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Archive for the ‘Cigarette Tax’ Category

Tobacco Market, New Cigarette Brands Changes

Wednesday, March 7th, 2012

cheap dunhill cigarette“The first phase is to get the government to change the excise tax. Once that’s finished, the second phase is to complete investments in farm, factories and distribution,” BAT General Manager James Lafferty told BusinessWorld at the sidelines of the company’s launch. “We are working on a long-term vision in near-term business cycles, so we’ll work on the timelines and figures when we get to that point,” he continued. The company, which handles cigarettes Lucky Strike, Dunhill cigaretes and cigarettespub.biz/vogue, already spent P1 billion to re-establish its presence in the local market while advocating for the Finance department-backed House Bill (HB) 5727 which abolishes the multi-tiered tax system in favor of a unitary model.

Under the current system, cigarette brands that have been around the local market since 1996 or earlier are slapped with tax rates based on retail prices for that year, while brands that arrived thereafter are charged based on current retail prices which have risen significantly due to inflation.

Consequently, brands pegged at 1996 prices are only taxed P12, while newer entrants pegged at recent, higher prices are taxed P28.30.

The uneven playing field created by the 1996 tax structure thus led to the pullout of BAT cigarettes in 2009.

“We are subsidizing the price of our cigarettes right now until the new excise tax system is in place,” Mr. Lafferty said.

But such a dire measure to keep their cigarettes affordable is only meant to keep the firm in the country long enough to fight for a more leveled out playing field.

“We don’t know whether we’ll stay in the Philippines or not. There are 40 possible scenarios on the excise tax reform, and we haven’t planned for each of them,” the executive explained.

In the meantime, the firm is focused on standard strategies for marketing the three BAT cigarette brands through point-of-purchase interactions with smokers in bars, clubs and convenience stores.

“We are willing to work within the confines of the law,” Mr Lafferty added, commenting on the advertising restrictions placed on tobacco firms in the Philippines.

“We acknowledge that the product poses health risks. It’s part of the game,” he said.

French Authorities Urge Cigarettes Taxes Increase

Wednesday, February 29th, 2012

cheapest kent cigaretteIn a recent opinion, the French High Council for Public Health (HCSP) has called for the taxes recently levied on smoking products to be increased and harmonized to reduce the prevalence of smoking habit in France. In its release, the HCSP cites three key observations, which have now led the High Council to issue an opinion on the taxation of tobacco products. The High Council’s first observation is that smoking cigarettes in France is currently on the raise, not only among the population in general, but also among young individuals. Its second observation is that the cost associated with the effects of smoking on health is currently estimated at over EUR47bn (USD63bn) a year. The final observation is that the government’s most effective tool against smoking, namely the taxation of tobacco products, has not been used since 2004, when the last tax rises were introduced.

Based on these findings, and considering the constraints that the impact of cigarettes consumption has on the income of those less well off in France, as well as contraband and cross-border purchases, the High Council has recommended that the government increase the taxes on all tobacco products, in order to increase the prices.

The HCSP has also advocated that all tobacco products in France (cigarettes, cigars, fine tobacco) be taxed at the same rate.

Highest Cigarettes Taxes in New York City

Thursday, February 23rd, 2012

tax free marlboro cigaretteNew York State has the most expensive cigarettes in the World. For a while the state’s Indian tribes explained that they could sell smoking brands without paying any tax, and the state never thought that it will have such a problem like increased cigarettes taxes.

The new idea is that they can import tobacco products from the Carolinas and then make the cigs on trival land and sell them cheaper. Andrew Cuomo’s administration sustained that this is  unlawful, but unfortunately he didn’t do nothing to stop this smuggling.

This is a recall that while the “Laffer Curve” does not characterize cigarettes taxation in the United States as a whole, it maybe does refer to tobacco taxes, the most high taxes in the world. The combination of the new success in forcing people to stop smoking and success in attempting smokers to come up with new ways for to avoid paying the huge taxes has attacked state incomes.

