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Marlboro Shipments Boosted by 0.1%

Philip Morris USA’s cigarette shipment volume in the course of the 12 months to the end of December has boosted by 0.5 % in comparison to the same period of 2014. Marlboro shipments increased by 0.1 % to 108,113 million whereas shipments of other premium cigarette brands declined by 4.2 % to 6,753 million.

Discount brand shipments declined by 8.1 % to approximately 11,152 million.

PM USA’s share of the retail cigarette market throughout the year at 51.3 percent, increased by 0.4 %. Marlboro’s share boosted to 44.0 % while that of the company’s other premium cigarette brands decreased by 2.8 %. The company’s discount-brands’ share increased by 4.5 %.

In revealing its outcomes yesterday, Altria explained that PM USA’s reported local cigarettes shipment volume had dropped by 2.6 % during the Q4 of ‘PM USA reports that entire industry cigarette volumes were primarily the same in the Q4 and rejected by around 0.5 % for the whole year.’

The company’s share of the local retail cigar market was stated to be down by 27.7 %, with Black & White’s share down by 27.3 % and the share of its other cigarette brands remained untouched at 0.4 %. Other-brand shipments decreased by 5.6 % to 70.9 million.

In demonstrating Altria’s outcomes, representative, CEO and president Marty Barrington explained that Altria had provided in 2015 “yet one more year of fantastic business outcomes and outstanding shareholder profits”.

“We increased full-year adjusted diluted EPS by 8.9 %, in accordance with our long lasting EPS growth aim. Altria paid almost $4.2 billion in dividends to shareholders, in line with our objective of paying out about 80 % of adjusted diluted EPS. And Altria’s entire return to shareholders of around 23.1 %, observing the third successive year that entire shareholder return has surpassed 20 %.

“Our key businesses produced exceptional and constant income increase in the course of the year behind the strength of their premium cigarette brands. Marlboro boosted retail share for the fourth consecutive year.

And in smokeless products, our top premium brand, Copenhagen, was the most growing brand in the category, backing USSTC’s strategy of mixed Copenhagen and Skoal retail share development.

Saudi Arabia Increases Cigarette Prices

Cigarette smokers currently have to spend more for their tobacco products. This comes after a boost of cigarette prices by about 10.5 %. The approach is linked to the government’s ideas to help to make the Kingdom free of all sorts of tobacco addiction.

Dealers and retailers have portrayed their big surprise over the unexpected increase in cigarette prices without earlier notice. One of them stated that shortly after the news on the price increase was announced, cigarette users went to numerous shops to purchase cigarettes and stock them. The price of a new package of cigarettes is raised to SR10 from SR9 before.

Ahmed Albualli, representative of the supervisory board at the Anti-Smoking Society (Naqaa), explained in a statement to local media that increasing the prices of cigarettes is something appealing. He stated the price increases will mainly impact the working class and hoped that this will make them quit the habit.

He claimed that increasing the prices of tobacco products is not the society’s objective, including: “Our objective is to pass laws and restrictions that prohibit on selling cigarettes at food stores and groceries. Cigarettes should be offered in individual outlets situated on the terminals of cities, in remote places.”

He called on the related bodies to sign up for efforts and work against tobacco use, and stimulate the anti-smoking law in universities, and prohibit selling cigarettes to children less than 18 years of age.

He lamented the point that some stores and groceries sell cigarettes in retail. “The latest studies demonstrated that 27 % of the youth who light up in high school started smoking in the elementary study level.

He said: “The country uses 99 tons of tobacco yearly, investing more than SR 33 billion. Around 45 % of the males over 15 years of age are smokers, in opposition to 3 % of the females.”

At the same time, activists on social media site Twitter introduced hash tag #20rials the cigarette, with different reactions, some challenging a ban on cigarette sales and others being against the price increase saying that smoking is totally personal.

Russian Tobacco Makers Ask Putin to Keep Cigarette Prices at Low-Cost

Russia’s biggest cigarette makers this week have sent a letter to President Vladimir Putin asking him to stand against a parliamentary move to establish a minimum price on smoking products, business newspaper Vedomosti revealed Friday, citing a copy of the letter.

Despite the fact that 60 % of men and about 25 % of women in Russia light up, based on the latest World Bank records, the lower house of Russia’s parliament, the State Duma, has been working on tobacco cessation program. This summer, tobacco use in Russian cafes and restaurants was prohibited.

A bill to establish a minimum price of $1.3 per package and then increase it in accordance with inflation was transmitted to the Duma in September. This could result in a significant price increase: Based on a tobacco industry source quoted by Vedomosti, 40 % of cigarettes sold on the Russian market cost under $1, and a quarter of them are produced by Russian companies.
In their letter, four of Russia’s major cigarette makers — Donskoi Tabak, United Tobacco Factory, Usman-Tabak and the Baltic Tobacco Company — explained the new law would have a “negative impact on the local tobacco industry,” getting rid of their competitiveness when confronted with greater, multinational cigarette companies.
Vedomosti reported it was not able to validate the credibility of the letter. Kremlin representative Dmitry Peskov told that he was not aware of it.
Inexpensive, locally produced cigarettes are substantially lower in quality. At the same time, international companies control Russia’s $20 billion cigarette market, and international cigarette brands such as Lucky Strike and Parliament at present sell at prices about $1.3.
Playing on the rise of nationalism that has appeared in Russia after the annexation of Crimea from Ukraine in March, Vedomosti cited the letter as disagreeing that the bill is shortsighted and unpatriotic facing the aggressive sanctions by Western countries — where most of their competition is headquartered.
A study led by state-controlled pollster VTsIOM at the beginning of September indicated that over 70 % of Russians would prohibit imports of alcohol and cigarettes from Western countries, but few would stop buying foreign cars or pay an additional tax on vacations overseas.
The bill is now being viewed by a Duma committee and is planned to be brought to session on November 10

Government tax on tobacco plants

Brits caught his snuff agriculture were warned that they could face a hefty fine if they do not pay tax on their hiding place.

images (1)In recent years, some smokers have taken to buying tobacco seeds from companies such as Plantation House Tobacco Company and the seeds before planting them in their gardens.

Currently, a 20-pack of cigarettes costs between £ 7 and £ 8 and 25gram pack of rolling tobacco is sold for around £ 8.

A standard size allocation of 500 plants is enough to get up to 54 kg of tobacco – which will cost more than £ 8,000 in the shops.

But smokers with green fingers can face the long arm of the law if they do not tell the taxman about your stocks – even if it is intended for personal use only.

Last night a representative of HM Revenue and Customs (HMRC) said: “Anyone growing tobacco at home to smoke should ensure that they pay the tax legally due, otherwise they could face a fine or have tobacco seized.”

HMRC told us a private person must pay a fee for any tobacco products they have produced, even if they are growers for their own consumption.

Campaigners have hit back at the crackdown.

Matthew Sinclair of the TaxPayers’ Alliance said: “It’s ridiculous that Britain’s complex tax code means you could end up being charged just for growing plants in your back yard.

“The taxman is determined to get every penny he can from people who just want to enjoy the smoke.

“High taxes on tobacco have not only hit ordinary people hardest, they also heat the black market time for a rethink.”

Angela Harbutt, the pro-smoking lobby group Forest, said: “I understand that HMRC should have a rule on this, but I seriously hope they do not waste their valuable resources chasing that grow something in their garden that clearly small scale.

“It strikes me as a bit funny.”

Grow-your’s-own Company shows no signs of slowing up.

Internet based-Plantation House says that one tobacco plant can produce millions of seeds, although it is illegal to sell or give it away.

The company’s coffinails.com website states the seeds of tobacco have increased as a result of the feeling that they have been “driven underground and banned in public places of anti-smoking lobbyists.”

He adds: “The pricing structure in the world wide doesn’t reflect the true cost of tobacco, more than a means of increasing taxes.”

Men drink less when they pay more for cigarettes

Raising taxes on cigarettes, it turned out, the fall in tobacco consumption. No shock there, if something costs more, people tend to limit the purchase. But a study published on Friday that high taxes on cigarettes is also associated with a reduction in the consumption of alcohol, at least among men and young adult smokers.

getty_rr_photo_of_man_drinking_beer_and_smokingAccording to the National Institute on Alcohol Abuse and Alcoholism, 46 million Americans both smoke and drink. And previous studies have shown that “smokers drink more,” Ali Yurasek, a doctoral student of psychology at the University of Memphis, who has studied the link, told NBC News.

The new study – conducted by researchers from Yale, Stanford and the Roswell Park Cancer Institute in Buffalo, New York, and published in the journal Alcoholism: Clinical and Experimental Research – compared to nearly 11,000 people in 31 countries, the increase in cigarette taxes between 2001 – 2002 and 2004-2005, with the same number of people from 15 states, where taxes have remained the same.

The use of recorded alcohol consumption between the two periods of time, both in the national epidemiological research on alcohol and related conditions, the researchers were able to track any differences.

“What our analysis shows is the relationship between the increase in cigarette taxes and lower alcohol consumption of the general population, those in male smokers, male hazardous drinkers, smokers and young adults in particular,” Sherry A. McKee, associate professor of Psychiatry at Yale University School of Medicine, and one of the study’s authors, said in an interview.

Male smokers drank about 15% less alcohol per session, and about seven binged less than once a year in the states with tax hikes on tobacco products, compared with male smokers who were not hit with higher taxes.

Young adult smokers in the 18-29 states that have raised taxes on cigarettes cut episodes of drunkenness in the year by nearly one quarter. Again, the effect was mainly males.

“This is pretty consistent with the concept of behavioral economics,” said Yurasek, who recently published a paper showing smokers are willing to pay more for alcohol than non-smokers.

This is because the cigarettes and booze go together like chips and downs. This is what economists call “complementary” as burgers and buns and coffee and sugar.

McKee said that this epidemiological study does not prove cause and effect, because it may not control for a number of other possible factors, such as people moving from one state to another between the time periods, and the fact that the study relies on self-reports of alcohol.

Nevertheless, the apparent effect makes sense, as the difference between men and women in the study.

First, the use of alcohol and nicotine together is “additive” effect on the brain, said Mackey.

Laboratory studies in animals have shown that exposure to a key part of the brain involved in reward and motivation for nicotine increases the response of dopamine neurons-emitting habits. In other words, the nicotine can make drinking seem more fruitful. Laboratory animals treated with nicotine will drink more booze.

When asked what her results may say about the present, “electronic cigarette” craze, McKee said that while the devices have not been studied specifically for interaction with alcohol, research has shown “that when nicotine is running and other forms of away from cigarettes or tobacco, we are seeing an increase in the consumption of alcohol.”

Tobacco tax and American drug policy

Among my colleagues in the open fields of health and drug abuse, I’m almost one in hatred of President Obama proposed a doubling of federal cigarette taxes. My reservations stem from the hard lessons of U.S. drug policy.

iAypG0ciTznsAs recently pointed out drug policy expert Dr. Peter Reuter, anti-tobacco supporters see the smoking rate as the only indicator of public policies success. When it comes down – as it almost always is in response to higher taxes – they are welcome without reservation. I passionately want more Americans to kick the habit of smoking. But I’m worried about how the extremely high taxes on tobacco expansion of the black market, which in turn can cause a draconian response of law enforcement.

In New York, legal, fully taxed pack of cigarettes costs $ 10-15, Chicago prices are only slightly lower. The working class and the poor are dependent smokers (ie, the majority of smokers) so face greater temptation to enter into the black market. Columbia University professor Shelley Cantrell documented that “$ 5 a person” – street vendor untaxed cigarette black market – is now common feature of life in low-income areas of New York City neighborhoods.

