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EU: TobaccoIntelligence has obtained an incomplete copy of the impact assessment report accompanying the proposal for a council directive amending the Tobacco Excise Directive. This or a very similar draft is to be discussed on 7th December. In order to take into account economic differences within the EU, the European Commission is proposing an index whereby the minimum tax would be periodically adjusted for each individual member state dependent on purchasing power parity (PPP). There would be corrective criteria to avoid huge differences between low- and high-income countries. The EU intends to substantially increase all tobacco and nicotine taxes, as well as to encompass new products and any that emerge later by creating a “catch-all” category. There would be two systems for heated tobacco: one for stick-based products, with a proposed tax of €91 per 1,000 units, and one for other systems at €130 per kg. TobaccoIntelligence will publish further details of the proposed taxes tomorrow, including those for pouches.
Massachusetts: The Massachusetts Superior Court has dismissed a challenge to the town of Brookline’s Tobacco-Free Generation bylaw, which will remain in effect, town administrator Chas Carey has announced. The bylaw prohibits anyone born after 1st January 2000 from purchasing tobacco products, including e-cigarettes, in the town. “The dismissal of this challenge is a positive outcome, validating decades of tobacco control work in local government to reduce access to tobacco and nicotine products and prevent disease for future generations,” the town’s public health commissioner Sigalle Reiss said. “Brookline has laid the path that other communities may now follow as they seek to keep harmful tobacco products out of the hands of generations to come.” Brookline, which lies in the Boston metropolitan area, has a population of around 60,000.
Israel: With most votes counted after yesterday’s general election, the Likud party led by former prime minister Benjamin Netanyahu appeared set to unseat premier Yair Lapid and return Netanyahu to power. Netanyahu’s right-wing bloc, which includes the Religious Zionist Party (RZP), the conservative United Torah Judaism (UTJ), and the religious Shas party, has a more negative approach to vaping and new tobacco products than the outgoing government, as shown by the policies implemented in its previous terms of office.
Vietnam: Members of the one-party National Assembly have expressed concern about a potential pilot project for the regulation of e-cigarettes and heated tobacco, press reports. Pham Van Hoa, who sits on the Law Committee, said a pilot scheme was inappropriate before the products had been through an impact assessment.
EU: The scrutiny period on the Commission Delegated Directive setting out a flavour ban on heated tobacco products has ended, with no objections registered by either the Council of the European Union or the European Parliament. Contrary to earlier reports, the Delegated Directive has not yet appeared in the Official Journal, although it is likely to be published soon, and will come into force 20 days later.
Denmark: In snap elections held yesterday, the centre-left bloc retained its power with Social Democrat leader Mette Frederiksen remaining prime minister. The government is likely to maintain its restrictive position on tobacco and vaping control.
Tunisia: The Tunisian General Workers’ Union (UGTT) says it will oppose the privatisation of the state-owned National Tobacco and Matches Administration, press reports. Privatisation, which the government has reportedly promised the International Monetary Fund it will carry out, would end the state monopoly of all tobacco product manufacture, marketing and supply.
UK: According to the parliamentary agenda, the publication of the government’s Tobacco Control Plan will be discussed in the House of Lords on 23rd November.
Georgia: Standardised plain packaging for tobacco products will become mandatory from 31st December under the Law on Tobacco Control, media reports. Tobacco importing companies had called for implementation of the rule to be postponed to enable them to switch to alternative suppliers due to the war in Ukraine, which used to be the main producer of tobacco products for Georgia; however, deputy health minister Tamar Gabunia reportedly said there was no reason to delay.
UK: New prime minister Rishi Sunak has reappointed Steve Barclay as Secretary of State for Health and Social Care, a role he previously held from 5th July to 6th September this year. The UK Vaping Industry Association said it was imperative that Barclay “reinstates the Health Disparities White Paper and commits to the publication of the Tobacco Control Plan this year, building on the Khan Review”.
EU: The reform of the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation is expected to be postponed until the end of 2023, according to the European Commission’s work programme, media reports. The delay means the reform is unlikely to be adopted before the next European Parliament elections in May 2024. The REACH regulation already applies to the cannabis and hemp-based vapour industry, but the revision may lead to enhanced reporting and evaluation of chemicals. It is already considered to be one of the strictest laws to date regulating chemical substances and will affect industries throughout the world; its revision could mean tighter restrictions on some problematic chemicals or even the banning of some.
EU: The European Commission yesterday approved the proposed acquisition of Swedish Match by Philip Morris International (PMI), announced in May, provided PMI complies with the commitments offered. These commitments, suggested by PMI to address the Commission’s preliminary competition concerns, consist of divesting Swedish Match’s logistics arm, SMD Logistics. The Commission will closely monitor the divestment process, including the choice of a suitable purchaser for the divested business, which will have to be approved by the Commission.
Austria: The federal government has presented to Parliament the Budget Accompanying Bill 2023, which would bring in a gradual increase in heated tobacco tax, starting at €164 per kg from 1st April 2024 and rising to €215 per kg on 31st March 2026. The bill has yet to be approved by Parliament.