In public health terms, that’s all fine, but for a time higher tobacco prices were a very rare form of politically satisfactory revenue-raiser and that’s increasingly very difficult to make work.

International Conference and Cigarettes Tax Hike, European Government Decision

Monday, February 20th, 2012

tax free hilton cigaretteAn important international meeting take place in Dublin today calling on European governments to set even higher taxes on all smoking products. Presented by the Irish Heart Foundation and the Irish Cancer Society, the European Smoke Free Partnership is urging for cigarettes taxes to be used as the “main weapon” in decreasing smoking rates.

The TobTaxy workshop intends to collect a “powerful anti-smoking group of NGOs and senior public employed” to support for such big taxes which its adherents believe will limit the inhabitants death caused by smoking habit.

International attest proves that tobacco tax hikes are the most effective and new method of reducing cigarettes smoking rates, declared Michael O’Shea, main chief of the Irish Heart Foundation.

The charity’s own research showed that a €1 increase in tax on a 20-package of cigs could result in about 30,000 people quitting smoking tobacco in Ireland.

Irish Cancer Society CEO John McCormack also explained that it is critical tobacco tax is seen essentially as a public health outlet.

The main link between tax hikes and smuggling cigarettes rates, which is spread by the cigarette makers, will also be debated throughout the conference.

Both the Irish Cancer Society and Irish Health Foundation believe the link to be flimsy or even false.

“We really need to increase the tobacco tax and if the tobacco industry thinks that this new law will increase black cigarettes market sales then they can any moment reduce their income margin to keep smokes price lower,” reported McCormack.

 

Crisis Is Efficient for Cigarette Smugglers

Friday, February 17th, 2012

cheapest hilton cigaretteLike a lot of Spaniards, Alicia García has been obliged to make big sacrifices because of the country’s crisis. The 32-year-old cosmetician started to smoke only a pack of cigarettes per day, but now she smokes only five cigs.

“Unfortunately smoking habit has become too expensive for me. Now I should think twice before I decide to light my cigarette,” declared García.

Because of higher and excessive taxes, Spain’s 10 millions smokers become fully target to cigarettes smugglers. Unlawful tobacco imports now account for 7 percent to 8 percent of cigarette and tobacco sales, in comparison with almost zero a year ago. The number of cigarette packages sold in Spain drop to  17 percent last year, declared the Tobacco Market Commission.

“Smuggling and illegal tobacco products, which had been extirpated since 1993, came back heavily last year,” reported Jaime Gil-Robles, corporate affairs director at Altadis, which has one-third of the €11.3 billion ($14.8 billion) Spanish tobacco market. Only in one week Spanish authorities grasped more than 1 million illicit packages of cigs.

The smuggling problem is not limited to Spain only. French authorities also seized 462 tons of contraband tobacco products last year, a 33 per cent increase from 2010. Much of that load was bound in the U.K. and Ireland, which have the highest cigarettes taxes in the European Union. For example in Dublin, a package of Marlboro cigs cost €9.10, compared with €6.20 in Paris.

Electronic Cigarettes Sales to Minors, Hawaii News

Monday, February 13th, 2012

karelia cigarettes onlineThe Hawaii state legislature is debating a bill that would ban the sale of electronic cigarettes to minors and impose the 70% tobacco tax on the devices, according to a report by the Hawaii Reporter.

All of the testimony favored a ban on sale of the products to minors, but more than 1,000 individuals and companies protested imposition of the tobacco tax on e-cigarettes, the report said.

State Health Department director Loretta Fuddy told members of the Senate Ways & Means Committee, “There is very little known about the long-term health effects of the use of e-cigarettes or the vapors given off. Recent studies have shown that within one liquid nicotine cartridge there is enough nicotine to cause serious illness or even death.”

Cory Smith, president of local retailer Volcano Fine Electronic Cigarettes, said the product actually helps tobacco smokers quit their habits and produces none of the second-hand smoke issues associated with traditional tobacco cigarettes.

