Malaysia - new tobacco tax should be positive for multinationals..

January 2, 2009 - Malaysia's new floor price of MYR6.40 ($1.86) for a pack of 20 cigarettes will be positive for the multinationals, according to Maybank Investment Bank Bhd, because it narrows the gap between extremely-low priced and value-or-money cigarettes.

The new minimum retail comes into effect on January 1. The new regulations, aimed at discouraging smoking among underage and lower-income consumers, will also prohibit promotional prices for cigarettes, although price discounts of not more than 5 percent are allowed up to three times a year.

Maybank noted the measure was unlikely to impact overall cigarette consumption, as contraband accounts for nearly 40 percent of Malaysian cigarette sales.

Reference: New Floor Price Augurs [good omen] Well for Industry, Source: Tobacco Reporter, TobaccoChina.com, 12/31/2009.

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Komtar, Penang, Malaysia smoking ban strictly enforced..;
Malaysia student forced to smoke 40 cigarettes in two hours..
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Malaysia: Are tobacco control measures working? - WHO thinks so...;
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Malaysia - youth and student smokers may not receive aid from government..

January 2, 2010 - KUALA LUMPUR, No-smoking may be made a condition for youth and students to receive aid from the government. Youth and Sports Minister Datuk Ahmad Shabery Cheek said the proposal was raised as many people, including youth and students, could still afford to buy cigarettes despite several price hikes.

"They say they are poor, have nothing. But if they can buy cigarettes, we (may) say you are not qualified to receive any aid," he said at a news conference after chairing a meeting of the National Youth Consultative Council (MPBN) and launching the 'Ekspedisi 1Belia 1Malaysia' organised by his ministry with the cooperation of the Youth and Sports Council.

Ahmad Shabery said this when asked to comment on the announcement by Health Minister Datuk Seri Liow Tiong Lai yesterday that beginning January 1 the minimum price of cigarettes was fixed at RM6.40 (1.87 USD) for a 20-stick pack or 32 sen for a stick.
The move was to reduce ability to buy cigarettes, especially among the young and the low-income group, besides curbing cigarette promotion through the giving of discounts.

Ahmad Shabery said government aid like for the hardcore-poor housing programme or other aid for those who can afford to pay for cable TV or smoke cigarettes also needed to relooked at. He said although the move was not in any law it should be considered.

On the proposal that tax money on cigarettes be used to promote other sports other than football, Ahmad Shabery said he will forward a proposal to the Finance Ministry.

The expedition involves 70 participants to cross 10 states. It starts today and ends on January 2 in Lenggong, Perak and is intended to provide education and accurate information to youth about the '1Belia 1Malaysia' programme.

On MPBN, Ahmad Shabery said various views had been put forward on the economy, education and programmes that needed to be implemented.

"Besides that, the National Youth Council will forward comprehensive proposals to internationalise the youth movement by having networking with neighbouring countries like Indonesia and others.

Reference: NO-SMOKING CONDITION MAY BE IMPOSED FOR GOVT AID, Bernama (Maylasian News Agency), 12/29/2009.

Malaysia - related news briefs:

Malaysia - two tobacco control regulations starting January 1, 2010..
Malaysia - about 368,000 teenager smokers in the country, 50-60 added per day..;
Malaysia - sale of cigarettes in packets of less than 20 prohibited as of June 1, 2010..;
Malaysia - stepping up efforts to curb the trade in illicit cigarettes..;
Malaysia - BAT plans to dispose of a parcel of industrial land..;
Malaysia - ban on cigarette sponsorship for sports will not be withdrawn..;
Malaysia - cigarette-shaped sweets packaged like cigarettes;
Malaysia - Penang consumer group ban cheap cigarettes and increase price on premium..;
Malaysia - Kelantin State Government may not promote staff who smoke..;
Malaysia - excise duty increased on tobacco - another increase could be coming this month..;
Malaysia - smoking limits your quality of life..;
Malaysia - smoking civil servants in Penang to receive free nicotine treatment..;
Malaysia - illicit cigarettes, BAT wants government to slow excise duty increases..;
Peninsular Malaysia - one of three cigarette packs is either contraband or fake..;
Komtar, Penang, Malaysia smoking ban strictly enforced..;
Malaysia student forced to smoke 40 cigarettes in two hours..
Malaysia - PSD and Cuepacs are at odds over the no-smoking rule at government de­­partments and agencies..;
Malaysia: Are tobacco control measures working? - WHO thinks so...;
Malaysia - slowdown in cigarette consumption..;
Malaysia - January 1, 2009 pictorial cigarette warnings..;
Malaysia to hike cigarette prices..;
Malaysia - 25% of all cigarettes sales are illegal...Peninsular Malaysia - one of three cigarette packs is either contraband or fake..;
Komtar, Penang, Malaysia smoking ban strictly enforced..;
Malaysia student forced to smoke 40 cigarettes in two hours..
Malaysia - PSD and Cuepacs are at odds over the no-smoking rule at government de­­partments and agencies..;
Malaysia: Are tobacco control measures working? - WHO thinks so...;
Malaysia - slowdown in cigarette consumption..;
Malaysia - January 1, 2009 pictorial cigarette warnings..;
Malaysia to hike cigarette prices..;
Malaysia - 25% of all cigarettes sales are illegal...
Read more...

