Tobacco Asia

Volume 19, Number 1

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14 tobaccoasia FRONT PAGE NEWS 卷首新闻 ering e-cigarette bills in the current legislative session; several of them would limit local action, although some impose additional regulations such as requiring childproof packaging. Minnesota is currently the only state to tax e-cigarettes. A tax in North Carolina is scheduled to take effect in July. This February, Michigan governor Rick Snyder, a Republican, vetoed a bill banning e-cigarette sales to minors because it would not have regulated them as tobacco products. But many lawmakers say they are trying to strike a balance, protecting kids without crushing a fledgling industry. Michigan State Sen. Rick Jones, a Republican, insists only adults should be able to use e-cigarettes. He is convinced they are no different than nicotine patches or gum and should be taxed the same way, with a sales tax. "They are simply a nicotine delivery device," says Jones, who was disappointed that Snyder vetoed Michigan's bill. "They are not tobacco cigarettes. I cannot support taxing them that way." Ohio State Rep. Stephanie Kunze, a Republican, says she can't see imposing a "sin tax" on e-cigarettes before science has shown whether they're harmful. UK No More Branding The UK government announcement that it wants to pass anti-tobacco legislation before the general election in May could spell the end of branded cigarette packs for the English market. Cigarettes and hand-rolled tobacco would have to be sold in packets that look the same if the law passes. The new legislation would apply in England and it would then be up to the parliaments of Scotland, Wales, and Northern Ireland to pass it. Under the proposed regulations, packets would have mandatory colours — the current proposal shows a brown packet on the outside and white on the inside. The brand and product names would be the only text that the tobacco companies would have the right to add. The new packets would also have text- and image-based health warnings. "Having considered all the evidence, the Secretary of State and I believe that the policy is a proportionate and justified response to the considerable public health harm from smoking tobacco. The Chief Medical Officer has confirmed this view," Britain's public health minister Jane Ellison said. Ellison also announced the ban on smoking in private cars with children will come into force on October 1, 2015. Although the government is backing the legislation, there have been members of the Conservative party who have opposed the change in the past. . South Africa Illicit Trade Harmful The Tobacco Institute of Southern Africa has called on South Africans to join the government and other stake- holders in the fight against illicit trade in the country at the Illicit Trade Confer- ence held in Bantry Bay, Cape Town. More than 100 delegates from 23 African countries met to collaborate on efforts to address the scourge of the illicit tobacco trade in sub-Saharan Africa. The objective of the conference was also to build a foundation for close collaboration between affected countries in the region as well as their law enforcement, customs, treasury, and revenue departments. "Illicit syndicates are selling their products in the country and the region," said the Institute's c.e.o. Francois van der Merwe. "Illicit trade is affecting investment in South Africa and the region because no investors want to invest in these countries." Van der Merwe also said they were committed to working with the govern- ment and the region to combat the problem. More than R20 billion (US$ 1.75 billion) in tax revenue had been lost since 2010 and the government has lost R2.6 billion in tax to illicit cigarettes this year. "Illicit trade and the problem fuels organized crime," said Europol senior specialist Howard Pugh who was invited to the conference to offer "a UK perspective on the matter". About 60% of illicit cigarettes are manufactured in the country, while the rest were smuggled from other African countries. South Korea Price Hike Imminent The parliament of South Korea has recently approved an 80% hike in the price of cigarettes, a move, the parlia- mentarians say, aimed at curbing consumption. A jump from KRW2,500 (US$2.25) per pack to KRW4,500 from January 1 was part of the 2015 budget. According to the country's Health Ministry, South Korea has one of the lowest prices of cigarettes in the Organization for Economic Co-opera- tion and Development (OECD) group of countries, but some of the highest male smoking rates among OECD members – 43.7%. The government hopes the price hike will bring the figure down to 29% by 2020. The Korean government also won approval to link cigarette prices to consumer price rises so that cigarette prices could move with inflation growth. Previous measures to try and curb consumption have included smoking bans in public places, pictures of the harm caused by smoking on packaging, and a ban on tobacco ads in retail stores. Australia Plain Packs Drive Sales New evidence has emerged showing a marked increase in youth smoking and tobacco smuggling rates in Australia, following the introduction of plain packaging two years ago. Remarkably, the volume of cigarettes sold also went up for the first time in decades. Plain packaging was introduced in Australia on December 1, 2012. It gave control over tobacco product packaging to the government. The legislation banned the use of all branding, colors, or trademarks, replacing the lot with

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