“The tobacco tax is aimed at deterring tobacco use and generating revenue to pay for health care costs associated with tobacco-related harms,” Smith testified. “Since the research thus far indicates that e-cigarettes show promise as a means to deter tobacco use and thereby reduce the cost of tobacco-related harms, it makes no sense to subject e-cigarettes to the tobacco tax.”

Taxing e-cigarettes at the 70% tobacco rate would shut down his business and drive customers to the internet to obtain the devices from out-of-state sources, he added.

“The general cost of a fully functioning electronic cigarette kit is upwards of $70,” Smith testified. “Levying a 70% tax on all of these items would virtually guarantee that purchasers will go out of state, or, worse yet, return to tobacco cigarettes.”

Fuddy said more scientific study must be undertaken of e-cigarettes. “We don’t feel that from a Department of Health perspective that the science is really in yet. This is a rather new product,” she said.

Also testifying in favor of the measure were the state Tax Department, the Honolulu Police Department and various health organizations including the American Cancer Society and the Coalition for a Tobacco-Free Hawaii, said the report.

Coalition executive director Deborah Zsyman told the committee that some sales of e-cigarettes appear aimed at underaged customers.

“Often the cartridges are candy flavored, making them enticing to youth. Currently, they are readily available at mall kiosks and small shops throughout our state and are priced as low as $10 for the disposable varieties,” said Zsyman.

The coalition’s concerns about e-cigarettes center on sales to minors and on the lack of scientific evidence on the health effects of the devices, the report said.

“I think if we find there’s evidence that this is really a product that is safe and does help people quit smoking, then, yes, we’d be supportive of it,” Zsyman testified.

California New Tax On Smokes

Friday, February 10th, 2012

tax free winston cigarettesThe study found that the new tax would have a significant effect on the state’s overall economy because Californians would smoke less and spend their money in other ways.

The initiative, the California Cancer Research Act (CCRA), is on the statewide June 5 ballot. If the measure is approved, state cigarette taxes would rise by $1 a pack, generating an estimated $855 million a year for anti-smoking education programs, medical research, and tobacco law enforcement.

“The primary impact to the California economy, besides the effect on health care, is that people will smoke less and send less money out of state,” said study author Stanton A. Glantz, PhD, a professor of medicine at UCSF and director of the Center for Tobacco Control Research and Education based at UCSF.

Currently, approximately 80 percent of money spent on tobacco products is exported to out-of-state tobacco manufacturers and farmers. No tobacco is grown in California and no cigarettes are manufactured here.

Under the legislation, 60 percent of funds generated by the new tax would go to cancer research and to address other tobacco-related diseases, 20 percent toward tobacco cessation and prevention programs, and 15 percent toward facilities and equipment for health services and research. The remainder would go to law enforcement to reduce cigarette smuggling and tobacco tax evasion, and to administer the tax.
The state’s independent Legislative Analysts’ Office has calculated that the new tax could save more than 100,000 people from smoking-related deaths.

On September 15, 2011, the UC Board of Regents endorsed the initiative. UC campuses are allowed to use their resources to objectively evaluate a ballot measure’s impact and to provide educational materials and information.

Glantz’ report of the analysis, which estimates both the direct and indirect effects of the initiative on employment and economic activity in California, uses standard estimates of jobs created and economic multipliers categorized by economic sector from the U.S. Department of Commerce.

If the new tax is approved, the study reports, it would cause some loss of retail jobs due to fewer retail sales — a loss that would be more than offset by a projected 12,000 new jobs in the California economy as a whole as well as in medical research, construction and other activities directly funded by the CCRA.
Altogether, the CCRA would generate a projected $1.9 billion in total economic activity.

A previous UCSF study co-authored by Glantz and James Lightwood, PhD, associate adjunct professor in the UCSF School of Pharmacy, estimated the ballot measure could save California up to $32 billion in health care costs over the next five years. Without the tax, the study concluded, the state’s tobacco control program would become less effective over time because inflation is eroding the five cents per pack currently allocated to tobacco control activities.