Kansas - cigarette tax hike likely in 2010..

January 2, 2009 - WICHITA, Kan. – Smokers in Kansas may pay more next year. Gov. Mark Parkinson plans to ask lawmakers to increase tobacco taxes in 2010, according to a report from KSCW (TV station). The money would be used for either health-care programs or the general fund.

Right now smokers pay 79 cents per pack in taxes. By raising that tax to the national average of $1.34, Kansas would raise $88 million next year, according to the report.

"It seems like tobacco is always a target when the government is trying to raise money," Vas said. "I don't think that's fair at all." Vas would prefer lawmakers look at taxing other industries that are considered unhealthy. "Fast food is a perfect example. It's too cheap and easy to buy a Big Mac, and that impacts how many people?" Vas said.

The governor will announce his formal plans on tobacco next year. Senate president Steve Morris said he'd support a tobacco tax increase. He said it's probably the only tax increase that has any chance of getting through the legislature.

Reference: Kansas Cigarette Tax Hike Likely Governor proposes boost from 79 cents to $1.34, CSP Daily News, 12/31/2009.

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Read more...

Bulgaria - price of cigarettes increases..

January 1, 2010 - Bulgarian smokers will have to swallow a raise in excise duties on cigarettes and their prices as of January 1, as the government struggles to curb smoking and relieve the health care system. Bulgaria - map..

Under a decision that the parliament took at the end of November, a BGN 101 (74.02 USD) excise duty for 1000 cigarettes is introduced instead of the previous BGN 41 (30.05 USD), while the proportional tax is 23% of the sales price instead of 40,5%. The latter will affect mostly expensive cigarette brands.

The tax for tobacco for pipes and cigarettes is set at BGN 100 per kg.

The new duties increase the price of a pack of cigarettes anywhere between BGN 1,10 and 1,40 making the price of the best-selling “Victory” brand BGN 5 (3.66 USD) instead of the current BGN 3,40 (2.49 USD).

Opponents to the tax hike claim that it will boost cigarette smuggling and may lead to the bankruptcy of the dominant state cigarette maker Bulgartabak.

Bulgaria has the second highest percentage of smokers in Europe and plans to ban smoking in all public spaces as of June next year.

Reference: Bulgaria Introduces Staggering Cigarette Tax Hike, novinite.com (Sofia News Agency), 1/1/2010.

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Bulgaria is marking Tuesday, November 10, 2009, the 20th year since the internal coup at the Bulgarian Communist Party which led to the crumbling of the communist regime..
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Cyprus - starting January 1, 2010 blanket ban on smoking in all public spaces..

January 1, 2010 - NICOSIA - One of the last bastions of smokers will be stubbed out when Cyprus joins the ranks of its European Union peers in a blanket ban on smoking on January 1, 2010.

Background: The Cyprus parliament voted by a large majority on Thursday, July 9th to make the Mediterranean holiday island the latest EU country to ban smoking in bars, restaurants, nightclubs and workplaces. The bill, which tightens up existing legislation that has gone largely unenforced, was carried by 27 votes to three in the 56-seat parliament with one abstention. (Cyprus to tighten smoking ban starting January 1, 2010..

At the stroke of midnight, Cypriots will be able to savour their last legal puff in public before being liable for on-the-spot fines or dragged to court if caught lighting up in a public place. "As harsh as it may sound, it's an important new year gift to Cypriots," said Christos Patsalides, Cyprus's health minister.

Data suggests some 25 percent of Cypriots smoke, but many more are passive smokers -- surveys have shown children to have high levels of nicotine in their blood by being exposed to tobacco smoke virtually everywhere.

The law introduces a blanket ban on smoking in all public spaces, imposing on the spot fines of up to 37 euros ($53) or, if the case is taken to court, of up to 2,000 euros (2,866.30 USD).

In the case of spot fines, police want the fine upped to 85 euros (121.818 USD). Law enforcement authorities promise to be strict -- except on New Year's Eve because they do not want to be party poopers. "I think some flexibility on New Year's Eve is warranted," said Michalis Katsounodos, a spokesman for Cypriot police. "After that it will be zero tolerance."

The new rules have left restaurant and nightclub owners fuming. "This is the toughest law in Europe after England," said Phanos Leventis, general secretary of the restaurants and nightclub owners association, an industry group representing 3,500 businesses.

The ban tightens an existing law, introduced in 2002, which banned smoking in public places but allowed establishments to have proper ventilated spaces for smoking patrons. Anti-smoking groups say it was precisely because that law was flouted that a tighter ban was warranted.

"We are not against smokers. They could be our children, our friends and colleagues. But we are against the habit of smoking and this law will help them see that they can go without a cigarette for one or two hours," said Stelios Sycallides of the Non-Smokers League.

But Leventis said the sector is already suffering a 40 percent decline in business this year as global economic turmoil hit Cyprus and more people were turning to cheaper forms of entertainment at home. "This is just another blow to the industry," Leventis said.

Reference: Cyprus nightclub owners fume over Jan 1 smoking ban, by Michele Kambas (Editing by Paul Casciato), Reuters, 12/30/2009; Cypriot smokers face tough anti-smoking law, Behaviorial Health Central, 12/31/2009.
Read more...