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June 20, 2008

Tobacco companies do battle

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.

 

May 6, 2008

Don’t falter on cigarette tax hike

An increase in the state cigarette tax is long overdue and the Legislature should approve one this session. But lawmakers shouldn’t rush into the Medicaid expansion recommended by the Senate Finance Committee. Something less ambitious is needed.
Last month, the Finance Committee approved, for the second year in a row, a major expansion of the state Medicaid program. Critics reasonably question whether the receipts from a 50-cent tax will be enough to cover the cost.
Sen. Larry Grooms, R-Berkeley, argues that the program expansion will be followed by an increase in participation that can’t be sustained by the tax hike.
Sen. Grooms, led an effort to use anticipated tax revenues, some $159 million, to provide tax credits to small companies for medical insurance for the working poor. That plan has the benefit of engaging the marketplace in a health care solution.
Senate President Pro Tempore Glenn McConnell says the Finance Committee plan for expanding Medicaid doesn’t have sufficient support in the full Senate for passage.
The Senate leader supports the tax credit idea, but says revenue from the tax hike also could be used to bolster the previous Medicaid expansion for children, as well as educational programs aimed at reducing tobacco use among young people. His compromise is worth exploring.
At 7 cents a pack, the state tax on discount cigarettes is the lowest in the nation, and hasn’t been increased in 20 years. An increase would raise money for health care programs but, as important, would likely reduce cigarette consumption, based on the experience elsewhere.
That in itself would be a step forward in the state’s general health and well-being.
The Legislature should recognize the general health care benefits that can be gained from taxing cheap cigarettes and move toward a solution that can be enacted this year.

April 22, 2008

Australian legislation on the way to ban flavoured cigarettes

As a result of an agreement between state and federal health ministers, the sale of flavoured cigaretteswill be banned in Australia.
Nicola Roxon the Federal Health Minister met her state counterparts in Melbourne at the Australian Health Minister Conference last week in order to thrash out a range of health issues.
Ms Roxon says the cigarette ban will target tobacco products flavoured either with chocolate or fruit flavours with the intention of enticing children and young people to smoke.
A ban on their importation is being considered and although the sale of the flavoured cigarettes is already banned in some states including NSW and South Australia, lemon, orange, strawberry and apple flavoured cigarettes are currently available alongside regular flavoured cigarettes in several states and territories.
The ministers have also agreed to draw up national regulations and guidelines for the use of solariums in order to help ensure young people do not risk getting skin cancer.
They plan to utilise steps already taken in Victoria to regulate the solarium industry and Ms Roxon says have adopted some national principles that will be put in place.
A $15 million funding boost will also give health workers greater access to specialised mental health training and go towards training 24,000 health workers to enhance their skills when they are dealing in particular with patients with complex mental health problems.

April 18, 2008

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April 11, 2008

NY’s Cigarette Tax May Hurt Businesses

A hike in New York’s cigarette tax has at least one mom and pop’s shop worried about sales. The hike is part of the state budget passed on Wednesday.cigarettes
Sue Richter owns a convenient store in Pine Valley. She says the cigarette tax increase will cut her cigarettes sales by half. Richter says that’s what happened in 2002 when the state last raised it.
“It really has impacted my business quite a bit because when people don’t come in for cigarettes, they also don’t come in to buy their soda, gas, or other things so my total sales go down,” says Richter.
New York State lawmakers approved the tax hike in this year’s budget. The tax will go up by a $ 1.25, making the total $2.75 per pack of cigarettes. That puts New York ahead of New Jersey for the nation’s highest cigarette tax. The move will raise about $265 million for health programs.
“I typically sell 200 cartons a week and I expect that to go down to about 100. That’s what happened last time when the state legislature put such a high tax increase,” says Richter.
Smokers aren’t surprised by the hike and say they’ll continue to pay for a habit they enjoy.
“To me it really doesn’t make a difference. I mean if you smoke, you just got to hustle a little a bit harder if you want cigarettes,” says Andrew Owens from Elmira.
“I probably have to go get a job and then buy cigarettes that way,” says Zach Fields of Elmira.
“I’m cutting back anyway but I think that’s crazy. Besides most people are going to PA any to buy cigarettes,” says P.C Benson from Elmira.
Again, in New York you’ll pay an additional $2.75 on a pack of cigarettes. By comparison, you’ll only pay an additional $1.35 in Pennsylvania. The new cigarettes tax hike in New York will take effect June 3rd.

