Category: News This Week

Experts: South Africa Should be Weary of Vape Tax
Imposing excise on vapor products in a country like South Africa could prove detrimental, instead encouraging the kind of illicit trade that was seen for contraband cigarettes during the Covid-19 hard lockdown, Vapour Products Association of South Africa (VPASA) has warned.
Credit: Tim Johnson
The warning came from the Vaping Conversations series, hosted by VPASA, by Arshad Abba, a partner at management consultancy Quantum Logik Consulting and the lead on the 2018 Canback study on vaping and its economic impact in South Africa, according to an article in The Sunday World.
Abba was among the high-profile panel of speakers sharing the platform with moderator Dr Delon Human, co-chair of the Africa Harm Reduction Alliance (AHRA), and fellow speaker Professor Donato Raponi, a freelance tax consultant and an honorary professor of European Tax Law at the Ecole Supérieure des Sciences Fiscales in Brussels, Belgium. Raponi has been ranked several times among the 10 most influential people in the world in tax matters by the International Tax Review.
The final diginar for the year comes as the controversy around the impending Control of Tobacco Products and Electronic Nicotine Delivery Systems (COTPENDS) Bill gathers force. Audience members included government stakeholders, parliamentary representatives and harm reduction advocates, among others.
Raponi, who has worked as an academic and in both the private and public sectors, presented a compelling narrative for the development of a tax framework for vapor products.
“A tax system should be stable but flexible enough to take into account future challenges,” he said, adding that government bodies needed a clear vision on questions such as what to tax, why they impose a tax, what they want to tax, how they tax, how they collect tax, and how the tax will be controlled.
“These points are especially important as the share of the market by vapor products is limited, meaning revenue from taxation would therefore also be limited,” he added.
November 30, 2020
New Report Highlights Opportunities for Tax Stamps

