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The tradition of bringing back hundreds of cheap cigarettes from holidays abroad is about to go up in a puff of smoke.

Proposals are currently being examined which would see a dramatic increase in the tax on tobacco throughout the EU region. The moves are being made after research by the World Bank showed that burning a hole in people’s pockets is the best way to reduce the level of smoking.

Experts say that the proposed increase would cut the number of smokers by an average of 10pc over the next five years.

It is thought that changes will have the biggest impact in Poland where they expect more than 20pc to give up as a result of price increases.

The proposal outlined by Taxation Commissioner, Laszlo Kovacs, is for a gradual increase in EU minimum taxation levels on cigarettes and fine-cut tobacco up to 2014.

It would also remove loopholes that allow some cigarettes or fine-cut tobacco to be presented as cigars, cigarillos or pipe tobacco and so benefit from a lower tax rate.

The plan also aims to bring tobacco taxation levels in line across all 27 EU member states.

At the moment, the difference in taxation can be as high as 600pc leading to intra-EU tobacco smuggling especially in the new member states.

The level of smuggling varies across the EU and accounts for up to 9pc of the EU tobacco market. But in some major markets this is as high as 20pc. The countries most susceptible to illegal tobacco are those closest to Russia and other markets that do not impose high tax on cigarettes.

Mr Kovacs said it would also make the taxation rules more transparent, and create a level playing field for manufacturers and give flexibility to member states to set minimum taxes.

Washington - A new study has found that manufacturers are deliberately manipulating menthol content in cigarettes to attract young people.

Researchers from Harvard School of Public Health found that the tobacco industry is intentionally adjusting menthol to create a milder experience for the first time smoker.

Menthol covers the harshness and irritation of cigarettes, allowing delivery of an effective dose of nicotine, the addictive chemical in cigarettes.

"For decades, the tobacco industry has carefully manipulated menthol content not only to lure youth but also to lock in lifelong adult customers," said Howard Koh, Professor and Associate Dean for Public Health Practice at HSPH and a co-author of the paper.

A team of researchers led Jennifer M. Kreslake, a research analysis from the Tobacco Control Research Program at HSPH analysed the internal tobacco industry documents on menthol product development, and conducted laboratory tests to measure menthol content in U.S. brands, examined market research reports

She also drew data from the 2006 National Survey on Drug Use and Health, an annual nationally representative survey among U.S. residents aged 12 years and older

The industry documents revealed that tobacco companies researched how controlling menthol levels could increase brand sales among specific groups.

The companies determined that products with higher menthol levels and stronger perceived menthol sensation suited long-term smokers of menthol cigarettes while milder brands with lower menthol levels appealed to younger smokers.

According to a 2006 study, 43.8 percent of current smokers aged 12 to 17 years reported that they used menthol cigarettes as did 35.6 percent of current smokers aged 18 to 24 years.

By contrast, 30.6 percent of smokers older than 35 years reported menthol use.

The authors suggest, "to protect the public health, tobacco products should be federally regulated, and additives such as menthol should be included in that regulation."

"This is another example of the cynical behavior of the tobacco industry to hook teens and African Americans to a deadly addiction. This is after the industry told the American public it had changed its marketing practices. The FDA bill provides the vehicle to end the hypocrisy and save the lives of the young and a targeted minority group," said Gregory N. Connolly, Professor of the Practice of Public Health and director of the Tobacco Control Research Program at HSPH.

The study appears in the online "First Look" section of the American Journal of Public Health.

Two tobacco companies are battling it out at Competition Commission Tribunal hearings.

At issue is access to retail channels.

The tribunal’s ruling is likely to affect the cigarette brands that are immediately visible to consumers at retail outlets.

Japan Tobacco International South Africa (JTISA) has accused British American Tobacco South Africa (Batsa) of being involved in conduct aimed at denying its competitors access to various retail channels.

These include hotels, restaurants and cafes.

JTISA manufactures brands that include Winston, Camel and Benson & Hedges.

Batsa’s flagship brands include Peter Stuyvesant, Dunhill and Kent.

JTISA lodged a complaint with the Competition Commission in 2003, saying Batsa was the dominant cigarette manufacturer in the country.

The Federal Government’s top adviser on preventative health, Dr Rob Moodie, says increasing the tax on tobacco would be a very effective way to curb smoking.

The Government is set to reap $2 billion in extra revenue after it increased the tax on the sweet, ready-mixed alcoholic drinks which it says are responsible for a significant rise in binge drinking, particularly amongst young Australian women.

Dr Moodie, chairman of the National Preventative Health Task Force and professor of global health at Melbourne University’s Nossal Institute, says it is time to act as there has been little movement in the price of cigarettes in the past decade.

"One of the major successes, I guess, in Australia’s battle with tobacco over the last 10 to 20 years has been an increase in price - gradual - but it hasn’t increased over the last 10 years," he said.

"It’s now time we did increase the cost of cigarettes, [which are] after all, the major killer in Australia.

"We know that if for example we added an extra 2.5 cents to every cigarette stick, that would across the board drop consumption by nearly 3 per cent.

"It’s a major contribution to public health."

Dr Moodie says that increasing tax on cigarettes could be instituted relatively rapidly.

But a recent study published in the American Journal of Public Health questioned the effectiveness of price increases to cut consumption, and raised concerns about the burden placed on poorer smokers.

Dr Moodie says funding for quit smoking programs would address these concerns.

"Certainly the work that Quit Victoria have been doing on this, still shows that there is a very close relationship between price and consumption," Dr Moodie said.

He says money raised by this increased tax, suggested at the recent 2020 summit, should go towards a national preventative health agency.

A meeting of emergency services ministers in Canberra on Wednesday deliberated upon the need for introducing "fire-proof" cigarettes that get extinguished on their own as the smoker drops the butt, a measure that may help reduce the risk of fires in homes and the bush.
New South Wales (NSW) Emergency Services Minister Nathan Rees moved the resolution to make the reduced fire risk (RFR) cigarettes, which are already produced overseas in Canada and New York, mandatory under the Trade Practices Act as early as next year.
"We hope this will be law by early 2009, requiring all cigarettes manufactured and sold throughout Australia to be self-extinguishing," the Daily Telegraph quoted him as saying.
"Every day’s delay is another day we live with the risk that someone will be killed or injured or homes or bush land destroyed because cigarettes keep burning when they are dropped or thrown from a car window," he added.
Each year, around 4500 fires are caused by cigarette ignitions in Australia. Fires, directly attributed to cigarettes, claimed about 65 lives between 2000 and 2005.
A significant decline has resulted in fire deaths in New York since the introduction of RFR cigarettes in New York in 2004, according to preliminary data.
According to NSW Fire Brigades, a normal cigarette dropped on furnishings may start a fire in less than 18 minutes, whereas an RFR cigarette extinguishes on its own.
Rees said that some people in the industry had expressed non-acceptance to the introduction of the RFR cigarette, complaining about costs, difficulties in testing, and compliance and production lead times.
"NSW does not accept that the industry needs an 18-month to two-year time frame to introduce these cigarettes, which are already being produced and sold in Canada and a number of states in the US," he said.
The newspaper report says that the Australian tobacco industry is concerned that no testing has been done to ensure that the cigarettes do not pose a further risk to smokers’ health.