April 8, 2008

Behind the counter proposal for cigarettes

Shopkeepers could be banned from displaying cigarettes under Government plans.
The Department of Health said it was launching a consultation to look at ways to stop children smoking. In a bid to cut the number of smokers and prevent children taking up the habit, ministers have drawn up proposals including a bar on displaying tobacco products and the removal of pub vending machines. cigarettes
Measures making it easier to sell nicotine replacement gums and patches are also on the table. The proposals follow on the July introduction of the ban on smoking in public places.
According to the Department of Health, the strategy - coupled with wider smokefree legislation - will save hundreds of lives. Someone who starts smoking at 15 is three times more likely to die of cancer due to smoking than someone who starts in their late twenties, the department said.
Public Health Minister Dawn Primarolo said: "Children who smoke are putting their lives at risk and are more likely to die of cancer than people who start smoking later. It’s vital we get across the message to children smoking is bad. If that means stripping out vending machines or removing cigarettes from behind the counter, I’m willing to do that." According to the latest figures from the Office for National Statistics, the proportion of adults who smoke has dropped by two per cent from 24 to 22 per cent. About 165,000 smokers quit between April and September - an increase of 28 per cent compared with the same period the previous year.
The Government has set a target of reducing the proportion of smokers in England to 21 per cent by 2010. In this year’s Budget, Chancellor Alistair Darling increased the duty on tobacco, adding 11p to the price of a packet of 20 cigarettes and 4p to five cigars. He said the Government was continuing the five per cent reduced rate of VAT on smoking cessation products beyond June 30.
Mark Littlewood, communications director of liberal think tank Progressive Vision, said: "Cigarettes are a product for adults and steps need to be taken to prevent youngsters buying them. But banning the display of cigarettes would be petty, pointless and patronising."

March 21, 2008

India’s tobacco exports to Russia slips by 92 pc

India’s tobacco and cigarettes exports to Russia have declined by over 92 per cent to 144 tonnes in February, compared to 1,576 tonnes in the same month last year, mainly due to Moscow imposing a ban on the commodity.
"The ban has affected exports to Russia. Especially in February, the overseas sale has slided significantly," Tobacco Board Chairman J Suresh Babu told PTI.
The total exports flu cured Virgina tobacco stood at 114 tonnes in February, against 1,576 tonnes in the corresponding period last year. While in value terms, exports slipped to Rs 36.01 lakh, from Rs 1235.08 lakh, the Board said.
Russia, one of the top export destinations for Indian tobacco, had imposed a ban on Indian commodities including tobacc.
FCV tobacco known for its lower nicotine and tar content has a major share in cigarettes blends.
Meanwhile, export to other countries like Belgium increased to 1,178 tonnes in February, from 843 tonnes in the same month last year, the Board said.
The country’s total FCV tobacco export increased by 11 per cent to 1.13 lakh tonnes during the first 10 months of the current financial year, compared to 1.02 lakh tonnes in the previous year.
India produces about 700 million kg of tobacco annually, out of which 30 per cent is FCV tobacco. On an average, 50 per cent FCV tobacco is used by the domestic cigarettes industry, while the rest is exported.

March 18, 2008

Harry Potter is now Harry Puffer

LONDON: The warning ‘Smokers Die Younger’ doesn’t seem to ring a bell with superstar Daniel Radcliffe who has been nicknamed ‘Harry Puffer’ by his co-stars for puffing about 20 cigarettes a day.
The young wizard rushes to light a stick whenever the director yells "Cut" and has now been advised by one and all on the set of the new Hogwarts movie to kick the butt.
The teenage star finishes around a pack per day and has pals, including fellow Potter star Rupert Grint, pretty worried.
"Daniel has recently been smoking up to 20 cigarettes a day. Every time they call ‘Cut’, he lights up. It’s disgusting. Friends and co-stars including Rupert Grint have been warning him about the dangers of smoking. But he doesn’t take any notice," The Sun quoted a source, as saying.
Also worried are the producers of the final flick in the series, who believe that his puffing habits may destroy his schoolboy image. They have now warned him not to be seen smoking in public.
"He’s been having late nights out with stars like Kevin Spacey and Stephen Fry and seems to have picked up bad habits from the luvvie set," revealed the source.
In fact, Radcliffe was so nervous doing a stunt himself and turned to his cigarettes while his double was absent.
"He was sparking up constantly," said the source.

March 14, 2008

Wisconsin Senate passes fire-safe cigarette bill

MADISON, Wis. - Wisconsin businesses would have to sell fire-safe cigarettes that automatically extinguish when they’re not being smoked under a bill that has passed the state Senate.
The measure now heads to Gov. Jim Doyle for his consideration. The Assembly has also passed it.
Wisconsin would join 22 other states in allowing only fire-safe cigarettes to be sold. Firefighters and emergency responders support the measure.
Tobacco companies have not fought it. R.J. Reynolds Tobacco Company plans to voluntarily switch all its cigarettes to the fire-safe kind by the end of next year.

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