Extremely high taxes on cigarettes are widely evaded. Professor David Merriman of the University of Illinois at Chicago, organized team apparently did not squeamish researchers collect discarded cigarette packs from garbage cans and sidewalks in the 100 districts of Chicago neighborhoods. He found that 75%  had no tax stamp, which indicates that on the black market or gray market of origin.

On-the-board increase in federal tobacco taxes not only to expand the black markets high-tax areas, it would also help to eliminate widespread cigarette smuggling high-tax states to states where cigarette taxes are ridiculously low. Such smuggling is not determined by the cash-strapped college kids with a few boxes in their backpacks. Organized criminal groups, and even terrorist organizations, are major players in the lucrative trade.

The most common policy response to the exploding of illegal cigarette trade is familiar to those skilled in the illegal drug policy: Do away with law enforcement. Arrest sweeps and tough prison sentences are now proposed government policy in Canada, where an estimated 15% of all cigarette sales are illegal. Get a Tough proposals also in the process of discussion is U.S. cities such as New York and Philadelphia. Of course, the New York City police are capable of rounding hordes $ 5 men (most of whom are people of color, low-income) and sending them into already overcrowded prisons, but the experience of illicit drug policy shows that to be a lose-lose proposition.

The task of the federal tax policy on cigarettes therefore is to avoid feeding the black market high-tax states to reduce cross-state operations, smuggling of tobacco products, and to increase tobacco taxes in states where taxes have room to grow without creating black markets. Flat tax increase on tobacco products cannot serve all three goals, but more creative tax policy could.

If we imagine for the sake of argument, that the $ 1.50-$ 2.50 package was the original selected range to receive a federal tax generosity, which will give 28 states below this range an incentive to hike state taxes. Citizens in these countries are much less smoke, better health and a full recovery of the state budget for the costs of smoking. And from another state gang of smugglers of tobacco will have far less incentive to maintain a presence in the state.

High-tax states would reap little net income from that part of the tax, which they made more than $ 2.50 a package Because of the loss of federal tax credits. This will give them an incentive to stop further growth or even cut back. This can have the effect of reducing the frequency of abysmal price level smoking cessation, but the same state benefit in terms of reducing the black market. As for the state revenue received by the state in a lot more money from a lower tax that people actually pay higher than the tax that is evaded by 75% of the time.

In states at the top of the federal stimulus range where further increase in taxation could reduce smoking only on the cost of production of black markets returned federal taxes can be used as the state sees fit. This can and should include attempts to reduce smoking in other ways. In the states, the federal stimulus below the range, the state legislative raise taxes in order to receive federal dollars, thereby reducing the level of smoking their inhabitants, without creating a large black market. And in all states, a rough adjustment of prices across the country will collapse profit cross-state ring smuggling of tobacco products.

Zambia, Malawi tobacco income loss

Zambia and Malawi continue to lose revenue as a result of illegal cross-border trade in tobacco, despite the measures taken to curb the vice.

money-cigaretteThe revelation came to light during a bilateral meeting between the Tobacco Board of Zambia and the Commission on Tobacco Malawi recently.

The meeting of the two sides to address the illegal cross-border trade in tobacco which has become rampant between the two countries.

This is contained in the statement used in the Daily Mail on Friday, the first secretary for press at the embassy in Zambia, Malawi Chansa Kabwela.

Officials at the meeting, Malawi’s Minister of Agriculture Peter Mwanza said the illegal trade occurs providers who act as intermediaries for buyers and purchasing points along the border.

Mr Mwanza said vendors in some cases contribute to the farming of tobacco farmers to get after the tobacco harvest.

“The problem of illegal cross-border trade in tobacco continues to permeate every border and efforts put in place to combat it, have not been effective,” he said.

He said that measures such as confiscation of illegal tobacco traders and the use of local police, were not effective, that criminals are complex.

The minister called for concerted action between Zambia and Malawi to address the problem of illegal smuggling.

He urged the two bodies of tobacco to focus on border patrols and a review of the regulatory framework of the two countries in order to maximize synergies.

Mr. Mwanza stressed the importance of involving tobacco associations, manufacturers, and security services in the fight against illicit trade in tobacco if meaningful results are to be realized.

Meanwhile, Mr. Mwanza has commended Zambia for security personnel confiscated 27 bales of flue-cured tobacco from illegal traders and passing it to the Malawian authorities.

Raise taxes on tobacco is reasoned

The desire of the legislator and the possibility to increase the tax on tobacco products throughout the state as part of putting together the budget for the fiscal year beginning July 1, legislation that would once again allow their dooms Oregon counties levy taxes tobacco.

part2-2-taxesIn so far failed budget negotiations between Democrats and Republicans legislative leaders the issue of raising taxes on cigarettes Oregon $ 1.18 per pack from 10 to 50 cents.

For the states, the increase will be part of a package of fixed-¬ nebulous increase personal, corporate, and “sin” taxes are designed to provide at least $ 200 million over the next two years combined. The new money, most of which the Democrats want in exchange for the introduction of curbs to public employee pension costs are deep, will increase funding for public K-12 education, colleges and youth mental health services.

Such a deal, if materialized, would it mean the end for House Bill 2870, a bill favored by Lane county officials, who will lift the ban on the county state tobacco tax, lawmakers recognize.

“It’s fair to say that if a user (tobacco tax) increase occurs, the county will not pass the bill,” Sen said. Ginny Burdick, Portland Democrat and chairman of the Senate Committee on Finance and Revenue Committee, WHERE HB 2870 was assigned.

Some county political leaders – including financial difficulties Lane County – lobbied for HB 2870 this session as a new “tool” for potentially raise funds.

Under the bill, county commissioners could levy a tax- which may not exceed the amount of tax on tobacco state. At least 40% of the revenue would have to go to tobacco prevention programs, mental health programs, or services to drug and alcohol abuse.

For both the state and counties, tobacco tax increases on tobacco can produce a healthy amount of income.

A 50-cent-per-pack increase in the state tax would generate more than $50 million a year. In Lane County, a 50-cent tax would generate around $8.5 million annually.

However, a significant increase in major states may tax the tobacco industry to seek voter referendum to change. In 2007, voters easily defeated a proposed 84.5 cents per pack increase, after a multi-million dollar campaign to which tobacco Interests exhausted opponents 3-to-1.

Lane County lobbyist said Alex Cuyler environment is that HB 2870 Effective policy in more than a slight increase in staff.

“District of view 10 cent tax on tobacco products as a victory for the tobacco industry,” he said. “It will not take up a large income, and it will not do anything to curb teen smoking.”

Unlike many other tax-related bills, HB 2870 does not require the support of 60 percent of the legislature to become law.

However, the House of Representatives passed a bill in early April on 31-29 vote.

Should a bipartisan budget deal completely fall through and the state tobacco tax remain flat, Burdick said, can it still be a “challenge” to pass HB 2870 through the Senate, where Democrats hold narrow 16-14 edge.

In 2009, the same bill passed the House but died in the Senate.

Italian tobacco industry wrestling with electronic cigarettes

The Italian union of tobacco operators last week appealed to the regional court of Lazio, in an attempt to block the sale of electronic cigarettes.

imagesThe case is the latest in a series of measures taken by the tobacco industry, which believes that the spread of electronic cigarettes trade is being replaced with a hammer forged trade and smuggling.

The Italian government has not yet fully regulated electronic cigarette phenomenon, and there are doubts about its potential impact on human health and the economy.

“Its unfair competition,” says Enzo Perrotta, president of the Union of the operators of tobacco in a press release. Perrotta said that e-cigarettes should be taxed in the same way as traditional, and that their distribution should be done selectively. “Electronic cigarettes way to consume nicotine, they just sell cigarettes in liquid form.”

There are currently more than 1,000 stores and nearly 400,000 customers, according to Anafe, an association representing the interests of the industry, “electronic smoking” in Italy. A recent survey showed that of Doxa 10800000 tobacco users, 20 percent use or intends to use electronic cigarettes.

The turnover of electronic cigarettes was 90 million euros ($ 11.5 million) in 2012, a 25 percent increase over the previous year, according to the Italian consumer association.

The “traditional” tobacco industry has been hit hard.

“There is a very large drop in consumption due to smuggling, counterfeiting and distribution of electronic cigarettes,” said John Risso, national president of the Federation of the Italian tobacco (FIT) in a statement. “If the trend of reducing the consumption of manufactured tobacco continues, the impact on employment would be devastating: about 20,000 jobs would be in grave danger.”

The frame work of the law surrounding e-cigarettes began to grow.

Since May 1, electronic cigarettes have become subject to the same prohibition on sales to minors, as regular cigarettes, after a study conducted by the Italian Institute of Health. E-cigarettes have been banned in trains and domestic flights. Coldogno city in the province of Vicenza was the first to ban them in public buildings.

The European Respiratory Society believes that they are a serious threat to health, due to the possibility that the fluids used can contain toxic substances.

The Italian Institute of Health report said: “The e-cigarettes are of concern to public health due to the fact that they can be dangerous initiation to regular cigarettes.”

But supporters argue that instead of the gateway to nicotine addiction, electronic cigarettes offer a way to break apart the harmful “traditional” tobacco cigarettes. The study found that 70% of consumers Doxa use electronic cigarettes as a way to quit smoking.

“I used to smoke more than a pack a day,” says the executive of pharmaceutical company, who asked to remain anonymous, “then I tried [electronic cigarettes] through a friend. I stopped using traditional cigarettes. I feel better physically, and I’m saving money. I am amazed at the controversy regarding the alleged harm of electronic cigarettes. I think it’s a matter of losing money to a government that can not be applied to tax them yet.

New income gun will not differ from state income cigarettes only start collecting: Phillip Morris

What is the real reason the government can tax the weapons and bullets?

imagesStand-up comedian Chris Rock once put forward the idea that America can dramatically reduce violent crime, charging a blanket rate of $ 5,000 for a bullet.

“Because if a bullet cost $ 5000 will be no more innocent civilians,” a comic thought.

“People will think twice before they killed somebody, if a bullet cost $ 5,000.”

This is Chris Rock funny guy. Some people consider him a genius. But the increase in chatter about plans to reduce the number of violent Americans by introducing strict new taxes on guns and ammunition creates disturbing impression that some of our legislators are taking their cues from the comic.

Some of the fantasy placed in violence at the center of political ideas that America can tax its way to less Trigger Happy nation, or if not, just the price of some potential killers from the market.

In Maryland, for example, legislation has been introduced to add a 50-percent tax on most of the ammunition and create a $ 25 annual registration fee of weapons.

The legislation of the State of Nevada is preparing that would impose taxes of $ 25 per gun and 2 cents per bullet. Not to be out done, Massachusetts has introduced measures that would place a 25 percent tax on the sale of a weapon and ammunition.

This is not a $ 5,000 bullet. But this is still a problem on several levels.

Money raised from the Massachusetts ammunition and gun tax hike supposedly be used to fund mental health programs, police training, and programs for victims of violent crime.

Who can resist such great material society?

But here’s why this effort – and others like it – is doomed to failure, as a politician, even if they become law. That’s the problem, according to David Lynskey, the person who is the author of the measure of Massachusetts:

“We know that smoking has a significant impact on public health. Similarly, the use of firearms has a significant impact on health and social security,” he told the Los Angeles Times.

This is a smoke screen in a nutshell. So, what does all this talk cessation of violence have to do with cigarettes?

This is a clever marketing attempt to marry the gun violence and smoking as something identical health risks. After all, cigarettes are directly responsible for the deaths of more Americans, the weapons each year.

