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Tobacco leaf is generally sold in the auction markets, located in Lilongwe and Limbe, and run by Auction Holding Limited, in which the government holds about 51 percent of shares. A commission of 3.95 percent of sale value is imposed on sales. All fees and payments, including input credit, Tobacco Association fee, tobacco research contributions and other payments, are directly deducted at hammer fall.

Although auction buyers (tobacco exporters) pay in US dollars for tobacco at the auction, most sellers receive payment in local currency calculated at the exchange rate at the time of sale. Price determination at auction is expected to be the result of interaction between buyers and sellers. However, given a small number of buyers and urgent needs for cash by small-scale growers, buyers have greater market power than sellers. On some occasions, it has been a buyers’ market. Although TAMA was in the market to represent small-scale growers, it had limited influence on the auction price. Seven major tobacco-exporting companies are active in Malawi. Most of them are agents or divisions of multinational companies based in the United States of America or in Europe. The three largest of the exporting companies accounted for nearly 90 percent of total tobacco exports. These exporting companies buy tobacco leaf from the auction markets and export it after processing.

Many of them have established processing facilities and have technical and market expertise for tobacco exporting. Under the government regulations, any company is eligible to buy tobacco leaf from the auction floor if they have sufficient bank credit and qualified personnel and have paid a licence fee. However, no new exporters have emerged in recent decades, possibly because the substantial investment required to establish processing factories acts as a barrier to new entrants. In addition to buying for orders, exporters also purchase leaf and hold it for speculation. Speculation buying ensures that all tobacco leaf is sold.

After the structural reform initiated in 1994/95, the government has progressively withdrawn its intervention in tobacco trading. In an attempt to raise additional revenue, the government imposed a temporary levy of 10 percent on tobacco exports in 1995, but as it reduced the competitiveness of exports, it was reduced to 8 percent in 1996, 4 percent in 1997 and abolished in 1998. Since 1998, no export levy or tax has been imposed on tobacco. The major revenue the government has collected from tobacco exports has been from a tax on tobacco exporters’ profit. In the past few years, the government revenue from the tax accounted for more than 20 percent of total national tax revenue.

CIAR is not the lone example of Defendants’ organizations poised to circumvent the MSA’s prohibitions against joint activities or participation in an enterprise. The district court found, with the exception of CTR and TI, “all of the other organizations either still exist or can be readily re-activated.”

For example, even at the time of trial Defendants continued to participate in the Center for Cooperation in Scientific Research Relative to Tobacco a nonprofit making association with objectives to enhance the scientific cooperation for research on tobacco” perceived as “unique and very valuable” because it enjoys the perception of “being objective, technical and independent.”

Defendants presume the MSA’s prohibition against joint activity is effective. The record, however, demonstrates the tobacco companies retain both the ability and the desire to continue joint activities. Accordingly, the district court did not commit clear error when it determined the MSA could not effectively prevent Defendants’ participation in an enterprise. Defendants next assert the MSA’s “scores of injunctions and related prohibitions” prevent “repetition of the core wrongdoing.”

The district court determined the MSA does not prevent Defendants’ commission of future racketeering acts because:

(1) Defendants have not fully complied with the MSA,

(2) the States could not be relied upon “to vigorously enforce the MSA,” see Br. For Amici Curiae States 7–11,

(3) some provisions of the MSA have and will expire, and (4) BATCo and Altria are not subject to the agreement.

Pursuant to section 1964, the district court imposed injunctive remedies against the other seven manufacturer Defendants. Specifically, the court ordered Defendants

(1) to refrain from any acts of racketeering relating to the manufacturing, marketing, promotion, health consequences, or sale of cigarettes in the United States;

(2) not to participate in the management or control of CTR, TI, or CIAR, and not to reconstitute the form or function of those entities;

(3) to refrain from making any material false, misleading, or deceptive representation concerning cigarettes that is disseminated to the United States public;

(4) to cease using any express or implied health message or health descriptor for any cigarette brand, such as light or low tar;

(5) to make corrective disclosures about addiction, the adverse health effects of smoking and secondhand smoke, their manipulation of cigarette design and composition, and light and low tar cigarettes;

(6) to create document depositories providing the government and the public access to all industry documents disclosed in litigation; and

(7) to provide their disaggregated marketing data to the government according to the schedule on which they provide it to the Federal Trade Commission. The court also limited the sale and transfer of Defendants’ brands, product formulas, and businesses to entities that either are subject to the injunctive order or will sell the brand, use the formula, or conduct the business exclusively outside the United States.