France: The National Assembly has adopted an amendment presented by the government to the 2023 Social Security Financing Bill which aims to introduce two tax categories for heated tobacco products and an annual tax increase until 2025. In order to encompass possible future products, one category would tax heated tobacco sticks, while the other would tax all other forms in which heated tobacco is sold. The government amendment was presented after several parties criticised the original wording of the bill, which would only have taxed heated tobacco sticks. An amendment to tax nicotine pouches at €22 per kg was declared inadmissible.
EU: Due to a scheduled system upgrade, it will not be possible to notify products through the EU Common Entry Gate (EU-CEG) between 9:00 and 14:00 CET tomorrow, 26th October.
Philippines: The Department of Trade and Industry is to hold a virtual public consultation on Friday, 28th October, on the draft implementing rules and regulations of the Vaporized Nicotine and Non-Nicotine Products Regulation Act. The rules cover labelling, sale, advertising, sponsorship and purchase of e-cigarettes and heated tobacco products.
US - general: Philip Morris International (PMI) today announced an agreement with Altria to end the companies’ commercial relationship covering Iqos in the US as of 30th April 2024. PMI will pay a total of $2.7bn – $1bn of which was paid when they made the agreement, the remainder will be paid by July 2023. PMI’s CEO Jacek Olczak said: “This agreement gives PMI full US commercialisation rights to Iqos within approximately 18 months and provides a clear path to fulfilling the product’s full potential in the world’s largest smoke-free market, leveraging PMI’s full strategic and financial commitment to Iqos’s success.”
Belgium: Health minister Frank Vandenbroucke has proposed a ban on tobacco vending machines in bars, restaurants and catering facilities, allowing them only in supermarkets. The ban would include vaping products and nicotine pouches as well as conventional tobacco products. The bill is moving forward and has been voted on at its first reading.
EU: Following a Freedom of Information request by TobaccoIntelligence, the European Commission has disclosed the comments sent by Croatia, Hungary and Sweden to the Belgian TRIS notification of a Royal Decree seeking to ban the manufacture and sale of nicotine pouches. All three countries question whether the protection of public health could be achieved through less restrictive measures, while Hungary considers that “the ban treats nicotine pouches less favourably than products with a possibly worse risk profile available on the market (e.g. conventional cigarettes)”. TobaccoIntelligence will publish a report on the matter in the next few days.
France: A number of amendments to the 2023 Social Security Financing Bill (nos. 46, 1217, 1442, 1979, 2329, 2862, 2921 and 3272) have been put forward by different political parties, all with the aim of taxing heated tobacco by weight in order to encompass possible future products. As it currently stands, the bill would tax heated tobacco consumables at a rate of €44 per 1,000 units plus an ad valorem tax of 51.4%. Meanwhile, president Emmanuel Macron’s Renaissance Party (formerly En Marche!) has introduced an amendment to tax nicotine pouches at €22 per kg.
US - Massachusetts: The Massachusetts Superior Court has dismissed a lawsuit challenging a local by-law banning the sale of tobacco products in the town of Brookline to anyone born after 1st January 2000. The court saw no conflict between the town law and state law, which specifically allows cities and towns to restrict the sale of tobacco products.
EU: Swedish MEP Sara Skyttedal has submitted a parliamentary question asking the European Commission whether it intends to include new nicotine products such as nicotine pouches in the ongoing revision of the Tobacco Excise Directive (TED), whether it agrees that new non-tobacco nicotine products play an important role in reducing the number of smokers and, if so, how this will affect the revision of the TED. Skyttedal is a member of the Christian Democrats party, affiliated to the centre-right European People’s Party Group.
EU: Sources within the European Parliament have told TobaccoIntelligence that no member of the European Parliament Committee on the Environment, Public Health and Food Safety has shown any interest in objecting to the Commission Delegated Directive setting out a flavour ban on heated tobacco products, so it will not be discussed. The act will therefore be published automatically in the Official Journal once the scrutiny period ends on 29th October – though as that is a Saturday, publication will probably be on Monday 31st October.
Americas: The Pan American Health Organization, the regional office of the World Health Organization (WHO), has published a paper on “Taxation of novel and emerging nicotine and tobacco products (HTPs, ENDS, and ENNDS) globally and in Latin America”, analysing “the evolution and market structure” of heated tobacco and e-cigarettes, with and without nicotine, and proposes “possible elements of a good tax policy approach for countries to consider”. The paper makes extensive use of TobaccoIntelligence data.
Czech Republic: National anti-drug coordinator Jindřich Vobořil will present a new action plan on addiction to government officials and interested members of parliament and senators today, media reports. According to Vobořil, priorities include the regulated cannabis and tobacco markets. ECigIntelligence understands the plan is based on the principle of harm reduction, as previously mentioned by officials. This could lead to the promotion of vaping products and alternative tobacco products to current smokers. Voboři believes the proposal will pass and could apply as early as mid-2023.