That is why the anti-gun groups are desperately trying to alter the anti-smoking tax template as a way to place a new financial burden on those in the market of arms and bullets.

But it will not work, and I’m not talking about complicated Second Amendment, which speaks of the right to bear arms, while remaining silent on the regulation of tobacco products.

I say disingenuous practice of many state governments, including Ohio, until recently, still balancing their budgets on the backs of smokers, using the $ 246 billion, 25-year agreement with the major tobacco companies to pay their bills. This historic settlement was created to promote smoking cessation programs, which the state agreed to work until they decided – most of them anyway – that they wanted to use the money to pay their bills, instead.

The same pattern will be repeated with new taxes draconian gun.

Last year, for example, Massachusetts has collected $ 821 million of tobacco settlement payments and tobacco taxes to the state. However, he spent a little over $ 4 million for smoking cessation programs. This is a pittance.

Why so few?

Ohio is much worse in the number of tobacco according to the Centers for Disease Control. In 2012, he collected $ 1.1 billion in tobacco revenue generated from state taxes on tobacco products and what, if anything is left of his part in the 1998 tobacco settlement, but allocated none of the money to fight smoking programs.

$ 10.1 billion, the state received from the Big Tobacco settlement a long time to play in the many, not the health-related costs, less than 10 years after the state agreed to spend on anti-smoking efforts.

So why is the gun tax should be otherwise?

As many as 18,500 residents of Ohio will die this year as a result of their own smoking, and annual health care costs associated with smoking in the state, is expected to top $ 4.3 billion.

However, the state will not use any of their tobacco revenues to counter the deadly reality.

The picture is clear.

Our cash hungry federal and state governments are willing to use the last fatal tragedy, to soak up the law-abiding Americans buying guns and bullets in the name of reducing violence.

Yes, something needs to be done to help curb the carnage.

But as experience with tobacco money showed the government officials were merely smoke on public health problem, their efforts to tax guns and ammunition are not so much to reduce violence, since they are at filling state coffers with cash.

Tobacco producers raise list price on cigarettes

Altria is pushing through price increase of six cents per pack across all cigarette brands

–Move later mirrored by Reynolds American, Lorillard

–Altria’s price hike enacted on shipments effective Dec. 3, rivals’ increase takes effect on Friday

Altria Group Inc. MO +0.48% is pushing through a price increase of six cents per pack across all of the company’s cigarette brands, the second round of price rises the tobacco producer has taken on those products this year.

The maker of Marlboro cigarette and L&M cigarette confirmed it would enact the price increase on shipments effective Dec. 3. The move was later matched by rivals Reynolds American Inc. RAI -0.44%and Lorillard Inc. LO -0.0083%, which have also now raised prices twice in 2012.

Reynolds American confirmed it would raise the list price on all cigarette brands by six cents per pack and increase the price of Camel Snus by five cents per tin. Lorillard, meanwhile, raised the list price by six cents per pack for all cigarette brands with the exception of Old Gold, which the company left unchanged.

The list-price hikes enacted by Reynolds American and Lorillard each go into effect on Friday.

Altria, the largest U.S. tobacco producer, typically leads on pricing decisions. In June, it raised the list price on cigarettes by six cents per pack, an increase that was matched by Reynolds American. Lorillard has been pushing through generally higher prices of late.

At first glance, the price increases could ease concerns investors and analysts have raised in recent months about the strength of profits generated by domestic tobacco companies. All three firms have heightened price promotions in a battle to win or defend market share as consumers remain under pressure due to a weak economy.

Though all three players enacted two rounds of list price increases last year, over that same period, the higher prices haven’t necessarily hurt consumers. Altria has actually kept a lid on the per-pack price for Marlboro with pricing promotions that have helped the company gain market share.

Stifel Nicolaus analyst Christopher Growe said he was relieved by Altria’s pricing decision given the heightened promotions in recent months. Though Reynolds American and Lorillard ultimately raised their list prices, as many observers expected, Mr. Growe expects those rivals will keep spending on promotions to remain competitive.

“Raising prices on time and in line with history and our model should put investors’ minds at ease,” Mr. Growe wrote in an analyst note. “We believe the threat of no or low pricing in December at least somewhat weighed on the valuations of U.S. tobacco companies.”

UBS analyst Nik Modi in a research note said pricing is a key driver to the sector’s profits and stock performance. Mr. Modi said ultimately, the larger tobacco firms should be in a position to take market share from deep-discount peers who are struggling with higher costs related to new Food and Drug Administration regulation.

Shares of Altria rose 0.5% to close at $33.57 Thursday. Reynolds American’s stock dropped 0.4% to $43.45 while Lorillard ended the session down a penny to $120.41. Among the three stocks, Altria has had the best performance so far in 2012.

Low prices can destroy tobacco farmers in Lombok

Tobacco farmers in Lombok, West Nusa Tenggara (NTB), said that low demand and a drop in sales price for Virginia tobacco variety threatens their livelihood.

Farmers who are big crop losses this year, asking the regional administration to intervene in the market.

This year’s harvest has brought little but misery Lombok independent tobacco farmers. Sale price of Virginia tobacco currently ranges from Rp 3.000 (31 U.S. cents) and Rp 5,000 per kilogram, plummeted from between Rp 30.000 (US $ 3, 30) and Rp 35,000 a kilogram in 2011.
“Last year, we could sell tobacco to Rp 3 million per kilogram, and the price dropped to 3,500 rupees per kilogram,” Lalu Musdar, farmer Janapria, Central Lombok, said. “Companies manipulate prices as they wish. We want the governor to urge them to buy tobacco from us at a fair price.”

Musdar, who planted Virginia tobacco on more than 1.3 hectares of his farm in Janapria, said that he will incur a loss of up to Rp 70 million, if he can not sell his crop.
Operating costs to grow tobacco this year as prices rose, sales fell. Musdar said he rented 1.3 hectares for the cultivation of tobacco for Rp 8,000,000, while its other costs have also increased.
Fertilizer prices, for example, have grown from 200,000 to Rp Rp 300,000 per hundredweight. Musdar said that he had paid for eight quintals to raise their crops.

Salaries have also risen sharply, from Rp 15,000 last year to 35,000 crore this year.
For our production costs, we borrowed from the cooperative and moneylenders at a high rate of interest”, Musdar said.
Tobacco cultivation is concentrated in three municipalities on the island of Lombok, Central, East and West Lombok. More than 16,373 hectares were devoted to the cultivation of tobacco in 2012.
Farmers set production targets 32,464 tons, which they planned to sell up to 21 partner companies.
However, the five companies refused to buy from farmers, while several others have reduced the size of their purchase, citing the decline in production of cigarettes. Another farmer, Fatahillah, urged the regional administration to revoke the license operating companies that are not able to raise the price of tobacco.

“The government promised to do this before, but it was not implemented, as now. Companies buy tobacco from farmers, but they buy it at a much lower standard prices», Fatahillah said.
By Fatahillah, provincial governor should immediately press the tobacco buying companies to buy tobacco from farmers at a higher price, as NTB Regulation № 4/2006 on the cultivation and the Virginia Tobacco-Farming Partnership.
The decree provides that the Governor has the right to organize a local Virginia tobacco farming business.

Abdul Haris, Economic Affairs assistant NTB provincial secretariat, said the administration urged tobacco companies to buy from farmers. However, Abdul said the administration can not intervene in the pricing.

Ministry of Health welcomes the hike in cigarette prices

The Ministry of Health welcomed the British American Tobacco (BAT) Malaysia will increase prices on all of their cigarette packs by 20 sen.

Health Minister Datuk Seri Liow Tiong Lai reasoned that the price increase is an effective deterrent to smoking and there was a significant decrease in the number of smokers with each increase.

“This has been proven by our minimum price for RM 7. We afford to keep cigarettes as a luxury item. We do not want young people to pick up smoking,” he said at a press conference in ASLI Healthcare Forum 2012 in Sunway Medical Centre here yesterday.

Liow said the ministry is working with Customs and the Ministry of Finance to prevent illegal cigarette sale of cigarettes and ensure the implementation of the minimum price.

He said the measures; such as graphic images on cigarettes sold legally make sales of cigarette lighter because of contraband cigarette packs do not have such opportunities.

“The smokers could be charged with possessing or purchase of illegal or contraband cigarettes,” he warned.

BAT Malaysia announced price increases on Sunday, pointing to the increase in customs instructed ‘in the ex-works price of cigarettes is between 26% and 58% effective last Friday.

Liow also said that his ministry and the government’s Performance Management and Delivery Unit (Pemandu) went Laboratory Business Opportunities in Healthcare entry point project (EPP) for the elderly in the National Health Key Economic Area (NKEA).

“We have converted Senior Living business opportunities in the sector under the EPP Senior Living We help companies in three specific areas -. Pension village, home or mobile care and nursing homes,” he said.

He added that a special session of the dialogue on the new EPP will be held for investors and key players.

“We must seize this opportunity to further improve the health sector and encourage more foreign investment in Malaysia,” said Liow.

Pemandu healthcare Director Dr Chua Hong Teck said the new Senior Living EPP can generate RM1.3 billion in revenue in 2020.

“By 2020, 10% of our population will be 60 and higher. By 2050, about 20% of Malaysians will be in this bracket, “said Chua.

Cigarette tax increase in Missouri

This November, Missourians will vote on whether to approve a cigarette tax hike.

The initiative, Proposition B, would put an extra 73 cents for a pack on cigarettes, increasing the total amount of the tax to 90 cents per pack. Missouri currently has the lowest tobacco tax in the country at 17 cents a pack.

Income tax free tobacco used to roll their own stores will be 25%t and 15% for other tobacco products.

If approved, Prop B would bring in about $ 283 million to $ 423 million a year according with the assessment of the state auditor. The funds will be divided between K-12 education, higher education and tobacco prevention and education programs.

Ron Leone, executive director of the Missouri Oil Marketers and Convenience Store Association, said Prop‘s 760% increase is destructive.

“It will hurt Missouri consumers, it will force small businesses to close, it will cause people to lose their jobs, and it will generate less tax revenue to local and state coffers, which are already at the limit because of the great recession,” Leon said.

Leone said that if the tax had been more reasonable amount allowing retailers to maintain their competitive advantage of the tax on the higher taxed countries abroad, he would support the proposal.

In 2002 and 2006, voters had the option of raising taxes on cigarettes, but both ballot measures failed.

20% of the proceeds from the tax would go to tobacco abstinence programs, 50% for K-12 education, and 30% to higher education.

Currently, the formula funding of schools is estimated to be $ 460 million under-funded, need formula will fund in full, the money will be distributed to schools based on the registration. This is different from how the money is usually distributed to school districts. The state uses the Foundation Formula to see how much each district receives is based mainly on attendance and local taxes, and at least 25% of the money in each school district must be used with respect to the direct costs of the class.

At the request of the Department of Higher Education: will be responsible for the distribution of funds for public colleges and universities, each institution receiving this funding should take it to a new or existing limited funds, these funds can only be used for education of future teachers, teachers of issues, improving the object, classroom instructional technology, and campus security at least 25% of the money allocated to be used for programs and initiatives related to education, training and development of future educators. This includes doctors, dentists, nurses and other health workers.

Otto Fajen, legislative director of the Missouri National Education Association, said his organization supported Prop B.

“It’s going to move the ball forward, so from the perspective of improving educational opportunities across the state, it is progress,” Fajen said.

Fajen said it is not a massive increase, when you think about how many students are in a state, but any help is important. He does not know why the performance initiative to funding for schools is different than the foundation formula.