Most of the world’s more than one billion smokers – about a quarter of all adults – are addicted. Many want to quit, but few get the help they need. Services to treat tobacco dependence are fully available in only nine countries, with 5% of the world’s population.

Countries must establish programmes providing low-cost, effective interventions for tobacco users who want to escape their addiction. Warn about the dangers of tobacco. Despite conclusive evidence, relatively few tobacco users understand the full extent of their health risk. Comprehensive warnings about the dangers of tobacco can change tobacco’s image, especially among adolescents and young adults. Graphic warnings on tobacco packaging deter tobacco use, yet only 15 countries, representing 6% of the world’s population, mandate pictorial warnings (covering at least 30% of the principal surface area) and just five countries, with a little over 4% of the world’s people, meet the highest standards for pack warnings.

More than 40% of the world’s population lives in countries that do not prevent use of misleading and deceptive terms such as “light” and “low-tar”, even though conclusive scientific evidence – which has been known to the tobacco industry for several decades – shows that such products do not reduce health risks. This first report has not assessed public education campaigns, which, if hard-hitting, sophisticated and sustained, are highly effective. Countries such as Australia show what can be done with effective public education campaigns.

Without any reservations, the author can state that no company makes more use of secondary imagery than Philip Morris Inc. A very large proportion of their cigarette ads incorporate images that have nothing to do with their products. Some embedded images are fairly blatant, some are more moderate, like those above. On the left is an example of an extremely subtle Marlboro ad - but subtle only in terms of visual imagery, not meaning.

Overtly, the ad epitomizes and glorifies the Marlboro cowboy, the freedom of the range, independence, self control, etc. Covertly it aims to instil or trigger anxiety, if not fear. The ad itself, like a large proportion of Marlboro ads, is dark and sombre. In itself this coloring might convey negative messages, and trigger negative moods and smoking in some viewers. Fitting in with the sombre mood of the ad is a figure underneath the horses hooves, a figure that can only be described as the face of a figure from another world. Perhaps Hades, perhaps just from the world of horror movies, perhaps straight from the grave. This image is no accident of printing. Nor is it likely to be an aberration or joke on the part of an artist such as the upraised digit finger in the Big isn’t it ad. Such figures appear regularly in Marlboro ads.

The only reasonable conclusion one can therefore draw is that the ad agency for Philip Morris Inc. considers that such figures are sufficient to trigger a mood related response in some viewers. And that will lead to, or maintain, smoking behaviour. Such a notion could, of course, be empirically tested by any undergraduate psychology student if they wished to do so once they learned to identify these marginally perceptible images. The page on Experiments provides some relevant information. The assumption on the part of Philip Morris’ ad agency must be that smokers and potential smokers can perceive these figures without any conscious attention being paid to them. The figures are semi-subliminal and presented on the borderline of perceptual ability. The figure referred to is illustrated somewhat more clearly to the left but the author expects that the vast majority of viewers will find it difficult to detect.

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1953 Ed Sullivan Chesterfield Cigarette Ad - Chesterfield is best for YOU! “Chesterfield is the only cigarette I can speak for, because it’s the only one I smoke. I’ve smoke Chesterfield for 22 years and I recommend you try’em – they Satisfy – and how!” Ed Sullivan –And First to Present this Scientific Evidence on Effects of Smoking A MEDICAL SPECIALIST is making regular monthly examinations of a group of people from various walks of life. 45 percent of this group has smoked Chesterfield for an average of over ten years. After eight months, the medical specialist reports that he observed… No adverse effects on the nose, throat and sinuses of the group from smoking Chesterfield. CHESTERFIELD – FIRST and only premium quality cigarette available in both regular and king-size.     

1953 Ed Sullivan Chesterfield Cigarette Ad
Chesterfield is best for YOU! “Chesterfield is the only cigarette I can speak for, because it’s the only one I smoke. I’ve smoke Chesterfield for 22 years and I recommend you try’em – they Satisfy – and how!” Ed Sullivan –And First to Present this Scientific Evidence on Effects of Smoking A MEDICAL SPECIALIST is making regular monthly examinations of a group of people from various walks of life. 45 percent of this group has smoked Chesterfield for an average of over ten years. After eight months, the medical specialist reports that he observed… No adverse effects on the nose, throat and sinuses of the group from smoking Chesterfield. CHESTERFIELD – FIRST and only premium quality cigarette available in both regular and king-size.

