Thailand to Increase Taxes

Thailand should step by boost excise tax on smoking products as part of attempts to decrease the actual number of cigarette smokers, as taxes on cigarettes do not have positive effect, according to Prakit Vathesatogkit, a leading tobacco advocate. He explained that the improper tax structure between cigarette and tobacco was the most fragile factor in the country's unsuccessful initiatives to minimize the rate of smokers.
The small tax charged on tobacco lead to price discrepancy between cigarettes and tobacco. Thus, anytime the government increases the tax on cigarettes, many cigarette lovers switch to smoking products that are much cheaper or roll their own. The latest review stated that cigarette users spend approximately 586 baht per month purchasing cigarettes manufactured by tobacco companies, but smokers who roll their own smokes spend just 37.5 baht a month. "This is a key aspect in the fiasco over the many years of attempts to decrease the rate of smokers, who currently constitute about 14 million, and half of them roll their own smokes," stated Dr. Prakit, representative of the Bureau of Tobacco Control.
The government's most recent increase in the tax on tobacco products in August resulted in imported tobacco products rising in price by 9-10 baht per package of 20, and 5-6 baht for domestic brands. Imported brands are sold at 90 baht per package while Thai brands are available at 37-85 baht a pack. The government has increased the excise on cigarettes to one satang for every gramme of tobacco. Moreover it lifted the tax on tobacco products to approximately 87% of cost plus one baht per gramme of the cigarette. Nevertheless, the latest rate is still smaller than the upper limit established at 90% of value and three baht per a gramme per cigarette. For instance in 2011, excise on tobacco products and alcohol resulted in 57 billion in earnings based on a single-phase.
A week ago Dr. Prakit joined the Fifth Session of the Conference of Parties to the WHO Framework Convention on Tobacco Control in Seoul. He stated that the 175 participants agreed to establish a requirement to implement tax and price procedures for tobacco regulation requirements under the guideline that an efficient tax program will help minimize tobacco use as well as aid stop dependency among teenagers. It was decided that all participants should increase the efficiency of tax collection on tobacco, mostly to avoid the cigarette industry intervening in tobacco tax policy.

40% of All Cigarettes Sold in New Jersey are Smuggled Illegally

According to statistics 40% of all tobacco products smoked in New Jersey is brought illegally into the state, this is the highest percentage of any state in the nation, leading to a loss of more than $500 million in uncollected tax revenue annually.
The reason is evident: New Jersey set a $2.70 tax on each package of cigarettes sold, which is one of the highest rates in the nation.
Criminal gangs and various people operating with terrorist groups obtain a quick profit by smuggling a great number of cigarettes from other states and selling them in New Jersey. So, each day, smokers in New Jersey try to evade the high tax by ordering smoking products on the internet stores or go to the neighboring states, usually Delaware, where the price is very low.
“New Jersey faces a consequential problem from tobacco tax avoidance and smuggling. A growth in the rate of tax assessment will lead to fewer legal and even completely illicit sales of tobacco products,” said the author of report, Eric Friedman.
The given report which is the first official data on the financial toll tobacco smuggling takes on the state also raises questions about whether New Jersey is doing enough to fight this problem.
The calculated $519 million in uncollected tax revenue, approximately 1.5% of the 2012 budget, is similar to the amount increased by the controversial millionaire’s tax in 2009.
The great amount of cigarettes, smuggled into the state, nearly 75%, is brought by those who want to get into big money, the report said. Very often, retailers of illicit tobacco products use lower-priced, counterfeit tax stamps in order to evade detection.
Charles Giblin, a police officer at the Office of Criminal Investigation, declared that smuggling arrests have increased from 40 in 2009 to 187 last year.
Currently police officers arrested a 63- year-old man, who was buying cigarettes in Virginia for approximately $35 per carton and sold them at his shop for already $58. On the average, a carton of cigarettes is sold for $80 in New Jersey.
According to County Prosecutor’s Office, this man was selling about 500 cartons per week, which cost the state about $13,500 in lost tax revenue. When police screened his car, there were found more than $80,000 in cash.
“We are going to use whatever means and powers we have in order to eradicate smuggling once and for all. We also plan to introduce modern tax stamps, which will conceal codes that include information of each package of cigarettes. At present, retailers and enforcement officials use hand-held scanners, which show if a stamp is authentic, and also where the pack came from and where it has been,” Giblin said.

One of the oldest cigar makers shuts down its plan

Florida will fell short of one of its iconic cigar plants in later this summer when Hav-A-Tampa closes its factory, which has been working since 1902 and fires almost 500 employees.
Hav-A-Tampa revenues were hit dramatically by constantly increasing tobacco taxes and strict indoor smoking policies that have obliged smokers to go outside for a puff.
Altadis Inc, the owner of Hav-A-Tampa made public their decision to close the plant on Thursday during a special press-conference.
The major part of employees was involved in manufacture of legendary Jewel cigars, Hav-A-Tampa's top-seller. According to Kevin Barlow, head of plant’s human resources department, many employees have been working there for 15 years or even more, with even one worker who has been employed for 50 years.
Altadis made desperate efforts to keep the factory going, but was unable to overcome dramatic sales decline caused by the economic downturn and landmark tax on cigars.
The manufacture would be transferred to another plant owned by Altadis and situated in Puerto Rico. The owner also decided to keep the Florida distribution center open.
After hearing the news of plant’s closure, Hav-A-Tampa workers were trying to figure out if they would be able to get new work in an state where the unemployment rate reached 10 percent last month.
Debra Barker, a Hav-A-Tampa worker admitted that she has been working at the plant for 15 years and there have been people who have been there even more. She said that she would get another job since she had a higher education, but it would be very difficult to get a decent job for other people who had been working at the plant after graduating from school.
Atladis spokesman said that a combination of several factors affected Hav-A-Tampa revenues, among which were the economic downfall, growth of unemployment rates and implementation of smoking bans in enclosed public places. The strict smoking bans have essentially hit revenues in central and northern states, where it's impossible to go outside in order to smoke a cigar in the winter.

More Cigarettes More Health Problems

A recent study found that smokers have more migraine attacks than non-smokers. But a research published in The Journal of Headache and Pain indicated that smoking could ameliorate migraines by reducing anxiety, one of the main factors that spark an attack.
One advantage of this study is that the sample used, 361 medicine students from the University of Salamanca, were fully informed about what a migraine was. Most surveys which studied the migraine in smokers are done in people without knowledge of the illness, but this recent study tried to found about the presence or absence of migraine and whether or not they smoked in people knowing everything about this disease.
At the end of the investigation was found that 16% of students fulfilled migraine criteria, while 20% smoked. But the percentage of smokers was higher (29%) in those who were also migraine sufferers and migraine frequency in those students who were migraine sufferers and smokers was clearly higher than in those who were non-smokers and migraine sufferers.
According to this last study, smoking is a precipitating factor of this type of headache, as the influence of active smokers is one third higher in migraine sufferers and there is a direct relationship between the number of cigarettes smoked and the frequency of migraine attacks.
At the end of the study researchers became more stressed, because they assure that the tobacco dosage play a very important role in migraine sufferers. The study results detected that the migraine sets in after five daily cigarettes.
Moreover, although the percentage of those who smoked was higher in people with migraines, they smoked less than those who did not suffer migraines. This is because they knew that if they will smoke more than five cigarettes a day, they would be more likely to have a migraine attack.
The neurologists argued that in no case should a migraine sufferer be advised to smoke thinking that it is going to improve their migraines.