Tag: china

white cloud cigarettes

pattyn banner

itm banner

One in three cigarettes in Macau is illegal, study finds

| October 21, 2015

More than one-third of all cigarettes consumed is either illegally produced in Macau or smuggled into the city, giving Macau has the second-­highest incident rate of illegal cigarette consumption in Asia, according to a regional study.

A report titled “Asia-16: Illicit Tobacco Indicator 2014” was commissioned to better understand the use of cigarettes in Macau and how many of these are being sourced illegally, according to a story in the Macau Daily Times. In 2014 approximately 34.5 percent of all cigarettes consumed within the territory were illegal, and more than two-thirds of cigarettes coming into the city from overseas were illegal, the study found.

“It hurts the government financially, effectively wiping out the tax revenues that could have covered this year’s cash payout to more than 20,000 citizens,” Adrian Cooper, CEO of Oxford Economics, reported on the economic effects of the illegal cigarette trade at a press conference. According to Cooper, the estimated revenue loss to the government is MOP185 million.

“Another way to look at this is that it’s equal to 0.7 percent of the total non-gaming revenues,” said Cooper.

The most popular cigarette brand is sold at MOP30 locally, compared with only MOP9 for the most popular brand in China, making cigarettes more than three times as expensive in Macau as they are in the mainland of China.

“The difference in price creates an incentive for cross-border trade in cigarettes,” said Cooper, “which is facilitated by [significant] cross-border traffic in Macau.” Cooper stated that there is also a “lack of rigorous custom enforcement at the border.”

According the report, 0.4 billion of the 1.1 billion cigarettes consumed in the city last year were illegal. Approximately 141 million cigarettes originated in mainland China, and 117 million were from Hong Kong; however, only 10 million were counterfeits produced within Macau.

To combat the issue of illicit cigarettes, Cooper stated that a three-pronged approach would be required, according to the Times.

“The government should consider introducing a balanced excise policy with regular but moderate tax increases to keep excise tax at pace with inflation,” he said. “It is also essential to step up law enforcement efforts and, at the same time, raise public awareness on the serious consequences of selling and buying illegal cigarettes.”

Beijing smoking ban will boost vapor, says e-cig inventor

| June 10, 2015

Hon Lik, the Chinese inventor of the modern e-cigarette, has predicted that Beijing’s new public-places smoking ban will prompt many consumers to switch from smoking to vaping. Although China’s e-cigarette market is still relatively small compared to those in other countries and smoking rates in China remain high, the ban—which took effect June 1—could be the push smokers need to quit combustible cigarettes.

Anyone who violates the ban on smoking in restaurants, hotels, hospitals, schools and certain outdoor public places will be fined CNY200 ($32.35). Other cities in China are expected to follow suit by implementing similar smoking bans as governments seek to improve public health.

China plans to grow tobacco in Crimea

| June 5, 2015

The Crimean government has announced that a visiting delegation of Chinese businessmen intend to invest in tobacco cultivation within the territory, which was annexed by Russia in March 2014. Chinese equipment and technology would be supplied to the semiautonomous territory, which has been fighting to secure foreign investment amid trade sanctions imposed by Ukraine, the United States and the European Union following Russia’s annexation of the region.

“Tobacco is in huge demand in China, and Crimea has a suitable climate and soil for tobacco cultivation,” the delegation’s leader, Chen Zhijun, was quoted by news agency TASS as saying at a meeting with Crimean leader Sergei Aksyonov.

Aksyonov and Chen on June 4 signed a protocol on investment cooperation, according to a press release posted on the Crimean government’s website.

Strict laws to limit tobacco ads in China

| April 23, 2015

Lawmakers in China may introduce tough new restrictions on tobacco advertisements, according to a story in the China Daily. A draft revision to the country’s 20-year-old Advertisements Law will be voted upon tomorrow; the revision was discussed Tuesday at the bimonthly session of the Standing Committee of the National People’s Congress and is likely to be ratified.

The draft indicates that no tobacco advertisements should be displayed in public places or published in mass media outlets. While many lawmakers advocate a complete ban on tobacco advertisements in China and maintain that public health should be the country’s top priority, others recognize that the production of tobacco provides a significant source of income for farmers who reside in areas that are not suitable for other types of agriculture.

China signed the World Health Organization’s Framework Convention on Tobacco Control in 2003.

China produces more cigarettes

| July 29, 2014

China’s tobacco companies produced more cigarettes even as the number of tobacco farms decreased in the first half of 2014, reports Xinhua News Agency quoting figures from the State Tobacco Monopoly Administration (STMA).

In the January-June period, Chinese cigarette manufacturers produced 1.3 million sticks, 0.2 percent more than in the first half of 2013. Meanwhile, the area of farming land dedicated to tobacco fell by 170,000 hectares to 1.23 million hectares, according to the STMA.

The tobacco industry generated RMB579.54 billion ($94 billion) in revenue for the Chinese government over the first half of 2014. Tobacco taxes constituted about 7.8 percent of China’s fiscal revenues during that period, according to the Finance Ministry and the STMA.

There are more than 300 million smokers in China



China’s cigarette output soars despite tobacco control

| December 5, 2013

China’s cigarette production has soared over the past decade, despite efforts to curtail tobacco use, according to a new study, reported by China Daily.

Annual cigarette production in the world’s most populous country has increased 50 percent over the past 10 years, according to the report Tobacco Control in China from a Civil Society Perspective 2013. In the 12 months to October, Chinese tobacco companies produced 2.175 trillion cigarettes.

The latest finding echoed a similar recent assessment by the World Health Organization (WHO), which rates China as a poor performer among countries that have joined the Framework Convention on Tobacco Control.

The WHO assessment awarded China two of a possible 16 points on public smoking control, and zero points on tobacco advertising control. Moreover, the country’s tobacco tax rate, at 43.4 percent, is still below the world average, the assessment noted.

The Chinese government signed the FCTC in 2003.