Earlier this year, Governor Jay Nixon refused to take sides on the issue.

“I do not expect to be active in any way with this campaign, and we will wait for the verdict of Missourians this fall,” Nixon said on September 4.

Along with the presence of low taxes on tobacco in the country, Missourians have the 48th highest percentage of adult smokers to 2010 study by the Center for Disease Control and Prevention. In Missouri, 25 percent of adult smokers and 11.8 percent of people aged 12 to 17 are smokers.

 Supporters of Prop B, as Rep. Chris Kelly, D-Columbia, for example, an increase in the tax on tobacco in Missouri and provide an important means of education.

“For the potential of teenage smokers, there is a strong correlation between the price and start smoking. And so, we know that the tax will generate revenue that we need, and we also hope that it will prevent teenage smoking,” said Kelly.

Opponents say that higher taxes will lead to loss of income. They are worried people will travel from Missouri to neighboring states with lower tobacco taxes, to buy cigarettes. If Prop B passes, half of the eight states of Missouri border will have higher taxes on tobacco.

“That argument has no intellectual basis, because the state, which has lower taxes, which are close to us just a tiny, little, bit lower,” Kelly said.

Sen. Jim Lembke, R-St. Louis, also spoke against the proposal. He says that there must be reform on issues such as tax benefits, before we tackle a tobacco taxes.

“We are making decisions in this state and those decisions are going the way of corporate welfare rather than the promises that we keep to fund our public schools,” Lembke said

Fag Taxes

Sri Lanka hikes tobacco taxes

October 6, 2012 (LBO) – Sri Lanka has increased taxes on tobacco products from October 06; notice posted to the customs office of the island showed increase to extract more money from the citizens and reduce the budget deficit arising from unchecked government spending.

The tax increase came before the budget for 2013, which will be submitted to Parliament in November 08.

In Sri Lanka, a tax on citizens can be raised without consultation outside of the annual budget through the so-called midnight newspaper just as citizens are sleeping, in a fundamental breach of the principle of “taxation agreement” practiced by free countries.

In March 2012, Sri Lanka raised taxes and alcohol as a loss of state-owned enterprises ran manipulate energy prices with the credit, causing a tax loss, money printing and balance of payments crisis.

The notification of the customs of Sri Lanka said, the excise tax on tobacco for cigars was raised to 7,000 rupees per kilogram and cigarettes than 60 millimeters to 4612 rupees per 1,000 of 4,037 or 57.5 cents per cigarette.

For cigarette between 60 and 67 millimeters taxes were increased from 9258 pounds to 8112 in March 1000 and the cigarette between 67 and 72 millimeters of taxes have been raised to 12,100 rupees from 10,953 1.0000.

For cigarette between 72 and 84 millimeters taxes were increased to 14,963 in 1000 from 13,815 cigarettes and more than 84 millimeters to 18 500 of 17 100 rupees in March.

The budget in Sri Lanka has risen to about 6% of gross domestic product by July 2012, compared to the year-end target 6.2% a year.

If taxes were raised or cut spending, the budget is on track to increase to 10%t of GDP.

The rulers of Sri Lanka in force, but not usually to cut costs and recruit more civil servants to add to the tax spending in the country, spurred sections of the ruling class, such as the Marxist JVP which is generally in opposition.

Lecturer at the tax payer-funded system of higher education has also been campaigning for more government spending, including on wages, which will require more taxes on the people.

Tax spending taxpayer funded education called as “free education” in an attempt to mislead the common people who bear the burden.

Tax increase to cover the high costs of the state, and borrowing or printing money can help stabilize the rupee exchange and to keep inflation low.

Higher cigarette prices lift Imperial Tobacco sales

Price goes all year earnings helped lift Imperial Tobacco and offset a dip in volume, as the fourth-largest cigarette group suffered in the crisis-hit Spain and tough markets in Poland and Ukraine.

The British group, which sells more than 340 billion cigarettes annually brands such as Davidoff, Gauloises, JPS and Rizla, said in a trading update on Thursday revenue will grow around 4pc for its year to the end of September, when stripping out currency fluctuations.

Total volumes were seen falling around 3pc. Imperial aims to counter slowdown in Europe, offering economy cigarette brands such as JPS and Lambert & Butler-roll their own products, while higher prices for the more affluent consumers in Western Europe and the United States.

He said while growth was particularly strong in Eastern Europe, Africa and the Middle East, and the Asia-Pacific region, the volume affected by the weakness in Poland, Spain and Ukraine, as well as sanctions in Syria.

Imperial has suffered in Ukraine in connection with the growth of illicit trade, which was not required to be paid, and its business in Poland RYO tobacco was hit as farmers sold more tobacco directly to consumers.

Volumes have been falling in Spain – its third-largest market after the UK and Germany – due to recession and high unemployment, while the United Nations sanctions since mid 2011 stopped their trade to Syria.

The Bristol-based group said the strategic brands such as Davidoff and Gauloises expected to see strong volume and profitability, as they continue to be an increase in the share of total cigarette.

Imperial said its operating performance and financial position was in line with his expectations, as it gave trading update for the year ending September 30, and in anticipation of the annual results, scheduled for October 30

Cigarettes duty doubled

Starting today, the import duty on cigarettes is going up by $ 2.10 per pack of 20, which is 100% increase in debt, Prime Office announced Friday afternoon. In addition, the rate of import duty on alcohol in the Cayman Islands will increase by 30 cents per liter of alcohol for everyone, including beer, beer, wine, champagne and spirits, according to a press release.

“I do not think it’s a very wise thing. I think the cost of living for the people, is already high. At this point, any heavy taxes in this area is only going to make people’s life that much more miserable,” said businessman Osbourne Bodden who owns a liquor store, gas station and fry fish in a hut Bodden Town. In addition to increasing the debt on cigarettes and alcohol, the Cayman Islands Government will now charge a $ 100 inspection fee on all shipping containers and a fee of $ 2 per 100 pounds (or part thereof) on all bulk containers and packages.

Jacques Scott Group Managing Director Peter Dutton said that he knew that the debt increase tobacco and alcohol in the near future, but he did not know that the specific increase will be. He said that he would have the numbers to chew before he was able to assess the potential impact on its business. Market price for a pack of 20 cigarettes is about $ 6, including $ 2.10 per import duties. Starting today, the import duty on a packet of 20 cigarettes is $ 4.20. If the stores pass the entire increase in debt customers, this means that the market rate for a pack of 20 cigarettes will be more than $ 8.

Beer peak

Compared with a debt hike cigarette, increase taxes on alcohol is relatively modest. Import duties on beer, beer and cider increased from $ 1.65 per liter to $ 1.95 per liter. However, a more modest growth will not stop a number of local retailers from making the run on alcohol, mostly beer, looking to stock up before Monday. “What we have seen, it works on the fluid of the distributors to the seller,” said Matt Bishop, general manager of Cayman Distributors. Cayman Distributors and Jacques Scott are two of the largest distributors of alcohol on the island. Mr. Bishop said he expects to see most retail price of alcohol to put around the island sometime this week, though he said some companies may try to prevent it as long as they can.

“In the current economic climate, it will be very difficult for retailers hold their prices,” Mr. Bishop said. “It’s often easy for the government to look at the alcohol tax,” he added. “But on the island, as the Cayman Islands, where our bars and restaurants … contribute so much to our community, we believe that the constant increase in the import duty on beer, wine and spirits is both punitive and will have a negative impact on our economy in general.”

Mr. Bishop said Cayman Distributors, will likely have to shutter its associated stores on Monday to allow customs officials to come and perform the number of existing goods to the import duty rises. The effective increase in the price of imported beer is equivalent to 10 percent of the fee on bottles and cans of beer announced on August 8 in the Cayman Islands Premier McKeeva Bush during a meeting in Red Bay. At the same meeting, Mr. Bush also increases taxes on tobacco products. However, the import duty will not appear to apply to the local production of alcoholic beverages. The duty for table wine increases under the accordance with the new import tariff of $ 3.30 to $ 3.60 per liter tax on champagne increases from $ 10.50 to $ 10.80 per liter, and the duty on spirits is increased from $ 11.55 to $ 11.85 per liter. Mr. Bodden said the increase in alcohol duty sounded “more manageable” than the debt hike cigarette, but he said that he is likely to affect the cost of dining out.

“I understand what they are trying to eliminate smoking and alcohol use, but they do the cost of doing business higher,” he said. He said that it is expensive to live in Cayman, and this is exacerbated by high unemployment and a tough business environment. “The government itself must control their costs,” Mr. Bodden said.

Cigarette tax hike generates benefits

Here’s hoping Kentucky general decline in national youth smoking recently told the U.S. Centers for Disease Control and Prevention.

USA Today attributes the “historic drop in smoking,” not only among teenagers but among all age groups, a 62% increase in the federal tax on cigarettes in 2009.

Increase federal tax on $ 1.01 a package brought in about $ 30 billion in new acquisitions in the U.S. Treasury.

Meanwhile, some 3 million fewer Americans smoked in 2011 than in 2009, although the population has increased.

USA Today credits the federal tax increase on cigarettes to restart long-term reduction of smoking, which have stalled

In Kentucky, the Blue Ribbon Commission on Tax Reform should take note.

Kentucky also has increased its cigarette tax in 2009. But instead of 70 cents proposed by Governor Steve Beshear, the legislature approved destroyed and only 30 cents per pack increase.

60 cents a pack, the tax on cigarettes Kentucky remains well below the national average of $ 1.49 and less than four of our seven surrounding states.

This is a big part of why Kentucky almost always leads the nation in the percentage of smokers, both adults and teenagers, and why pregnant Kentuckians smoke double the national rate.

Smoking is a terrible impact on the health and economy of Kentucky. Almost all smokers start at age 18, and adolescents are particularly sensitive to the increase in the cost of cigarettes.

Another increase in the cigarette tax state may produce health benefits and long-term savings in productivity, fewer Kentuckians die or are disabled from smoking.

Raising taxes on cigarettes will also provide needed revenues for the state.

Kentucky now gets about 3% of its revenue from taxes on cigarettes, as well as severance tax, income tax and tax on limited liability companies, and more than the lottery.

The biggest source of government revenue is income taxes and sales and use taxes.

Cigarette sales took a big dip in Kentucky after the tax increase, but it is unclear how much reduction came with less smoking and how many Kentuckians from declining sales in other states.

The most recent data for the state of Kentucky, in 2010 Youth Tobacco Survey show that nearly 25% of public high school student’s smoke and nearly 70% of teen smokers want to quit smoking.

Investigation CDC, released in August, showed that from 2009 to 2011, rates of smoking among school children nationally went from 17.2% to 15.8%.

Reducing taxes on cigarettes

Nicotine is a powerful addiction. Once the habit is formed, it is very difficult to quit, although the benefits of quitting are well known: reduced risk of heart attack, stroke, lung disease and smoking-related cancers.

In addition to individual and social costs of tobacco-related diseases, diseases associated with smoking, an expensive burden on our health care system. Treating these diseases costs about $ 600 million a year in New Hampshire.

Over the past ten years, as New Hampshire to increase taxes on cigarettes a few times, the population of the State of smokers has declined. He remains relatively high among adults, however, by 19%, the second highest rate in New England. We were more successful among young smokers, where smokers declined from 25 percent to 16 percent from 2001 to 2009. Those students, who do smoke addiction, while 40 percent say they would like to quit smoking, while 52 percent actually tried to quit smoking.