1953 Pall Mall Cigarette Baseball Game Ad - Guard Against Throat-Scratch Enjoy the smooth smoking of fine tobaccos the finest quality money can buy Here’s Mildness You Can Measure Outstanding…and they are mild!     1953 Pall Mall Cigarette Baseball Game Ad
Guard Against Throat-Scratch Enjoy the smooth smoking of fine tobaccos the finest quality money can buy Here’s Mildness You Can Measure Outstanding…and they are mild!

1953 Arthur Godfrey Chesterfield Cigarette Milder Ad
NOW…Scientific Evidence on Effects of Smoking! A MEDICAL SPECIALIST is making regular monthly examinations of a group of people from various walks of life. 45 percent of this group has smoked Chesterfield for an average of over ten years. After ten months, the medical specialist reports that he observed… No adverse effects on the nose, throat and sinuses of the group from smoking Chesterfield. MUCH MILDER CHESTERFIELD IS BEST FOR YOUR

1953 Lucky Strike Cigarette Grading Leaf J Koch art Ad - BETTER TASTE BEGINS ON THE FARM Yes, better taste begins with fine tobacco and LUCKIES TASTE BETTER! Yes, better than anyone, can appreciate the fact that better taste in all things grown begins on the farm. Luckies better taste begins with the fine, light, mild tobacco for which they are famous. L.S./M.F.T.—Lucky Strike means fine tobacco. Yes, Luckies taste better because they’re made of the tobacco and they’re made better. So, Be Happy—Go Lucky! Cleaner….Fresher….Smoother!     1953 Lucky Strike Cigarette Grading Leaf J Koch art Ad
BETTER TASTE BEGINS ON THE FARM Yes, better taste begins with fine tobacco and LUCKIES TASTE BETTER! Yes, better than anyone, can appreciate the fact that better taste in all things grown begins on the farm. Luckies better taste begins with the fine, light, mild tobacco for which they are famous. L.S./M.F.T.—Lucky Strike means fine tobacco. Yes, Luckies taste better because they’re made of the tobacco and they’re made better. So, Be Happy—Go Lucky! Cleaner….Fresher….Smoother!

The famous blend of Turkish and United States tobacco – ladies and gentlemen, let us introduce Camel. This R.J. Reynolds Tobacco Company cigarettes brand hit the market in 1913 and quickly became very popular. Camel actually was one of the few brands to survive the World War Two and by the end of it has only strengthened its market position. The appearance of the Camel brand was supported by a very innovative (consider the historical period) advertising campaign. These new cigarettes were promoted with the help of special “teasers” who announced that “the Camels were coming”. A circus camel named “Old Joe" was another promotional element. The animal was lead through various American towns and served as a point of free cigarettes distribution. "Old Joe" was later used as the prototype to design the camel on the cigarettes package. For many years the brand’s advertising campaigns were supported by the "I’d walk a mile for a Camel!" slogan. The soft pack of the regular unfiltered cigarettes was the most famous variety of the brand product line. A starring news broadcaster, Edward R. Murrow smoked as many as four packs of Camel regulars every day, adding heavily to the brand’s popularity. Many celebrities of that time were also involved into this "subliminal" advertising campaign. It turned out to be very successful as the Camel regulars’ sales have really hit the sky limits. Joe Camel is a famous mascot of the Camel brand and was introduced in 1987. The American Medical Association tried to make RJR stop the Joe Camel advertising campaign which the company refused. However, after the repeating appeals in 1993 and 1994 and the community shocking reports of children being greatly aware of this cigarette brand mascot, RJR terminated the Joe Camel campaign in 1997. Instead, a more adult oriented campaign was launched to appeal to the desires and dreams of young and successful people.

Yet the world’s second-biggest tobacco company has sustained growth by focusing on raising profit margins in western Europe and increasing sales in emerging markets where populations and the popularity of smoking are still climbing. Sales in emerging markets account for half of group revenues and profits.

Their importance to BAT’s growth strategy was highlighted last week when it snapped up Tekel Cigarette, Turkey’s state-owned cigarette maker. for $1.72bn (£874m). Tekel was BAT’s first significant acquisition in almost five years. The transaction could strengthen the company’s foothold in the world’s eighth largest tobacco market, lifting its share of the Turkish market from 7 per cent to 36 per cent. BAT’s own Turkish business has been loss-making since it entered the market in 2002.