Photo: Reconnaisance International
New investment in track-and-trace systems, rising excise taxes and wider commercial applications will drive tax stamp growth in the next five years, according to a new report published by Reconnaissance International.
The third edition of the “Tax Stamps & Traceability: A Market Analysis and Technical Update” identifies cannabis and vapor products as new markets for tax stamps to tap into at a time when the continued trade in illicit tobacco and alcohol sees revenue agencies using the devices as effective weapons in the fight against counterfeiters and criminals.
The report also points to the fact that by 2023, tobacco products in at least 60 countries will need to have track-and-trace systems in place to comply with the World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) Protocol to Eliminate Illicit Trade in Tobacco Products. This could open up additional tax stamp markets and more commercial opportunity for an established product.
Nicola Sudan
“This is an important strategic report, offering insight, analysis and to those with a vested interest in tax stamps, the knowledge needed to progress with their own plans in this burgeoning sector,” said the report’s editor Nicola Sudan of Reconnaissance International. “Tax stamps offer a cost-effective way to secure excise revenue, while the authentication benefits provided cannot be overstated. It is why they will continue to be highly regarded and used by revenue authorities around the world well into the future.
“So whether your country, state or jurisdiction currently uses a tax stamp scheme, or is considering investing in such a scheme, it would be beneficial to find out what a modern program can deliver and why now is the right time to introduce them or expand your current scheme. This report will aid in making the right decisions and choices.”
November 30, 2020
Vuse Partners With Rudimental to Promote Brand
Vuse has partnered with award-winning band Rudimental on a series of initiatives that promise to electrify creativity and inspire audiences worldwide. The collaboration between the band and the British American Tobacco -owned (BAT) e-cigarette brand will feature a variety of activities which include exclusive competitions, performances and an exciting content series.
Credit: Rudimental
“This special activation with Rudimental and McLaren is a big move for Vuse as we look to Charge Beyond and connect with our adult consumers on a wider scale, bringing together our partnerships across music and sport,” says Elly Criticou, Vapour Category director, BAT. “With lockdowns still happening across the world, and the creative sector struggling because of it, we’re glad that we can provide fans with a creative outlet where they can find inspiration at home, along with enjoying an exclusive performance by Rudimental.”
The first Rudimental activation sees the band go on the hunt for inspiration with McLaren Racing, of which Vuse is a global partner. Bringing together two inspirational collaborators from the worlds of music and motorsport, Vuse wants to connect and inspire others through celebrating its brand passions, according to a press release.
The Rudimental x McLaren Racing activation will be brought to life via a four-part content series which will see Rudimental visit the home of McLaren in the UK and meet key team members to discover inspiration for an exclusive performance to mark the end of this year’s Formula 1 season.
“We’re all about inspiring and bringing people together from all walks of life through the music we create. We had a lot of fun and learnt a lot at McLaren and it’s crazy to think how much synergy there is with the world of music and sport when it comes to inspiration,” says Locksmith, a DJ with Rudimental.
The exclusive content is part of Vuse’s ‘Routes of Inspiration’, a virtual series that explores how inspiration comes to professionals within the creative world. Following the cancellation of live entertainment events around the world, the series has been created to give artists and fans a new way to connect, the release states. In 2021, Vuse’s partnership with Rudimental will continue to develop through activations and performances that drive further inspiration and global brand awareness.
November 27, 2020
New U.K. Market Placement Rules Begin on Jan. 1
Illustration Skypixel – Dreamstime.com
Vapor companies that want to place an e-cigarette on the U.K. market will have to send their notifications through different routes after Jan. 1 due to Brexit.
The Medicines and Healthcare products Regulatory Agency (MHRA) will remain the competent authority for the notification scheme for e-cigarettes and refill containers in Great Britain and Northern Ireland.
From January 2021 producers of nicotine-containing electronic cigarettes and refill containers will be required to:
Submit notifications for Great Britain using the MHRA Submission Portal
Submit notifications for Northern Ireland using the European Common Entry Gate (EUCEG)
Retailers do not need to submit information for any products they sell unless they also qualify as a producer.
The U.K. government has published several guidance documents and videos explaining the process on its website.
Click here to read Tobacco Reporter‘s in-depth analysis of Brexit’s impact on the tobacco and vapor industries.
November 26, 2020
Loveland, Colorado Flavored Vape Ban Passes First Vote
After a 6-3 vote from its city council on Tuesday, Loveland, Colorado is on track to ban flavored vaping and other more traditional tobacco products, including e-juices, dip and smoking tobacco. Flavored marijuana vapes will not be subject to the ordinance, if passed.
Credit: Elsa Donald
While councilors Steve Olson, Dave Clark and Don Overcash voted “no,” calling the ban arbitrary and unfair to law-abiding businesses, supporters said restricting flavors was necessary to keep more children from getting addicted to nicotine, according to a story in the Loveland Herald-Reporter.
“I wrestled with this so much because I care about the businesses that will be affected, but I feel like the tobacco industry played a mean game here, and they’re hurting our kids,” councilor Kathi Wright said.
Tuesday night’s vote ended more than a year of debate on how best to curb a local spike in youth vaping, which was reflected in the number of citations issued for underage tobacco possession until the Thompson School District switched to remote learning earlier this year.
Last week, the council heard multiple hours of public comment on the issue. Speakers agreed on the need for more regulation to keep tobacco products out of the hands of children though some disagreed on implementation.
Council members were presented on Tuesday with five versions of an ordinance introducing various restrictions on the sale of tobacco and vaping products. Alternatives would have excluded menthol-flavored products from the flavor ban, introduced other age restrictions while leaving flavors alone or limited the sale of tobacco or vaping products to age-restricted stores.
Overcash said he would not support the flavor ban, and suggested supporters were only voting in favor only because they personally disliked vaping and smoking.
“What other products are we going to decide for whatever reasons are going to be allowed in our community or not?,” he said. “I have a problem when we mandate things because we don’t like something.”
Molloy and Overcash sparred briefly when Molloy started laughing during Overcash’s statements.
“No, councilor Molloy, I’m serious,” Overcash said. “You let me know what product you’d like to take off the market next, and I’ll champion that for you.”
“Medical marijuana,” Molloy replied.
Other parts of the ordinance introducing the ban would:

Reaffirm that the legal minimum age to purchase tobacco products is 21.

