Tobacco Asia

16 tobaccoasia FRONT PAGE NEWS 卷首新闻 Purbaya said, explaining that the risk of layoffs influenced the decision. He made the announcement after meeting with GAPPRI (the Indonesian cigarette manufacturers association, which had urged the government to keep rates steady. The country, which has one of the world's highest smoking prevalence rates, also left tobacco excise rates unchanged this year. Officials noted that previous annual increases—implemented almost every year since 2014—had failed to significantly reduce cigarette consumption and instead pushed smokers toward cheaper or illegal alternatives. As part of its broader strategy, the government plans to expand tobacco product industry zones (KIHT) to additional regions, aiming to formalize illegal producers and bring them into the taxed, regulated market. Purbaya said this approach would help boost tax revenue while supporting employment. The government is also preparing a new regulation to tackle the rising circulation of illegal cigarettes, particularly products sold without excise stamps, deputy minister of industry Faisol Riza told Antara. Data from the Industry Ministry shows illegal cigarettes accounted for 3.03% of total cigarette volume in 2019 and rose to 6.9% by 2023, mostly machine-rolled clove cigarettes (sigaret kretek mesin/SKM). Riza said the surge in untaxed products has hurt legiti- mate producers, leading to idle rolling machines, reduced production, and layoffs that affect workers' welfare. Many Indonesian smokers are highly price-sensitive, driving demand for cheaper illegal options, he noted. "The business climate can only improve if all parties, including the public, work together to eradicate the circulation of illegal cigarettes," Riza added. Illegal tobacco products continue to grow, threatening state revenue by tens of trillions of rupiah [billions of US dollars]. Challenges include unstamped cigarettes as well as counterfeit, misused, or reused excise stamps, which have weakened the formal tobacco industry, reduced production, and harmed workers' livelihoods. Australia's Black Market Tobacco Crisis Australia's illicit tobacco market has "exploded" and now represents the country's biggest public health threat, health minister Mark Butler has warned, as organized crime increas- ingly dominates the trade. Speaking on Adelaide's FiveAA radio, Butler said criminal gangs were spreading illicit tobacco from Melbourne nationwide. He highlighted the broader impacts of the black market, including violence, arson, and funding of other criminal activities such as sex and drug trafficking. "From a health minister's perspective, it is now the biggest threat to our most important public health program," he said. The federal government committed an additional AU$156.7 million in March to combat the illegal tobacco trade following a surge in smokers abandoning legal products. Cigarette prices have risen sharply over the past decade due to excise increases, with the duty on a 20-pack climbing from AU$10.62 in 2015 to AU$28.06 today. Yet federal budget figures show falling revenue, suggesting a shift to illicit products. The Australian Medical Association recently warned that illegal sales may have caused a rise in smoking rates, reversing a long-term decline. NSW premier Chris Minns criticized repeated tax hikes for fueling the black market and organized crime. "Smoking rates have increased … this would be the only tax in the world where it's doubled but the rate of revenue collection has halved. Something is obviously happening here," he said, adding that federal ministers had not responded to his concerns. Butler rejected claims that excise increases were to blame, pointing instead to global oversupply and cheap illicit produc- tion. Criminal gangs reportedly produce cigarettes for as little as AU$2 per pack, making excise reductions ineffective in outpricing illegal products. He said enforcement remained the key challenge. Opposition figures slammed the government for failing to address the problem sooner. Shadow health minister Anne Ruston said the government had "sat on its hands," while shadow assistant treasurer Pat Conaghan called it "common sense" to rethink excise policies. Conaghan added, "How much longer will the government refuse to admit they got this wrong? How many more billion-dollar budget shortfalls and violent gang incidents will it take before ministers admit that hiking excise in the middle of a black market boom is only making things worse?" PMI Urges Philippines to Ease Smoke-Free Ad Rules Philip Morris International (PMI) considers the Philippines one of the most progressive countries when it comes to accepting alternatives to cigarettes. However, its top executive stressed that easing communication restrictions remains key to achieving a smoke-free future. PMI c.e.o. Jacek Olczak said the Philippines has made strong progress in moving away from cigarette smoking and its related health risks. He pointed to the Vape Law, passed in 2022, as a milestone that legally recognized vapor, novel tobacco, and heated tobacco products. Still, Olczak noted that the law stops short of acknowl- edging these products as better alternatives due to strict limits on advertising and public communication. Republic Act No. 11900, which governs the policy, restricts promotions outside retail points, promotional merchandise, and general television advertising, among others. "On one hand, government is saying, okay, I got you, I will allow these products to Filipinos, that makes sense, but then I will not talk about it. So now how will Filipinos learn that these products are better?" Olczak said in an interview. "The Philippines could do better than this, but people are afraid because there is this thinking that people shouldn't smoke. I fully agree with you, people shouldn't smoke, but the reality is they do," he added. PMI continues to pivot toward smoke-free technologies such as heated tobacco, oral nicotine pouches, and e-vapor. Olczak said if authorities remain firm on keeping promotional restrictions, the "ideal scenario" would be for the government itself to run promotional campaigns on smoke- free products. He emphasized that communication plays a crucial role in helping smokers make informed choices. "You need to communicate, you need to talk about this," he said. "If I am not told it's better for me, how should I know it?"

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