Mr Adams also said that he would be interested in the monopoly businesses operating in Egypt and Algeria if they ever came on to the market. But for all the praise that has been lavished on BAT’s wide geographical reach, analysts say they are putting most of their faith in BAT’s ability to cut costs. The group has saved £729m in the four years to 2006 by closing factories and cutting production capacities in countries where fewer people are smoking. The company is widely expected to unveil a second round of cost cuts on Thursday.

The Philip Morris name has long been associated with high quality tobacco products and globally recognized cigarette brands. Today the name is proudly carried by the leading cigarette manufacturer in the United States, Philip Morris USA, and by Philip Morris International, the world’s leading international cigarette business with products sold in 160 countries worldwide.

Hilton Cigarettes is the brand that was born as a result of the alliance of pleasure with quality. This is a brand of cigarettes that is a property of the famous cigarettes producers American British Tobacco, which wanted to create a special brand of cigarettes that will find an echo in the tremendous heart of cigarette smokers. The fact that Hilton Cigarettes brand of cigarettes has its name originated from the famous Hilton Family, the owners of the Hilton Hotels  are well-known all over the world through their love for the quality and luxury, characteristics which get with the Hilton Cigarettes.

Philip Morris has raised the price of Parliament Cigarettes brands by 15 cents per pack and the price of Virginia Slims brand by 20 cents per pack.

A spokesman for the largest U.S. cigarette company said that from Jan. 7 through Feb. 24 it will cut the promotional allowances it gives wholesale distributors of Parliament Cigarettes and Virginia Slims Cigarettes.

Reductions in promotional allowances are typically passed on to consumers in the form of higher prices. The average price for a pack of cigarettes can vary widely due to differences in local taxes.

Philip Morris Inc will reduce the Parliament Cigarettes promotional allowance by $1.50 per carton to $2 per carton and eliminate the $2 per carton promotional allowance on Virginia Slims Cigarettes, a spokesman said.

Most experts agree that changes in the Northwest - the first step for a global reduction of the number of distributors JTI, which has already been discussed in the company for more than a year. Most likely, followed by the North-west, will be selected by two distributors in the Central region, and then will turn the Urals and Siberia.
All major competitors JTI a few years ago, have been reconsidering their marketing. For example, Philip Morris, the start of the phased reduction in the number of distributors - now sell products company only three distributors. A similar conversion, held a British American Tobacco (BAT), creating the so-called Moscow headquarters five distributors; now working directly with VAT, only two companies - SNS and Tyusom. "
JTI same until recently sold directly to cigarette companies from 70 different regions of the country. Reducing the number of distributors will allow us harder to control flail situation in the regions. In addition, JTI, in exchange for exclusive certainly will require its distributors to desist from selling competitors’ products.

"The tuff biker Harley and his no less tuff Cowboy friend Marlboro learn that an old friend of them will lose his bar, because a bank wants to build a new complex there and demands 2.5 million dollars for a new contract in advance. Harley and Marlboro decide to help him by robbing the corrupt bank. Unfortunately they target the wrong safety transport and get hold of an amount of a new synthetic drug. Now they are targeted both by criminal bankers and killers of the drug mob."

Entertaining is often a high point of the summer, though not every reader might have the time or inclination to dress herself and her lunch table with such elegant ease. This season’s bare arms made a larger hat almost an imperative (a small hat made one look ‘like a sightseer’). For their table, Hostesses were advised that pale linen and organdie had returned to favour cigarettes, as well as uncontrived flowers and simple, classic crystal and china.

Seneca Indian President Barry Snyder says he’s encouraged by a letter from New York Gov. David Paterson expressing a willingness to talk about the issue of cigarette taxes.

The governor’s December signature on a law that would tax online cigarettes sold by Indian retailers to non-Indian customers angered the western New York tribe. Snyder responded earlier this month by saying the Senecas would find a way to collect tolls on cars that use the New York State Thruway where it runs through Seneca territory.

The Senecas protested the not-yet-enforced tax plans on their Cattaraugus reservation on Sunday. At that time, Snyder relayed the message from Paterson indicating he wants to negotiate with the tribe while legal questions are pending.