Introduce a licensing structure.

Set licensees back from schools and other “youth-populated areas.”

Prohibit self-service.
The ban will return for a second vote on Dec. 1. If it is approved, the ordinance will go into effect on Jan. 1, 2021.
November 25, 2020
Consumer Group Suggests Ways to Lower Youth Vaping
The Consumer Choice Center has released a new report that considers existing age restrictions on the sale of vaping products and then suggests several policies to reverse low enforcement rates of current rules.
Fred Roeder – Credit: Consumer Choice Center
To reduce the rate of vaping by youth, the Consumer Choice Center report recommends four actions:

Enforce strict age restrictions on vaping devices and liquids at the point of sale.

Use modern age-verification technology for online sales.

Learn from other industries such as alcohol and fireworks on how to improve compliance rates.

Retail and industry should be encouraged to be more proactive with the enforcement of rules.

Don’t punish legal adult vapers for the lack of enforcement of age restrictions.
Fred Roeder, health economist and author of the report, stated in an email that most countries have already drawn a line of when it is legal to vape (enacted age-to-purchase laws).
“We don’t face a lack of legislation but a lack of compliance with existing rules and regulations. We looked at similarly regulated industries such as alcohol and gambling and found that these tend to have smarter enforcement mechanisms,” he wrote “There are many innovative tools out there to ensure only adult customers can buy vaping products. Digital ID checks and industry initiatives to ID customers that look young are better ways to solve the problem than additional laws such as flavor bans.”
November 25, 2020
Malawi Gears up for Cannabis Production and Processing

Malawians are hoping that hemp earnings will help offset declining tobacco revenues.
(Photo: Taco Tuinstra)
Malawi is ready to start commercial production and processing of cannabis for medicinal and industrial use, reports Reuters, citing the country’s newly created Cannabis Regulatory Authority.
In February, Malawi’s parliament passed a bill that makes it legal to cultivate and process cannabis for medicines and hemp fiber used in industry but stops short of decriminalizing recreational use.
The board chair of Malawi’s regulator, Boniface Kadzamira, said his board had received more than 100 applications for licensing which were under review.
The license fees will range from $100 to $10,000 a year for the cultivation, selling, storage, distribution of industrial and medicinal hemp.
Kadzamira believes hemp has the potential to surpass earnings from tobacco, currently the country’s main export crop.
Malawi’s earnings from tobacco have fallen dramatically over the years in part due to declining demand and poor weather.
During the 2020 season, Malawi’s tobacco output fell by 31.3 percent, resulting in a 26.4 percent decline in the country’s overall tobacco revenues.
Due to the disappointing earnings, the country’s tobacco auctioneer, Auction Holdings, has failed to pay salaries for the last two months.
November 25, 2020
Flavor Ban Opponents Submit Signatures for California Ballot