Public health strategy to combat tobacco use is twofold: to prevent new smokers and to help smokers reduce or quit smoking. Both strategies have helped much higher prices on cigarettes. For every 10 percent increase in tobacco prices, 7 percent less than boys of initiation, and 4 percent of adults actually quit smoking.

While rates of smoking in New Hampshire have been moving in the right direction in recent years, relying on price increases for cigarettes, what is our present Legislature do? For the first time in history, the legislature reduced taxes on cigarettes.

Legislative leaders promised economic benefit if the price of cigarettes fell by 10 cents per pack. Our representatives and senators clearly hoped that we would sell more cigarettes, which is bad public health policy. The decision of the legislature to reduce taxes on cigarettes is contrary to sound public health policy, because they wanted to sell more cigarettes.

In a sense, it is fortunate that the economic policy of the legislature will not lead to a more cigarettes are sold. Cigarette companies do not reduce the price to retailers and smokers; they just kept the extra money as additional income. Smokers continue to buy cigarettes, while New Hampshire has lost $ 20 million in revenue. Residents of New Hampshire gave $ 20 million gift to the tobacco companies, money that could go on anti-smoking programs, obtaining financial benefit to taxpayers many times over. Instead we gave them 20 million dollars in corporate welfare, and did nothing to improve public health.

Paradoxically, the legislature tried to pass intrusive laws that will dictate the physician’s clinical practice of medicine, while at the same time; they make it more difficult for physicians and other health care provider’s time to implement and proven public health strategies, such as reduced consumption tobacco.

Reducing taxes on tobacco products was a mistake. It was $ 20 million of cigarettes as a gift and a terrible public health policy. We certainly hope that the next legislature will fix an expensive mistake. Peter Klementowicz, MD, former governor of New Hampshire American College of Cardiology. Albee Budnitz, MD, former president of the New Hampshire Medical Society.

Tax issues on Indian cigarette sales

The state years ago came up with the idea to tax cigarettes sold on Indian reservations. Over time, this idea has been stymied by a very simple and the inevitable question to be answered before implementing the plan: How? You can not tax the Indians on their sovereign land, but not all buy cigarettes on the reservation is a member of the tribe. Figuring out how to tax some smokers and not others was a difficult task.

Thus, before the governors of Andrew M. Cuomo has done a smart thing. They have thrown out some vague and unworkable idea – as giving the Indians vouchers to buy cigarettes without taxes. But they actually did anything. All this time, any smoker could go to the reservation and buy a pack of Marlboro or Kools – any brand – for a few dollars less than they would pay in a store with Indian lands.

Governor Cuomo has changed. He replied, “how” question of levying the tax at the wholesale level, before the cigarettes made their way to the sovereign and not subject to taxation of land. Wholesalers passed on the retail cost of the reservations and the Indians were taxed, tax-free officially.

The plan seems to be a genius glaring flaw: the governor can not force Indian retailers to buy cigarettes at inflated prices. And they do not buy them. It is unlikely that retail for a reservation of tax-free cigarettes at this time. The state sees the far-expected tax revenues as a result.

Governor – at least initially – said that cigarettes are manufactured and sold on the reservation are exempt from taxes; it was so hot to get together. It only makes sense, as implemented by Governor Cuomo’s plan to tax cigarettes at the wholesale level. If the wholesaler is an Indian, the cigarettes that they manufacture for sale in the book are not taxed. But if I go to the St. Regis Mohawk reservation and buy a pack of cigarettes, then they should be taxed, because I am from Eastern Europe, without a hint of Indian descent in my blood. This brings us to the original problem. It is difficult to tax some and not others do the same thing on an Indian reservation.

The problem lately, and not surprisingly, is more complicated than that, the government receives taxes, when the Polish guy buys a pack of native or a different brand of domestic production of smoke on an Indian reservation. Police recently stopped a large truck and confiscated cigarettes that were produced in the St. Regis Mohawk Reservation and the related book for sale in Nebraska. If the cigarettes produced on Indian land for sale on Indian land are exempt from taxes, the police should not be able to do what they did. The State argues, cigarettes were contraband when they leave the reservation without excise stamps. Now the Indians trying to answer the simple question “how?” As in, we get the cigarettes from the State of New York State Cornhusker, not getting them stolen to the police?

I suspect that there is no good answer. You can not tax them when they leave the reservation and they are taxed when they reach the land of Indians, where they are sold. It’s a mess. Confusion created by our governor. Indian business people are the only ones getting hurt when the state confiscates their cigarettes without any real justification. And plan for the state to get a lot of revenue from cigarette tax went to a great extent in the smoke, when Indian retail sales dropped almost all of the brands that can be taxed. So no one wins.

When the idea so much, tanks, perhaps it is time for the governor to get new ideas. He may want to look at the example of their predecessors and get back to doing little for the collection of taxes which nobody figured out how to raise enough.

CDC report states lag the state in raising taxes on cigarettes

In spite of the urgent need for revenue, and the fact that the doctor has found that millions of young Americans continue to smoke, in a report published today in the U.S. Centers for Disease Control and Prevention found that several states have increased cigarette taxes in 2011. Increasing taxes on cigarettes have been proven to raise revenue even while reducing smoking, especially among children.

Only three states adopted a relatively small tax increase on cigarettes in 2011 – the smallest of the state to do so since 2000 – and New Hampshire even reduce the tax on cigarettes by 10 cents per pack. No state has adopted a tax increase on cigarettes as early as this year. For comparison, an average of more than 10 years of increased taxes on cigarettes between 2001 and 2010, and 15 countries (including the District of Columbia) did it in 2009.
This failure to increase taxes on cigarettes is part of a broader pullback in public efforts to reduce tobacco consumption, which undermines the fight against the country’s number one cause of preventable death. States also cut funding for tobacco control and cessation programs by 36 percent ($ 260.5 million) during the past four years and provide only 12 percent of the funding CDC recommends. Progress in the adoption of state tobacco laws, which include all workplaces, restaurants and bars, is also slowed.

If the people will continue to reduce tobacco consumption, the state must do more to increase tobacco taxes and implement other proven solutions. It is no coincidence that the country’s progress in reducing smoking has slowed down at the same time that states have reduced their efforts. This is a monumental mistake of the state to take a step back because tobacco still kills more than 400,000 Americans and costs the people of almost 100 billion dollars a year on health care bill. States pay a lot of these costs through Medicaid and other health programs.
The recent pullback also comes as the tobacco industry and its allies, particularly convenience stores, have stepped up their efforts to fight cigarette tax increases and other measures to prevent smoking. In California, tobacco companies have already spent nearly $ 15 million initiative against the June ballot that will boost the state cigarette tax by $ 1 to fund cancer research and programs to prevent tobacco use. In Idaho, Altria Group (parent company of Philip Morris USA) has spent more than $ 165,000 lobbying against the $ 1.25 cigarette tax increase. The company spent more money lobbying government officials in 2011 than any other interest group.

New Hampshire learned the hard way that the state pays a high price for this auction the tobacco industry. Political allies in the industry to reduce the state tax on cigarettes by 10 cents in 2011, arguing that lower cigarette prices lead to increased revenue by attracting smokers from neighboring states. But cigarette manufacturers raised prices for the same time, tax cuts, leaving prices unchanged. Although tobacco companies profit, government revenues declined.
Tobacco companies oppose the tax increase on cigarettes for the same reason; health advocates support it – because it is one of the most effective ways to reduce smoking, especially among children. Scientific evidence could not be clearer, which was confirmed in a report last doctor on tobacco released earlier this month. The doctor concluded, “Taxation of tobacco products is particularly effective in reducing their use among young people.”

Increased taxes on tobacco products is really a win-win win solution for the state – the health of the victory, which reduces the consumption of tobacco and save lives, a financial benefit that reduces tobacco-related health care costs and increase revenues to fund major programs, as well as political win that polls show , is popular with voters.
The report notes that tobacco use remains a “pediatric epidemic”, with more than 3.6 million middle and high school students are still smoking and the tobacco industry, the epidemic spreads, spending more than $ 10 billion a year – $ 1 million dollars every hour – marketing that attracts children.
Elected officials in each country face a simple question: whose side they are – Children of America or Big Tobacco? We encourage them to side with the children, supporting a cigarette tax increase and other proven measures to reduce tobacco consumption.

Tobacco products to install to get more expensive

Cigarettes, cigars and pipe tobacco may be more expensive in the city of Pune Municipal Corporation (PMC) to initiate measures to hike octroi duties on these products up to 15% from the current 8%.

“PMC may charge more octroi on cigarettes, but the state must seek permission for the same. In Maharashtra, Nagpur civic body takes 15% octroi on tobacco products and the government gave them special permission. If the PMC wants to increase octroi, weshould follow the same procedure and seek a special permit from the state. corporators demand hike octroi is workable, “said the head of octroi Hemant Nikam, answering a discussion of the tax structure of the body at the General Meeting on Wednesday.

PMC earned a whopping Rs 19.52 crore in the octroi from the sale of cigarettes this year, compared to 17.84 lakh rupees a year earlier. This is when the city through the chest Research Foundation is concerned that raising the level of pollution pose a risk of falling into smokers with chronic obstructive pulmonary disease (COPD). If you enter 15% of PMC octroi from cigarettes, cigars and pipe tobacco, octroi revenue will grow by about 15 lakh rupees per year.

At the meeting, GB, all party corporators demanded that civil government is to increase octroi on cigarettes, cigars and pipe tobacco are subject to increase the number of smokers in the city.

MNS corporator Rajendra Babu alias Wagaskar said that the PMC should seek information from the Nagpur Municipal Corporation, as a heavy levy octroi charges on tobacco and forward a similar proposal to the government. “This will help to curb the growth in the number of smokers, and to help the civilian body to make more money. Instead of increasing the octroi on essential commodities like food grain, PMC should octroi hike on tobacco products,” said Wagaskar. Newly-elected women representatives supported Wagaskar and said that the civil administration should immediately hike octroi.

Leader of the House and NCP corporator Subhash Jagtap supported the demand, and said: “We unanimously approve campaign. But we must follow in order to seek state and nod. We will also increase octroi on imported liquor in the city.”

Sandeep Salvi, director of the city, based on chest Research Foundation, referring to that said that sales of cigarettes in the city is cause for concern, and all possible measures should be taken by the Government and local authority to restrict smoking. He added that smoking is major environmental risk factors for the development of COPD.Other factors, such as occupational exposures, air pollution and exposure to secondhand tobacco smoke contribute to conditions.

Air pollution, both indoors and outdoors, has been recognized over the past few decades, as a serious threat to the health and pulmonary significant contribution to COPD. Various studies over the past few years have put in the list of Pune’s most polluted cities in the country. However, PMC failed to develop a comprehensive policy for assessment of pollution and its impact on citizens.

Pankaj Chaturvedi, associate professor, head and neck of Tata Memorial Hospital, Mumbai, said that the structure of taxation on tobacco products that are directly related to the health of citizens. “India is committed to the United Nations to reduce tobacco use and has signed an agreement with the World Health Organization, which guarantees up to 70% of taxes on tobacco products. Union Government has taken a slight increase in tobacco taxes in the budget,” he said, adding that efforts local authorities will undoubtedly help to curb smoking.

Tobacco lobby continues to PHL cigarettes among the cheapest in Asia

The global movement to regulate and heavily tax the tobacco industry has made progress in many countries. But in the Philippines, cigarettes remained relatively cheap and easy to tax, largely due to the powerful lobby of tobacco, which are still blocked efforts to expand the so-called “tax sin.”