Customs have crippled a smuggling syndicate with the seizure of discount cigarettes and liquor worth RM500,000 including duties from a godown at Menglembu industrial area yesterday. Perak customs director Dzulkarnain Abdul Rahman said acting on a tip-off, a party from the Lumut preventive division raided the godown at 1pm and found the contraband goods.
A foreign worker managed to escape the customs raid.
On inspection, customs found 69,168 cans of liquor worth RM120,000 with RM360,000 unpaid duties and 18,000 packets of white cigarettes worth RM42,000 with RM140,000 unpaid duties in the godown.
Dzulkarnain said the white discount cigarettes and liquor worth RM500,000, including duties were believed to have been smuggled from a neighbouring country. The liquor cans had fake duty stamps.
The case was investigated under section 135(1)(d) of Customs Act 1967 for keeping prohibited goods.
Dzulkarnain said offenders could be fined not less than 10 times the value of goods or not more than 20 times the value of goods or jailed not more than three years or both.

NEW DELHI: Japan Tobacco International’s recent move to raise stake in its Indian subsidiary , JTI India, has lit up an old debate related to foreign direct investment in the tobacco or cigarette manufacturing business.

Should fresh FDI be permitted in companies that produce cigarettes? The current policy allows 100% FDI in the area, but subsequent governments have discouraged any new proposal on the ground that the policy cannot be implemented — it has been made void by a commitment made by former Union industries minister late Murasoli Maran in Parliament .

He had assured the House that FDI in tobacco products would not be permitted through issue of fresh licences as it concerned the health of the country’s citizens.

JTI, which owns powerful brands like Camel, Mild Seven, Gold Coast and Salem and launched the Winston brand of cigarettes last year, has proposed to increase its shareholding in its Indian JV from 50% to 74%. The company has said it is bringing in fresh money to restructure the JV with the Thakkar family. The JV company is currently in the red with accumulated losses of Rs 127.74 crore last fiscal.

Critics however, see this as a ploy by the foreign company to expand its business in India. A certain section of the society is of the opinion that if the foreign company is allowed to establish itself in the country, it will eventually promote smoking and also spread the ills that come with it, especially among the youth.

Smoking is injurious to the nation’s health, they argue. So far, so good. The problem however , takes a twist when a big Indian cigarettemaker also jumps into the fray, petitioning the government that the policy prohibits fresh FDI. And when influential members of Parliament also write to respective ministries, it is clear that bigger stakes are involved.

The policy allowing 100% FDI in cigarette manufacturing was announced in August 1998 when the late Sikander Bakht was the industries minister. Bakht’s argument was that since the policy was not on the automatic route, FDI would be permitted by the FIPB on a case-to-case basis.

Also, by way of another policy announced through Press Note 11 of 1998, it was stipulated that any new FDI case would require compulsory licensing under the Industrial (Development and Regulation ) Act of 1951. This implied that expansion of cigarette manufacturing capacities could easily be detected by the government and dealt with as per the merit of the proposal.

The policy to allow 100% FDI was hotly debated across the country as it was felt that it would open the doors to big foreign players to tap a potentially large market. It was soon put under test by a proposal of UK’s Rothmans of Pall Mall, which intended to set up a 100% Indian subsidiary. Around the same time, a plan by British American Tobacco to increase its stake in VST was also being fiercely debated.

When Maran became the industries minister, he chose not to clear any tobacco proposal and told the House that no fresh licenses would be issued. Clearly, if Rothmans had to come in, they required a fresh licence. The government kept the Rothmans’ case in abeyance untiland much to its comfort—it got merged with BAT worldwide and eventually withdrew the case the subsequent year. Since then, the government hasn’t received any FDI proposal, and so the fire remained doused.

With the policy in a limbo, local cigarette manufacturers got a fresh lease of life. While it meant the management of big companies like ITC could stave off any attempts by BAT to increase its hold on the company—BAT has a 33% stake in the Kolkata-based company—it also put a premium on licences.

But what if an existing license-holder wants to restructure his company by buying out a partner’s shares? In JTI’s case, for instance , the foreign company is only buying out shares of the Indian partner, which means that the existing JV will not see any fund infusion—the money goes to the Indian partner. The company has also made it clear that it has no plans to increase capacity.

It is learnt that the finance ministry is of the view that the proposal should be allowed because there is no fear of a capacity expansion in the current scheme. There’s no change in the promoters—only the Indian promoter’s stake gets diluted to 26%. The total equity capital of the company would remain the same. The health ministry is known to have serious issues with tobacco per se, and so it is likely to oppose the deal as well. The department of industrial policy and promotion supported the deal in the last meeting of the FIPB.

The fear however is that once the proposal is cleared, it may once again prompt foreign cigarette makers to try and up their ante in the Indian market by acquiring or attempting to acquire more shares in Indian companies. This could lead to increasing sales of locally-manufactured cigarettes and also of contraband cigarettes, especially of those brands which gain popularity in India.

