International - TobaccoIntelligence

4th February 2025: China: The Ministry of Finance has announced retaliatory tariffs on US imports. A 15% tariff will apply to coal and liquefied natural gas and a 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement cars and pickup trucks. Unlike the latest US tariffs, China's new tariffs will not directly affect tobacco and nicotine products.
4th February 2025: India: The Union Budget 2025-26 has introduced a track-and-trace mechanism under the Central Goods and Services Tax Act, 2017, to curb tax evasion and illicit trade. The Tobacco Institute of India welcomed the move, stating it will help enforcement agencies combat illegal cigarette sales and support the legal industry. The mechanism will require unique, secure, and non-removable identification marks on packages to enhance monitoring. Illicit cigarettes reportedly make up a quarter of the Indian market, causing an estimated INR21,000 ($240) loss in annual tax revenue and harming domestic tobacco farmers. New legal provisions, including penalties for violations, will ensure effective implementation and enforcement.
4th February 2025: India: The finance minister, Nirmala Sitharamant, announced that there will be no increase in the tax rates for tobacco products in the state budget for 2025-26. Anti-tobacco activists have protested as they believe a tax increase could fund de-addiction programmes, health services and other social welfare schemes.
4th February 2025: Philippines: Yesterday (3rd February), the House of Representatives (lower chamber of parliament) approved House Bill 11360, which aims to rationalise excise tax rates on tobacco and vaping products, in the third and final reading, media reports. The bill imposes structured tax increases: a 2% increase every even-numbered year starting in 2026 and a 4% increase every odd-numbered year beginning in 2027, continuing until 2035. The aim is to curb revenue losses from illicit trade. We understand that the Senate would need to approve the bill next.
4th February 2025: Philippines: Senator Win Gatchalian, chair of the Senate (upper chamber of parliament) Ways and Means Committee, has criticised online shopping platforms for enabling the sale of illicit tobacco and vaping products. The senator urged the platforms to improve their product filtering to prevent these items from reaching youth.
4th February 2025: Philippines: Yesterday (3rd February), the House of Representatives (lower chamber of parliament) approved House Bill 11286 – which seeks to strengthen excise tax administration and eliminate revenue losses from the illicit trade of tobacco and related products – in the third and final reading media reports. The bill introduces a mandatory track-and-trace system for the manufacturing, importation, storage, removal, distribution and sale of all tobacco and related products, including vaping products. We understand that the bill will now need to be approved by the Senate.
3rd February 2025: Uzbekistan: According to the resolution of the Cabinet of Ministers “On measures to introduce the ‘social card’ system in social support of the population”, from 1st February, it is prohibited to pay for alcoholic beverages and tobacco products, including e-cigarettes, with social cards (social payments), as well as to accept such payments for these products by business entities, media reports.
31st January 2025: Canada: An Ontario judge has started reviewing arguments on whether to approve an historic $32.5bn settlement, in which three major tobacco companies would compensate provinces, territories and former smokers. The agreement, reached with creditors by Japan Tobacco International (JTI)-Macdonald, Imperial Tobacco Canada, and Rothmans, Benson & Hedges, received unanimous approval by the creditors in a mid-December vote. Ontario superior court chief justice Geoffrey Morawetz will hear submissions from the companies and other involved parties in the coming days before deciding on the settlement’s approval.
30th January 2025: Philippines: The National Tobacco Administration (NTA) has highlighted that unpaid taxes from the tobacco industry are not only leading to declining government revenue but also negatively impacting the livelihoods of farmers and their families. This loss of revenue is affecting funding for essential services like healthcare. The NTA has asked for stricter law enforcement and improved collaboration among local governments.
30th January 2025: Philippines: The Sin Tax Coalition, a campaign to secure the passage of a high tax on products such as tobacco, urged the Senate (upper chamber of Congress) Ways and Means chair Sherwin Gatchalian not to suspend the yearly 5% increase in excise tax rates on tobacco and related products. During a committee hearing, Gatchalian recommended measures to combat illicit trade, such as involving local government units and improving tracking systems for tobacco and e-cigarettes. However, he did not support the proposal to suspend the annual 5% increase, which is currently lodged in the House of Representatives (lower chamber) through House Bill 11279.
30th January 2025: Kuwait: Minister of finance Noora Al-Fassam has confirmed that she is preparing the Selective Tax Law, also known as the Harmful Goods Tax, which will impose a tax on all harmful products. Al-Fassam estimates that the law will generate approximately $648m in revenue. Ahmed Al-Shatti, vice president of the Ministry of Health’s National Anti-Smoking Programme, highlighted the significance of this tax, noting that smoking costs the government around $1.36bn annually. According to a press report, the revenue from this tax will help support the medical sector. The law is part of the Selective Excise Taxation Agreements signed in 2017 by the Gulf Cooperation Council (GCC) member states. Kuwait currently imposes an excise duty of 100% of the retail price on heated tobacco products. While not officially mentioned in the Ministry of Finance’s press release, this tax could potentially be introduced as part of the Harmful Goods Tax.
30th January 2025: Australia: The state of South Australia has become the first state to explicitly ban nicotine pouches. Starting today, as established in today’s South Australian Government Gazette, nicotine pouches are deemed prohibited products. According to the government, the measure intends to put an end to the increasing trend among teenagers to use nicotine pouches. Fines for the illicit sale of pouches can be up to AUD1.5m (USD935,000). At the federal level, nicotine pouches are already very restricted; they are considered therapeutic products and can only be sold by prescription.

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