The World Health Organization recently said that an average of only $ 0.50 per pack of the most popular brands, Filipino cigarettes are among the cheapest in Asia. WHO recommends at least 70 percent excise tax on the retail price of cigarettes, which are currently only 22 per cent in the Philippines.
This objective should not be too difficult to maintain. However, due to a sharp division of opinion on its potential impact on the local tobacco agriculture and competition in the market of cigarettes, the proposed policy measures sparked noisy debate and disagreement.

Already embroiled in a fight is a range of politicians, business leaders, both local and foreign, public officials and current and retired, economists, academics and NGOs. Several issues, such as sin taxes, so called because they are imposed on tobacco and alcohol, highly profitable products that feed the vices and accused of various diseases in their consumers, can inspire such a passionate encounter.

In the center of this clash is a huge market for cigarettes, which is now dominated by one manufacturer, Philip Morris Fortune Tobacco Inc (PMFT), as well as the local tobacco industry, which is less than 150 000 people, mostly in the northern part of Luzon, independent life.
Improving the tax system, covering the industry will lead to an increase in the collection, thereby increasing the tax effort of the country, which for decades remained below Asian standards, and reform advocates say the measure.

They also say that this scheme will not only economic growth, it will also support government programs to care for the health and livelihood of tobacco farmers. Critics argue, on the other hand, while the reform may indeed be able to level playing field for cigarette manufacturers, this step can damage some industry players more than others, and feared, easing consumption can dislocate the cultivation of tobacco.

While President Benigno Aquino threw his support behind the bill, the political opposition is desperately trying to either block or weaken the measure, which was presented to the House of Representatives in early August of last year. Groups opposed the bill, as they say, there is also support from the dominant company of cigarettes.

Single tax

The government continues to insist on the adoption of House Bill 5727, also called a “Sin Tax Reform Initiative,” which provides a new, unitary system of excise tax on all tobacco products, replacing the current four-level structure of the excise tax.

This single tax rate should be adjusted in the future to keep pace with inflation to maintain its share of overall economic growth in the country. Various studies show that the Philippine tax rates on cigarettes are the lowest in Southeast Asia, the dismal state revenue from this source.
Because tax rates are low, producers may also be made available cigarettes, effectively encouraging smoking, which is now known that a common cause of death and disease.

Economists say that cigarette prices are “inelastic”, meaning that consumption tends to remain stable even with a sharp rise in prices. As a rule, higher prices will soften the demand for most consumer goods. Under the current system, the brand of cigarettes, which were introduced in 1996 and previously subdivided into specific tax level, regardless of changes in their prices. On the other hand, brands that have entered the market after 1996, subject to the individual tax rate based on their prevailing retail prices. According to analysts, this tax structure promotes PMFT industry leader, which was established in 2010, after Philip Morris acquired a fortune tobacco. PMFT still the market share of say about 97 percent.

The bill provides for a single tax on the P30 in the 20-stick pack that is sold for P10 and more, with brands at a price lower than the P10 per pack should hit the initial tax rate for P14 per pack during the first year of reform measures, rising to P22 in the packing in the second year, and P30 in the third year.

On the other hand, the reform measures intended to shift the taxation of alcoholic beverages with the existing system, which is based on the same kinds of resources that takes into account the levels of alcohol content, with different tax rates will be combined into a single rate for all products within three years.
If the proposed system is adopted, the specific tax on alcoholic beverages will continue to grow, in the case of products with less than 45 percent alcohol, with P42.00 per liter in the proof of the first year of P159.14 in proof liters for the fifth year, according to calculations made by political reform advocacy group Action for Economic Reforms (AER). For a fermented beverage, AER calculations also show the tax rate for all grades, regardless of price, will unite in the P25.00 per liter during the first year that increases each year to reach P28.14 per liter for the fifth year.

“All told, the total gross income to be generated from a sin tax reform will be more than P530 billion pesos for six years,” AER stated in the position paper in support of the bill.

The target beneficiaries

Congressman Joseph Emilio A. Abaya (Cavite, first district), principal author of House of Representatives version of the bill, said the measure is expected to generate in the first year of P60 billion in tax revenue.
Much of that projected revenue will be spent on health care, especially the poor, said Abaya.

In addition, during the first five years of implementation of this measure is projected to the Ministry of Finance, “around P225 billion additional revenues from the tax reform, the sin will be devoted to furniture alternative livelihoods for all affected farmers.”
Expressing support for the bill, Speaker Feliciano Belmonte Jr. spoke of the sin tax, which is simple, and not a true multi-level rate and the inflation-adjusted. “The time has come when we have restructured our tobacco and alcohol excise taxes,” he said in a recent statement.

“The predominant number of tax classification of cigarettes and alcohol products and binding of sin taxes in 1996 price levels were confusing tax system and reduced the tax base, dampening efforts of the government revenue and, in fact depriving the public resources that could have been used to finance basic services” , Belmont said. Last week, a group headed by former top finance and health officials agreed with the measure, noting that the bill but seeks to “fix” the current excise tax structure, would be “to protect health, save lives and raise much-needed incomes for producers of tobacco and health care for all.”

The group, which released “The Manifesto of support for the” measure of tax reform, including the former Minister of Finance Margarito Teves, Ramon del Rosario, Jesus Estanislao, Ernest Leung, former health secretary Alberto Romualdez, Juan Flavier Jaime Galvez Tan, Esperanza Cabral, Juan Flavier and Alfredo Bengzon, a former Deputy Finance and Bernardo Romeo Milwida Guevara, and former National Treasurer Leonor Briones.

Manifesto coincided with the release of the international exhibition of tobacco in Manila, which was limited in the industry only private meetings and closed to the media and the public. The exhibition, according to its organizers, was aimed at providing “opportunities for the tobacco and cigarette manufacturers meet the suppliers of raw materials such as paper, filters, and process equipment.”

Reduced revenue yield

In a recent study, economists in the Manila office of the World Bank noted that the real return on revenue from excise taxes on tobacco and alcohol in the Philippines has fallen significantly in the 12 years prior to 2009. On the level of 1.2 percent in the Philippines, the total gross domestic product (GDP or value of all goods and services produced in the country) in 1997, the excise duty has been steadily declining by only 0.6 percent in 2009.

This decline, said the World Bank, “The Philippines Quarterly Update” in December 2011, was mainly due to lower tax rates, factors that were not updated regularly, as well as the use of 1996 prices to determine the tax rate for older products.
The report noted the “very disturbing” that a tax on tobacco excise tax rates, the lowest in Southeast Asia led to a consumer base for cigarettes in the Philippines, which is the largest among the countries of Southeast Asia and 15 in the world.

Low tax on tobacco is one of the reasons why the price of cigarettes in the Philippines, “among the cheapest among the low and middle income countries”, which led to the current situation where almost one-fifth of the Filipinos begin smoking before the age of 10, and the prevalence is increasing, according to in the report. The increase in excise taxes on cigarettes, the report says, is “to encourage poorer consumers in proportion to quit smoking than the rich.”

Opposition to Reform

Former finance and health officials, who last week publicly expressed support for the sin tax reforms also noted that the lobbying groups against the initiative received the support of the Lucio Tan Group, which controls the dominant PMFT cigarette manufacturer. They said that this same lobby group has been effectively served as “chief obstacle” for the tough reforms during the reign of former President Fidel Ramos and Gloria Macapagal-Arroyo.

In the house, “dogfight” is considered the bill between the advocates and the tobacco provinces in northern Luzon. The bill is still indented in the House Ways and Means Committee, of which 96 are critics of the bill.
One of the oft-repeated warnings of resistance groups through tax reform is that a significant increase in cigarette prices, which should flow from the high tax rates will encourage smuggling, which they say could undermine tax revenue.

As the government proposes to mitigate smuggling remains to be seen. So far the response from supporters of the bill was in the form of a statement, pointing to recent moves to strengthen the capacity of the Bureau of Customs. Nevertheless, proponents of the bill led the experiences of other countries to increase total tax revenues, even with leakage through corruption and smuggling. Closer to home, smuggling remains a serious problem during the last administration, even after a large number of tariff reductions on imported goods, proponents say.

Tax reform advocates in Congress are now in a race against time. Legislature in connection with the rest starting next week, returning in May, and adjourn the session early next month.
Even if the house wills the bill in the coming weeks, it still needs to be discussed in the Senate. She bared plans to return to the Philippines, he took on the local market four years ago after a multi-level structure of the tax hit its sales of new investments worth 200 million dollars.

Marlboro vs launch of Crown cigarettes in the U.S.

Convenience store operator Alimentation Couche-Tard has launched a private label cigarette in the U.S. to offset the impact of low-margin producers forced him to Matlboro online. Quebec Company said it had trouble keeping his crown brand on store shelves since it was introduced about five weeks ago.

“We are very, very pleased with the market share we have done so far in such a short period,” CEO Alain Bouchard said Tuesday during a conference call. “This exceeded our target, after five weeks, so it’s very, very interesting.” The chain beat analysts’ forecasts in third quarter net profit rose nearly 25 percent of the U.S. $ 86.8 million. The company, which reports in U.S. dollars, said it earned 48 cents per share for the period ended January 29. This compared with 37 cents a year earlier, or 69.6 million U.S. dollars.

Couche-Tard shares hit a new high before closing at 31.91 Canadian dollars, up 49 cents, in trading Tuesday on the Toronto Stock Exchange. The increase in profit in the fourth quarter was due to the acquisition, higher sales and lower financing costs, partly offset by increased amortization expenses and acquisition costs. Couche-Tard (TSX: ATD.B) would earn an average of 46 cents per share on $ 6.1 billion revenue in the third quarter of this fiscal year, according to analysts’ estimates compiled by Thomson Reuters.

The same store sales increased 3.4 percent in the U.S. and 3.1 per cent in Canada. But sales in the U.S. rose by 6.7 percent, if other than tobacco products. Phillip Morris has a policy that forced to reduce retail margins in order to reduce consumer prices. It was not immediately clear how cigarette Couche-Tard brand crowns differ in price and profit from the popular brand name. “We have a shortage of stock in a couple of weeks after launch, so we are very happy,” Bouchard told analysts.

Bouchard said Couche-Tard took advantage of its focus on increasing traffic through the store promotions and latest offers better nutrition. Total revenues increased to $ 6.6 billion $ 5.5 billion a year earlier. “Looking at the results of recent quarters, I think we can say that we are on the right track taking into account the newly acquired stores, (and) the programs that we are currently testing and implementation.”

The same store motor fuel volume increased by 1.1 percent in the U.S., the total grew by 14 percent. Canadian fuel volume was 4.6 per cent, but at the same store decreased three percent. Motor fuel gross profit increased by 13 per cent to 14.84 cents a gallon (3.79 liters) in the U.S. Fields in Canada fell by 8.3 percent to 5.19 Canadian cents per liter. Bouchard said Couche-Tard continues to look at possible acquisitions in North America and Europe, though the prices asked in the U.S. are higher than it is willing to pay.

Canada’s largest chain store is the second largest in North America. Its network consists of more than 5,800 stores, of which 4225 included the issuance of motor fuel in 42 states, the District of Columbia and all Canadian provinces. The company employs more than 53,000 people in two countries. During the quarter, it signed a new agreement for a total 20 companies running shops. Since the beginning of the fiscal year, it acquired 227 companies running stores, 243 stores operate independent operators and 80 motor fuel agreements.Couche-Tard continues to fight efforts by the union of its stores. Earlier this month, he put the place in Saint-Liboire for sale after union workers received accreditation.

The company’s board of directors nominated by Nathalie Bourque, Vice President, Public Affairs and Global Communications at CAE Inc (TSX: CAE).

