Budget 2023 Measure Aims to Discourage Tobacco Consumption and Promote Public Health

In a move to discourage tobacco use, Finance Minister Lawrence Wong announced during his Budget 2023 speech that the Singapore government will increase the excise duty on all tobacco products by 15% starting from Tuesday, February 14. The excise duty, which is levied on goods manufactured in or imported into Singapore, was last raised in 2018 when it went up by 10% on cigarettes and other tobacco products.

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The German Customs has notified the local electronic cigarette association and economic operators that tobacco alternatives products, also known as e-cigarettes, which have been listed before July 1, 2022, should be re-taxed, and that all e-cigarettes held within the taxation area with invalid tax numbers, will be taxed according to the e-cigarette additional tax rate from February 13, 2023 onwards. Product owners must act quickly to comply, return used goods to a tax warehouse, have tax stamps affixed (by manufacturers, importers, or purchasers for commercial purposes), and fulfill retrospective taxation obligations. E-cigarette traders are advised to improve their retail packaging and use approved tax stamps for subsequent taxation while the tax warehouse owners must already have tax numbers to undertake all tax after-tax obligations.

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The Dutch government has recently announced a ban on flavoured e-cigarettes, making it one of several EU agencies to take this step. In this article, we will explore the reasoning behind this decision, its potential impact on the vaping industry, and what it means for manufacturers and consumers.

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UK trade standard officials have seized illegal e-cigarettes, including those sold to children, and found that they lack mandatory health warnings, and contain nicotine far above the official limit. In response, 1.4 tons of these illegal products were sent for destruction. The Trade Standards Association is concerned about the increasing number of non-compliant e-cigarettes being sold and the issue of selling them to children, as this has attracted widespread public attention. While e-cigarettes could be useful to smokers looking to quit, consumers are reminded to be cautious and choose reputable e-cigarette stores.

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Shenzhen Ecigator Vape Factory

eCigator Technology was licensed by China’s State Tobacco Monopoly Administration for their vaping products export business. The licensed business including: manufacturing and exporting ecigator disposable vape pen 600 puffs, 800 puffs, 1500 puffs,3000 puffs, 5000 puffs, 6000 puffs, ecigator disposable vape box, ecigator interchangeable vape pod kit, and providing OEM and ODM service for vapor brands against their local vape and tobacco law.

China tightens e-cigarette and vaping industry regulations, requires firms to obtain licenses to operate vapor business.  On Nov. 26, 2021, China’s State Council authorized China’s State Tobacco Monopoly Administration to regulate the e-cigarette and vaping industry, and amended the country’s tobacco monopoly law to include Vaping and e-cigarette industry. Thus, all vaping related supplies including vape devices, e-liquid, cbd vape device, mods, vape kits, dry herb vaporizers, and the like are all under regulations by STMA, and all those companies requires to obtain license.

Ecigator Technology was obtained the STMA license for its e-cigarette and vaping production at the end of June, 2022, the license which permits eCigator technology to producing 12.85 million interchangeable vape cartridges, 6.5 million interchangeable pod vape kits, 1.05 million open pod system vape devices and 31.5 million disposable vape pens per year.

Ecigator Vape factory tobacco production licence

Please contact us for the full  license files.

E-cigarette manufacturer Juul has announced its plan to layoff around 400 employees, reduce its budget by 30% to 40%, and receive cash injections from early investors to stop bankruptcy preparation. The investment and restructure plan are designed to move the company forward, strengthen its financial base, and continue with the product development and scientific research while adhering to discussions with the US Food and Drug Administration. Recently, Juul has faced a plummet in valuation, dropping from $38 billion to $450 million as a result of disputes with the government regarding the sales of e-cigarettes. This decline in valuation was further exacerbated when an outbreak of e-cigarette-related lung disease occurred in the United States.

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Juul, a leading US electronic cigarette manufacturer, could file for bankruptcy as it struggles with the effects of strict regulation. While the company has been expanding its overseas markets in recent years, the majority of its revenue still comes from the US market. However, since the FDA ordered the removal of all Juul products from the US market in June, the company has struggled financially. Sources claim that if the ban cannot be lifted entirely, Juul is expected to discuss financing issues with its lenders this week and enter a potential process of bankruptcy protection.

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A study conducted by the School of Pharmacy at Sun Yat-Sen University in China has found that, under the same nicotine dosage, e-cigarette aerosol has less harmful effects on the respiratory system than traditional cigarette smoke. The research team compared the impact of e-cigarettes and traditional cigarettes on mouse lung function, inflammatory factors, and protein expression under the same nicotine content, analyzing multiple indicators. The study found that although both e-cigarettes and traditional cigarettes are harmful to the respiratory system, the harm of e-cigarette aerosol is smaller. The study contributes to the ongoing debate about the potential impact of e-cigarettes, which the medical community generally regards as a reduced-harm substitute for traditional cigarettes.

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Police Aim to Educate and Reverse Vaping Trend Despite Lack of Legal Framework

Cambodian authorities have intensified their efforts to curb the use of e-cigarettes throughout the country, with a particular focus on students and youth. Although there are currently no laws that allow for legal action against users or sellers, authorities hope to reverse the vaping trend by raising awareness about the health risks associated with e-cigarettes and educating users about the dangers of their habits.

