recent tax hike will have a similar effect." Customer satisfaction with tobacco products, largely made up of cigarettes, has never quite matched other nondurable products in customer satisfaction. Price has been an issue for a long time, and it also seems that there might be less differentiation than the advertising budgets imply. Business Wire cbutsunturn@kearnswest.com Tue, 17 Nov 2009 05:00:00 GMT