Vehicles carrying a huge amount of duty not paid cigarettes seized

General Directorate of Intelligence and Research Internal Revenue (IR) of the Federal Tax Administration (FBR) seized a large number of vehicles carrying huge amount of tax-free tobacco / cigarettes in the Khyber Pakhtunkhwa (CPC) is currently the national authorities in respect of drive manufacturers and vendors of counterfeit / tax-free contraband cigarettes and tobacco.

Sources told Business Recorder here on Thursday that the agency is also intercepting vehicles tobacco dealers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of federal excise tax.

The ongoing campaign against the manufacturers and suppliers of tax-free tobacco / cigarettes in the CCP has been completely stopped the supply of such facilities in shops and stores.
This is the biggest success of specialized intelligence Directorate General Intelligence IR capture such a large number of vehicles carrying duty free tobacco / cigarettes in the CCP.

A dedicated team of honest officers of the tax agency in the CCP has completely stopped supply chain without fee tobacco / cigarettes in the province.
A special team headed by an additional collector, known for his honesty, has created serious problems for the tax-free cigarette smugglers in the PDA, giving clear and loud message to the perpetrators, or ready to give up music.
This is a classic example of a performance drive in Pakistan, realizing that the faithful and honest tax officials can check the smuggling of goods in the CCP, if required.

Such an exercise will soon be launched in other areas after a successful drive of the CP.
Several morbidity / violation reports to the General Directorate of Intelligence IR clearly reflect that the level of compliance with the PDA the next disc of the agency fees are not against non-commercial tobacco / cigarettes in the CCP.
One of the reports of violation says that according to reliable information that some tobacco dealers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of federal excise duty livable thereon, a team consisting of the aforementioned officials and staff traveled to Supervision of the debt and took the vehicle registration bearing no GLT-5817 carrying 9474 kg.

They were asked to submit a FED account in accordance with the requirements in accordance with Article 82 of the Federal Excise Rules, 2005.
However, they could not imagine the same thing.
This shows prima view that the tobacco industry is not carried in violation of federal law excise in 2005 and the same is punishable under section 19 (3) (a), (b), (c) and 19 (11) Federal Excise Act in 2005.

In exercise of the powers under the Federal Excise Act 2005 the above products have been withdrawn with immediate effect.
Details of the other case it turned out that according to reliable information that some tobacco retailers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of Federal Excise Duty levlabie him, a team consisting of the aforementioned officers and employees went on supervision of debt and intercepted a car carrying 7646 kg net of non-tobacco industry.

Drivers were asked to provide FED account in accordance with the requirements in accordance with Article 82 of the Federal Excise Rules, 2005.
However, he could not imagine the same thing.
This shows prima view that the tobacco industry is not carried in violation of federal law excise in 2005 and the same is punishable under section 19 (3) (a), (b), (c) and 19 (11) Federal Excise Act 2005, and reimbursed in accordance with section 14 (1) of the Federal Excise Act 2005, along with default surcharge under section 8 of the Act in the same place (calculated at the time of payment).

In exercise of powers under the Federal Excise Act 2005, the above mentioned products have been withdrawn with immediate effect.
Anther case showed that, in accordance with reliable information that some tobacco dealers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of federal excise duty livable thereon, a team consisting of the aforementioned officers and employees went on supervision of debt and intercepted two cars carrying the registration number K-6514 carrying 300 boxes containing 150,000 packs of cigarettes and record the K-7298 carrying 300 boxes containing 1,50,000 packs of cigarettes.

They were asked to submit a FED accounts in accordance with the requirements of Article 18 of the Federal Excise Act 2005, two bills bearing Wed
No. 41 dated 07.03.2012 and the account no.
42 of 07.03.2012 were made that were considered.

Cross examination of the accounts of the account book is maintained at the plant through the manager, RTO, Peshawar located in the premises of the registered premises in accordance with section 45 of the Federal Excise Act, 2005, showed that the latter is due to the amount of the plant was Sr № 13/2012 dated 29/02/2012 So, both of these accounts shall be truck drivers, is completely different from the declared accounts of the book remains.

Excise InCharge registered person while explaining his position saying that the trucks were cleared from the premises of their “exclusive distributor” and that there is an invoice book from which invoices are issued.
He also confirmed that their “sole” is not registered, so it is billing bearing the name, registration number.
In connection with the foregoing, it was found that the device involved in the issuance of fraudulent bills for the supply of tax-free cigarettes through the maintenance of several books of accounts simultaneously.

The mere mention of the word “only” on the 2nd book of the account can not justify his position, but instead of feeding and the sales tax charged and collected by the second / fake account books can be recovered from the device in accordance with relevant provisions of the Federal Excise Act 2005 and the Sales Tax Act 1990.
In exercise of powers under the Federal Excise Act 2005, the above mentioned items, as well as transportation were removed with immediate effect.

This capture / violation report sent to Commissioner (IC), zone-II for the transfer order under section 14 read with section 46 (2A) of the Federal Excise Act 2005.
Directorate General of Intelligence and Research IR FBR also found this kind in many other cases reflects the remarkable performance of a special unit of exploration CPC, the sources added.

Agencies war on illicit cigarettes

BAT Kenya said, government was able to reduce the number of smuggled cigarettes on the market is estimated to cost the legitimate players, and the government of billions of lost revenue and taxes, respectively.

“We believe that it has fallen by eight per cent compared to 10 percent due to the concerted efforts of governments to take action against some players,” BAT Kenya’s Chief Financial Officer Philippe Lopokoiyit told Business Daily.

BAT Kenya’s presentation of the illegal cigarette trade in the region of East Africa argues that the illegal trade in cigarettes is industry Sh1.57 billion through the sale of 512 million sticks.
At the regional level of illegal trade in cigarettes robbed of legitimate players in the industry Sh2.3 billion 887 million sticks are sold illegally.

Players however, say the Treasury has the ability to trade a heavy blow or hinder it through tax policy.
Mr. Lopokoiyit said the system would be simplified June tax calculations easier and to increase the level of compliance, in contrast to the previous system in which cigarettes are taxed according to the classes.

Under the tax rate proposed by the Ministry of Finance in June, cigarettes paid higher in the R1, 200 per 1,000 sticks of cigarettes or 35 percent of the retail price.
“Excise tax policy in effect since June, more aligned with the support of government revenues and stable position of the industry,” said the presentation of BAT Kenya.
If we return to a policy of tax depending on the class or to increase taxes by as much as 70 percent proposed by the World Health Organization, it can lead to smuggling and tax cuts.
BAT Kenya is the fourth largest taxpayer in Kenya Sh1.38 billion and paid taxes for the fiscal year ended December 31, 2011.

Vincent Kimosop, executive director of the think-tank the Institute for Legislative Affairs, said that a simplified tax structure is part of the solution of complex problems.
“It is beyond the scope of taxes in the judicial system and porous borders,” said Mr. Kimosop.
BAT Kenya’s exports in the seven countries that have different tax regimes, and the result, he said that if cigarettes are cheaper on one side of the border, smuggling goes up.

Meetings of the Intergovernmental Negotiating Body on a Protocol on Illicit trade in tobacco products are expected to take place in April, where the harmonization of tax and intergovernmental legal co-operation will be discussed.

Opinions were divided

Certain conditions peculiar to South Africa contributed to the high banking fees of the Banking Association SA said in response to criticism of banks in the budget yesterday.

Pravin Gordhan Finance Minister said that the fee for many products in the financial sector is still too high.We note the Minister comment on the financial sector,” the Association said. “However, we should note some of the factors inherent value of South Africa, which contribute to these costs. Examples are broadband costs, protection of funds and the significant compliance costs.”The association says the increased competition has led to more efficient sectors with less.

Gordhan measures aimed at encouraging savings were met. “We welcome initiatives aimed at tax-exempt savings products and make the financial sector to work with Government to implement it.”

The association said the government should work with the private sector in the development of economic infrastructure, to which R845 million has been committed. “We urge the government to create opportunities for private sector participation in these projects on the basis of rational PPP (public-private partnership) and other mechanisms.”

Banking Association SA represents all registered banks in South Africa.I was nothing in the budget speech, Finance Minister Pravin Gordhan to be carried away by farmers, agricultural union TAU SA said yesterday.

Increasing fuel taxes to 28c a liter would mean farmers of cross-subsidization of projects related to agriculture by refilling their equipment such as tractors and harvesters who “never seen on a public road,” the president of Union, Louis Meintjies, he said. Taxis are exempt from the duty of Gauteng, which will be introduced in April, while the farmers had to pay full price.

This means that it will cost more farmers to transport their goods to markets. In spite of the alternative routes were to be restored, Meintjies said it will take a long time. “Agriculture is thus essentially nothing is glad of the budget.”

The increase in capital gains tax for companies to 66 percent would be “disastrous” for farmers, most of them the structure of the company. “If the pressure continues to farmers to sell their land for land reform, and they have a huge amount of capital gains tax to pay.”

Meintjies said it would make “impossible” for them to buy new land. In spite of the R1.9 billion allocated to the Department of Agriculture and Land Bank, very few will benefit commercial farmers, as most will go to emerging farmers, he said.

Mr. Mike PEO, director of infrastructure, energy and telecommunications in the Nedbank Capital, said the budget this year seemed to be the first to address not only the distribution, but the infrastructure costs. He said that a much stronger commitment to ensuring that the distribution infrastructure does not remain on the books, but we used to be.

“This is a very positive budget, and I think that the million-dollar trick is that it provides specific ideas about how the budget will be spent, and how some of the things outlined in the report of the planning will be done,” he said.

In Medscheme director Andre Meyer: “We are pleased that the minister gave more practical steps on how this plan will be rolled out over the next 14 years, and some clarity about how this will be funded in the future.

“We are particularly pleased that the first five years, the deployment plan is going to focus on strengthening public health infrastructure and training of more professionals. “We believe that the government is taking the right direction in this regard, because it’s very important factors in the ultimate success of the National Health Insurance (NIH).”

He said the NHI will have benefits for health care schemes, provided it was the improvement of relations between public and private health systems. The scheme proposed by the commercial opportunities and the public sector should take advantage of reliable information in the private sector technology management systems, and experience in managing costs.

In increase in the cost of tobacco products fell in the “reasonable limits”, British American Tobacco South Africa said shortly after Pravin Gordhan Finance Minister presented the budget.
“For us, this recognition of the Government of serious problems with the illegal trade in cigarettes,” spokeswoman Leslie said Rance. “It is also to blame for the loss of about R4bn in state revenue due to tax evasion on illegal cigarettes.”

Rance says about 28 percent of cigarettes sold were illegal. Tobacco Institute of South Africa expressed similar sentiments and expressed Gordhan to maintain a stable exchange rate for tobacco products.

“Although the excise tax was increased to 58C in a package of 20 cigarettes, it was done to save 52 percent of the tax incidence on tobacco products in accordance with current government policy,” the executive director of the Institute for Francois van der Merwe said.

Mr. Christel Grohmann, director of Grant Thornton Advisory Services, said: “We agree with the Minister, where he stressed that the business must invest in our future – he referred to the 43 planned public infrastructure projects, including transport and logistics, energy and social infrastructure were the main areas. Nevertheless, he provided no clarity, and the role of the private sector or PPP as a whole. ”

Cliff Watson, Executive Director of Tax, Grant Thornton, said: “It is encouraging that there are some tax incentives for small, micro and medium enterprises. Reducing the administrative burden is also welcomed.”