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Draft Financial Management Law Proposes Higher Taxes on Tobacco and Beer, Receives Support from Health Advocates

According to the draft of Cambodia’s Financial Management Law for 2023, the government plans to increase tax rates on tobacco and beer starting in 2023 to boost national revenue. The proposed legislation also outlines a series of tax incentive policies, including measures to support the recovery of sectors affected by the pandemic, such as the tourism industry.

Tax Authority to Strengthen Collection Efforts in High-Potential Sectors

The Cambodian General Department of Taxation intends to strengthen tax collection and management in sectors with high revenue potential, such as construction, telecommunications, mining, beer, beverages, and tobacco. The tax authority also aims to improve the efficiency of value-added tax (VAT) collection on goods and digital services provided by e-commerce businesses and update information on tax-delinquent companies to enhance tax collection supervision mechanisms.

Public Health Advocates Praise Tobacco Tax Increase Proposal

Dr. Mom Kong, executive director of the Cambodia Movement for Health (CMH), expressed support for the proposed increase in tobacco product tax rates. He stated that raising tobacco taxes is a win-win policy that not only increases national revenue but also reduces public health service costs. Moreover, the number of people in Cambodia falling ill and dying due to tobacco products is expected to decline as a result of the tax hike.

A United Nations study suggests that if Cambodia raises tobacco product tax rates to 75%, the country could generate an additional $235 million in tax revenue over the next five years and $933 million over the next 15 years.

Overwhelming Public Support for Higher Tobacco Taxes

Raising tobacco product tax rates aligns with the will of the Cambodian people. Research conducted by the National University of Management in Cambodia reveals that 94% of Cambodian citizens support the government’s effort to increase tobacco product tax rates.

Approximately 15,000 people die each year in Cambodia from tobacco-related diseases, and Cambodians spend around $649 million annually on tobacco purchases, accounting for 3% of the country’s GDP.

Cambodia’s Tobacco Tax Rates Among Lowest in ASEAN

Cambodia currently has one of the lowest tobacco product tax rates in the ASEAN region, ranging from 25% to 31%. In comparison, Myanmar’s tax rates are as high as 50% to 60%, Singapore’s rate is 67.5%, Vietnam’s is 35%, and Thailand’s reaches 70%.

As Cambodia moves forward with its plan to increase tobacco tax rates in 2023, the government aims to strike a balance between generating additional revenue and improving public health outcomes. The proposed legislation has garnered support from both health advocates and the general public, who recognize the potential benefits of higher tobacco taxes for the nation’s well-being and economic development.

Cambodia Achieves Significant Reduction in Smoking Rates

A new study has revealed that Cambodia has made substantial progress in reducing tobacco use among its population. The National Adults Tobacco Survey 2021 found that the overall cigarette smoking prevalence decreased from 16.6% in 2014 to 13.04% in 2021. This decline was particularly pronounced among men, with a 6.93% decrease in cigarette smoking prevalence from 32.3% in 2014 to 25.37% in 2021. Women also experienced a reduction in cigarette smoking prevalence, from 2.4% in 2014 to 2.05% in 2021.

Dr Tara Singh Bam, Asia Pacific Director of International Union Against Tuberculosis and Lung Disease (The Union), attributed these positive results to the success of comprehensive tobacco control legislation and sustained whole-of-government efforts. The Union remains committed to partnering with the Ministry of Health and other national and international partners to promote tobacco control and ultimately end tobacco use.

Dr Chhordaphea Chea, Director of the National Center for Health Promotion at the Ministry of Health in Cambodia, emphasized that these survey results demonstrate that Cambodia is on the right track in tobacco control. He called for innovative efforts to further reduce smoking prevalence significantly.

Cambodian Public Supports Stronger Tobacco Control Measures

The survey also revealed that attitudes towards tobacco control are shifting among the Cambodian population. An overwhelming majority of respondents, 95%, supported an increase in cigarette tax, while 95.75% supported an increase in the price of tobacco products.

Raising taxes on tobacco products is a crucial measure because it leads to an increase in the price of tobacco products, making them less affordable. When tobacco becomes less affordable, people use it less, and initiation of tobacco use among youth also decreases. Youth and low-income groups are more responsive to increases in tobacco prices and disproportionately benefit from the health and economic advantages of quitting and not starting. Saving lives with tobacco taxes reduces the enormous healthcare burden and economic losses resulting from tobacco-related diseases. Tobacco taxation is also relatively inexpensive to implement and generates significant revenues over the short and medium term.

Smokefree Laws Reduce Exposure to Deadly Tobacco Smoke

The survey found that the number of people exposed to tobacco smoke has decreased dramatically between 2014 and 2021. Exposure to tobacco smoke at home declined from 66% in 2014 to 27% by 2021, while exposure at workplaces reduced by half, from 48% in 2014 to 24% by 2021.

However, despite smoke-free laws, exposure to tobacco smoke in public transport rose from 33% in 2014 to 62% by 2021, which is a concerning trend.

Cambodia ratified the global tobacco treaty (WHO Framework Convention on Tobacco Control) on 13 February 2006. Cambodian law prohibits smoking in all indoor workplaces and indoor public places. To effectively end tobacco use, smoking bans must be extended to outdoor workplaces and outdoor public places as well.

Smokefree laws and policies protect non-smokers from the life-threatening health hazards caused by secondhand smoke and thirdhand smoke. Evidence shows that smoke-free laws also encourage tobacco users to quit and prevent initiation of tobacco use.