Photo: pjedrzejczyk from Pixabay
The California Coalition for Fairness has turned in more than 1 million signatures seeking to qualify a referendum for the November 2022 ballot aimed at overturning a law banning the retail sale of flavored tobacco products in California, reports The Los Angeles Times.
If the Secretary of State’s office determines there is a sufficient number of signatures to qualify the referendum, the new law, which was scheduled to take effect Jan. 1, would be suspended until the voters act on the ballot measure in November 2022.
Opponents needed to collect the signatures of 623,312 registered voters to quality the referendum.
The coalition has received more than $21 million from Philip Morris USA, U.S. Smokeless Tobacco Co., and R.J. Reynolds Tobacco Co., among others.
Health advocates criticized the initiative.
“We know Big Tobacco has hidden behind smoke and lies for years to hook generations of young people on deadly tobacco products, and this referendum is just one more tactic to continue the status quo,” said Lindsey Freitas, advocacy director for Campaign for Tobacco-Free Kids, in a statement. “If this referendum qualifies for the ballot, we’re confident that California voters will reject Big Tobacco’s desperate attempt to keep hooking our kids for a profit. But the delay will be costly and deadly.”
Governor Gavin Newsom, who signed the new law in August, denounced the referendum effort when it launched.
“This is Big Tobacco’s latest attempt to profit at the expense of our kids’ health,” Newsom said at the time. “California will continue to fight back and protect children from Big Tobacco.”
The law that Newsom signed would ban the retail sale of flavored tobacco products including menthol and fruit flavors, as well as those used in electronic cigarettes.
In addition to supporting the referendum, the tobacco industry has filed a federal lawsuit against the state, seeking an injunction to block the new law, arguing it is “an overbroad reaction to legitimate public-health concerns about youth use of tobacco products.”
A court hearing on the lawsuit is scheduled for Dec. 10.
November 25, 2020
Missoula Bans Flavored Vapes, Flavored Cigarettes OK
The vote was 5 to 4. The city council for the Montana city of Missoula voted Monday to ban the sale of flavored e-cigarettes and vapes within five miles of city limits. The ban does not include flavors for other tobacco products, such as cigarettes or cigars.
Credit: Timothy S. Donahue
Not only does this new ordinance ban the sale of flavored products it also restricts the display of all tobacco. Retailers in Missoula will have to move any tobacco product behind their counter, according to an article on khq.com.
The ordinance will go into effect on Jan 25, 2021, allowing stores to sell off the remainder of their flavored products and to move all tobacco products behind their counter. These new changes will be enforced through both the Missoula City County Health Department and the police.
The intent of this ban is to make it more difficult for minors to get a hold of tobacco products, according to council members. Multiple city council members also said the ban will counteract the predatory marketing of big tobacco companies, at least on the local level.
The ordinance is made up of three main components. First, it requires retailers to keep all tobacco products behind the counter. Next, it prohibits the sale of flavored tobacco when used with an e-cigarette. Finally, it makes it unlawful to sell or give tobacco to any minor.
The councilmembers who voted against the ban all gave different reasons for their opposition to the ordinance. Those included not wanting local business to lose revenue and jobs, not wanting to get involved with lawsuits with tobacco retailers and freedom of choice.
“I am very pro-choice about what happens to my body and what goes into it and I don’t feel that I am in a position to dictate how one should cope in this world. So I will not be supporting this ordinance,” Councilmember Heather Harp said.
November 24, 2020
Looking Back: SHEER Report ‘Fundamentally Flawed’
A scientific report on e-cigarettes prepared for the European is fundamentally flawed, according to the Independent European Vape Alliance (IEVA).
As part of the European Commission’s forthcoming review of the Tobacco Products Directive, the Scientific Committee on Health, Environmental and Emerging Risks (SCHEER) Committee was tasked with producing a scientific review of the health effects of e-cigarettes. On Sept. 23, SHEER adopted its preliminary opinion. The public consultation on the preliminary opinion closed on Oct. 26.
“While we welcome the initiative from the European Commission in taking a view on the science of electronic cigarettes, the draft report it has produced is fundamentally flawed,” IEVA wrote. “What is most striking about the draft scientific review is its failure to compare the risks of electronic cigarette use with the risks of smoking.”
In its response to the preliminary opinion, IEVA cited several areas of concern:
The Committee has concluded that there is insufficient evidence that e-cigarettes are not a useful tool for smokers seeking alternatives, despite quoting two randomized control trials stating precisely the opposite.
In its risk assessment, the Committee has not taken a risk-based approach at all, but rather a hazard-based approach. It states the potential risks of using e-cigarettes without even attempting to compare these with the risks from cigarette smoking, which are exponentially higher.
The Committee has concluded that there is strong evidence that e-cigarettes act as a “gateway” to smoking. However, it has done so based almost exclusively on data from the United States, where an entirely different regulatory regime exists. The Committee also fails to acknowledge that smoking among young people has declined significantly: if vaping leads to smoking, then why are there not more smokers observed during the period where the e-cigarette market grew rapidly?
According to IEVA, the poorly founded conclusions undermine the utility of the report as a document upon which EU decisionmakers can make policy decisions in the best interests of Europeans.
Earlier this week, British American Tobacco voiced similar concerns about the SHEER report.
November 24, 2020