Section of the South African middle class was the biggest losers in the budget this year, the trade union Solidarity said yesterday. “The significant increase in fuel tax, ostensibly exemption from income tax and the implementation of the disputed tolling system on Gauteng roads to the middle class … the biggest losers,” Solidarity scholar Pete Le Roux said in a statement.

“The middle class will have to cut back in other areas, where goods and services became more expensive because of the increase.”

The Union is concerned about the country becomes a welfare state. “At that time, the Minister Gordhan ruled that the global economic problems associated with unregulated capitalism … (Solidarity) are concerned that he lost sight of growing crisis of the welfare state, which was established by the Government and is funded by taxpayers,” said Le Roux .

State targets do-it-yourself tobacco shops for taxes

Dawn of day, the store clerk in DIY tobacco in Bremerton, said that they call their product “smokes” instead of cigarettes; to make a distinction between machines rolled tobacco and manufactured cigarettes Marlboro, as well as a cigarettespub.biz/camel. Customers buy loose tobacco and rolling papers, and then rent a time machine, which can be up to 200 cigarettes in eight minutes.

A carton of smokes costs about $32 while a carton of manufactured cigarettes at a retail location costs about $80.The attorney general’s office introduced Senate Bill 6564 Jan. 30 which aims to roll their machines illegal in Washington State. Roll-your own tobacco advocates argue that the bill, sponsored by tobacco Philip Morris, is a way to crush a little competition.The bill replaced House Bill 2565 which was heard before the Senate and House Jan. 23 and 24 and targeted only the so-called “tax loophole” that sponsors argued these small shops were exploiting. Shops like DIY do not pay a state or federal cigarette tax, which is $30 per carton for Washington state. Instead, they pay a lesser tobacco products tax.

“It will close us down,” Cassie Kroesser, owner of DIY Tobacco, said. “Quite simply, I will have to file for bankruptcy if this bill passes.”

Christine Rolfes 23 districts senator who sponsored the original bill, the categories of tobacco stores as “unregulated cigarette manufacturers”, which makes cigarettes more accessible to people, particularly underage smokers.

Rolfes came out of the new bill, and Karen Keiser, 33rd District senator, became the main sponsor.

“The purpose of the bill is not to put people out of business,” said Rolfes. “It’s to level the playing field. Business model is new, but public health is concerned that the model will grow, if left unregulated. They do not follow the rules of fire safety regulations or public health.”
Rolfes said that there are two issues concerning the deployment of their own cigarettes, and public health and safety. The first is that the cigarettes behind the counter or locked behind glass. Rolfes and 36th district Senator Jean Kohl-Welles believe that the model can give minors access to cigarettes for smokers, they do not have the convenience or grocery stores.

Day argued that the majority of its clients for over 35 years and include “a lot of older people with limited mobility.” It’s just not” teenager stuff” they want to wait for cigarettes.

Day also explained that the store checks the ID of all its patrons in the majority. To use the machine, the client must show their ID, buy a bag of tobacco on the counter and pay rent for the rolling machine to work. Although children are allowed in the shops, Day argued that they can not operate the machine without her knowledge.

Scott Daniels, Kitsap Public Health District deputy director, said that “anything that encourages or promotes the use of tobacco is not something we support.” However, there has been no guidance from the board on this legislation and whether or not cigarette rolling machines pose a public health risk.

“I would prefer that you would not even allow these machines in our state,” said Mary Selecky, Secretary of Health Washington State Department of Health. “But if they are in, they should be by the same rules for all tobacco products.”

The Washington Fire Chief’s Association supported the bill in the House hearing January 24 on the grounds that roll their own cigarettes are not required to use fire-resistant paper, such as industrial cigarettes. A fire safe paper guarantees that the cigarette is lit, if left unattended, said Dylan Doty, a spokesman of the association.

“Cigarettes are the leading cause of house fires across the nation,” Doty said. “By making these folks manufacturers, they then would have to comply with the same rules and regulations for safety.”

Eugene Hall, a smoker and regular customer at DIY, said that the real issue is not about public health but business competition.

“No one says smoking is good for you, but I use her store, because it first opened and it’s a good product that is 100 percent natural without any chemicals and fillers. It is more accurate,” said Hall. “It’s just big names are afraid of competition.”

Korean Grocer’s Association recently filed a complaint two months ago with a committee of Washington Liquor Control that a roll of tobacco shops of their own machines has done their “sales slump” and that tax loopholes unfair to businesses that must pay cigarette taxes, said TC Bentler, Washington representative of the Association of Neighbourhood shops.

Roll-your-own shops in the state have grown from 53 stores to 65 stores since the grocer’s association filed their complaint.

The bill prohibiting roll-your-own tobacco machines was introduced for a first reading in the senate Jan. 31 and awaits a senate floor vote.

 

Raising taxes on cigarettes

Massachusetts smokers will pay more than $ 3 per pack in state taxes by 50 cents hike in cigarette tax state governor Deval Patrick is planning to include in his budget next week, one of a series of revenue proposals that Patrick hopes to generate $ 260 million in new revenue for its spending plan.

Raising taxes on cigarettes will be celebrated for the second time in his tenure; Patrick suggested that a tax increase on cigarettes. In 2008, the Legislature approved $ 1 increase. The tax on a pack of cigarettes will rise to $ 3.01, while the administration will also propose the use of new, higher tax rates on all other tobacco products sold in the state in accordance with the budget chief Patrick.

Under the plan, the governor, Massachusetts would be the fifth largest tobacco tax in the country, but still lower than New York and Rhode Island, said Secretary of Administration and Finance Jay Gonzalez.

Raising taxes will generate $ 73 million in additional revenue, and be dedicated to the Commonwealth Fund Care Trust to cover half the cost of admission of legal immigrants in the state subsidized insurance program as mandated by recent Supreme Court decision of the court.

As in previous years, Patrick also requires a state tax sale of candy and soda, and expanding the bottle bill to include bottled water, juices, coffees and sports drinks. These two proposals would generate $ 62.5 million and $ 22 million, respectively, with $ 5 million from the expansion of bottle bill on recycling programs and $ 10 million from sales tax under the existing formula driven for transportation and school building.

“This is what the Governor has submitted at least once, probably twice before, that has good benefits for public policy that encourages the consumption of foods that are bad for people who are taxpayers more public spending on health,” Secretary of the Management and Finance Jay Gonzalez said.

House Speaker Robert DeLeo, who led the push sales tax hike in 2009, earlier this week told the news service he would wait to see Patrick’s budget, before taking a position on the new charges and taxes for next year, although in the past it remove them at the beginning of the budget process. Legislature has repeatedly rejected calls for tax Patrick candy and soda and expands the bottle bill.

“That does not mean that we still do not believe that they are the right thing to do, especially those who have public health benefits, and there is a lot of public support for them, and that’s why the governor thinks it’s important to look them, “Gonzalez said.

House Minority Leader Brad Jones immediately criticized the plan, arguing that the state should find other ways to balance the budget, not to pull money out of the economy.

“Is it part of a plan to help balance the budget in New Hampshire?” Said Jones, calling the announcement “on Friday afternoon news dump,” which he predicted that “go up in smoke.”

Gonzalez said that the “compromise” that these new proposals would reduce revenues to programs that are “largely on their last legs.” He declined to estimate the extent of cost reductions that will be included in the budget for Patrick.

Among other lucrative offers that Patrick is planning to include in its budget delay in FAS 109 output, which was part of the corporate tax reform passed in 2008, giving some of the larger number of public corporations a deduction to absorb the costs incurred by the new combined reporting requirements. Delaying the implementation for one year would allow the state to keep $ 46 million in revenue, according to Gonzalez.

The administration will also recommend the use of motel / hotel excise tax on the full cost of the rooms, including the layout of online brokers, for $ 7 million in revenue.

Two proposed changes to corporate tax legislation will include a new calculation for corporate sales taxes based on consumption rather than sale of origin, which allows Massachusetts companies that sell products outside the state to pay less, while outside the company selling in the Bay State consumers will pay more.

Branches of insurance companies that do not perform insurance-related business will be taxed as a general corporation and not for investment, as insurance companies are currently taxed. Two corporate tax changes would net the state $ 17 million.

Governor’s budget also would recommend the elimination of the tax deduction for the loss of Lottery tickets for $ 500,000, investments in technology to better identify and collect uncollected taxes and understated by $ 22.3 million, $ 5.8 million increase in agency fees, as well as $ 5 million in advertising revenue for public web sites and vehicles.

Administration officials were not immediately available a list of fee hikes, but Gonzalez said the Department of Environmental Protection relating to the fee exemption will be raised to support the agency’s budget.

Massachusetts received a grade of “F” to “severely undefended proven tobacco prevention and cessation programs,” with the state this year to spend less than 1 cent at preventing children from smoking for every $ 1 it receives in tobacco-related income, in accordance with an annual report released on Thursday the American Lung Association.

The report Massachusetts Class “B” for its cigarette tax, noting loophole allowing lower tax on candy flavored chewing tobacco, tobacco products, soluble tablets and mini-cigars.

Massachusetts also received “F” for lack of coverage services and treatment to help smokers quit, but “” for smoking in the workplace law, which was approved in 2004.

Association and the Tobacco Free Tobacco estimate the mass killing of more than 8,000 people a year in Massachusetts, accounting for 10 percent of government health care costs, or more than $ 4.5 billion a year.

Monitor Cigarette Sales to Protect Tobacco Payments

A state panel today supported a request from the Department of Taxation for $260,000 to hire a team of auditors to track cigarette sales of cigarettes to protect $ 40 million per year payment to Nevada from the country’s largest company’s tobacco.

As would be $ 360 million paid to the state since 2003 is under threat from Nevada comes in arbitration for annual payments made by the largest companies in the country of tobacco as of 1998 Master Settlement Agreement (MSA), said William Chisel, director of the Tax Department.
“The stakes are high for arbitration,” he said. “The risk of losing a significant amount of money increases over the years if we do not institute this team.”

The tobacco payments help fund the Gov. Kenny Guinn Millennium Scholarship for eligible Nevada high school graduates, among other programs.
The Board of Examiners, made up of Gov. Brian Sandoval, Attorney General Catherine Cortez Masto and Secretary of State Ross Miller, approved the request for the funding from the Legislative Reserve Fund on the establishment of three law enforcement. Masto was not present at the meeting.
Legislators who work in the committees of the Senate and Assembly will meet in money as the Interim Finance Committee February 9 to consider the request.

Sandoval asked Chisel if the request should have been presented to the 2011 Legislature so tobacco funding could have been used to fund the unit. The attorney general’s office said the funding from the master settlement agreement has historically funded its oversight of the tobacco agreement, but that the Tax Department has not been funded in this way.

Sandoval said that the cost of the unit must be built into the next budget with tobacco funds identified as a source of funding.
Chisel said it is important for the state to control the sale of cigarettes at tobacco companies, which are not part of the master settlement agreement.

As part of the MSA, there is a requirement that these smaller companies set aside a portion of their tobacco sales in an escrow account in an amount proportionate to the payments made to the state by the major tobacco companies. The MSA provides for a reduction of the required annual payments by the major tobacco companies to any state which fails to adequately enforce these laws in a particular calendar year.

Chisel said the team will work to protect the payments that have already been made to the state.
“Well, we are in arbitration right now with big companies and tobacco our concern is that we want to keep track of these non-participating manufacturers, those that do not communicate with the MSA,” he said. “We have a responsibility to make sure that they pay into the escrow account of two cents per cigarette. At stake is $ 40 million we get every year for the payment of mission subsistence allowance.”
Nevada does not keep track of these sales and payments before, and it would reduce the risk of losing part of the MSA payments in the arbitration process, the drilling said.