But at the same time, the government while considering JTI’s proposal, should keep in mind that policy decisions should not be tweaked in the interest of any particular company or group of companies. It has to take a final call on whether the policy of 100% is valid or not.

If it is, it should then take a call on whether the current proposal would lead to propagation of smoking or is it only to better the health of a company the government once allowed to invest in India. If we are committed to the health of our citizens , a blanket ban on cigarette manufacturing is an ideal scenario.

Least we can do is to implement policies like ban on smoking in public places in their true spirit. If we can’t take the call owing to reasons that include the huge revenues cigarette manufacturing generates, we’d do well to be judicious.

BILLINGS - During the past few weeks, cigarettes have started two separate fires in Billings, but officials say that shouldn’t been happening.

Montana Legislators passed a law requiring all cigarettes sold in Montana to be fire safe. That means any cigarettes sold in the state shouldn’t smolder or start a fire after being used.

Billings Police Sergeant Kevin Iffland says enforcement of the new law lies with the state. "That’s where the enforcement comes in, it’s through the Department of Revenue and their agents. They have to make sure the businesses that have the license to sell cigarettes are selling the proper brands and fire safe labels," said Iffland.

The new law went into effect on May 1, 2008.

LONDON - Six companies will pay a maximum of 173.3 million pounds ($342.5 million) after admitting unlawful practices relating to the retail price of cigarettes in the UK, under a deal with Britain’s Office of Fair Trading (OFT).

Japan Tobacco said its Gallaher unit had agreed to pay 93 million pounds for taking part in anti-competitive practices during 2000 to 2003, before the Tokyo-based cigarette group bought the British tobacco company in 2007.

The other five groups, all retailers, were Wal-Mart-owned Asda, First Quench, One Stop Stores (formerly called T&S Stores), Somerfield and TM Retail, a statement by the British regulator said on Friday.

A number of the six parties had previously applied to the OFT for leniency and the total penalties the groups agreed to pay, if all leniency and early resolution discounts are given, is 132.2 million pounds, rather that the pre-discount penalties total of 173.3 million pounds, the OFT said.

The OFT did not say when a final decision on the level of fines would be taken.

The regulator added that supermarket group Sainsbury Plc was the first to apply to the OFT for leniency and will receive complete immunity if it continues to co-operate.

Investigations will continue against Imperial Tobacco Plc, Shell and retailers Morrisons, Morrisons-owned Safeway, Tesco and the Co-operative Group, the OFT said.

Imperial Tobacco said in a statement it had not admitted to any infringement of competition law and had not acted in any way contrary to the interests of consumers. It said it would continue to co-operate with the OFT. (Editing by Mike Elliott and David Holmes)

LONDON — Six retailers and tobacco firms have agreed to pay combined fines of more than 130 million pounds after admitting "unlawful practices" relating to retail tobacco prices, the Office of Fair Trading said.

Retailers Asda, Somerfield, First Quench, One Stop Stores and TM Retail plus manufacturer Gallaher agreed to pay 132.3 million pounds (165 million euros, 263 million dollars).

The fines come after the competition watchdog accused 12 firms of price-fixing, by either co-ordinating to link the price of some brands to rival products or exchanging proposed future retail prices between competitors.

An investigation into the six other firms named by the OFT three months ago — the Co-operative Group, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco — is continuing.

OFT chief executive John Fingleton said in a statement Friday evening that companies should set their prices independently, to ensure the markets work well for consumers and the economy.

"The OFT is very pleased that the early co-operation of these parties has enabled the swift resolution of some of this case, which will significantly reduce the costs of pursuing the investigation for the OFT and the businesses concerned," he added.

The OFT investigation covered the period 2000-3. The companies which came to "early resolution agreements" led to a reduction in their fines, the watchdog said.

Even so, the Financial Times said Saturday the sum was still the biggest collective penalty the OFT had handed down.

TOKYO — Japan, long known for its smoker-friendly policies, is debating a substantial tax increase that could bring Tokyo in line with the U.S. and Europe.

The ruling Liberal Democratic Party’s annual tax commission is expected to review a proposal by key lawmakers that could more than triple the retail price of a pack of cigarettes to about $10.

The backers of the higher tax are looking at the additional revenue as a way to cut Japan’s ballooning budget deficit without taking the deeply unpopular move of raising its consumption tax.

Japan Tobacco Inc., which has a virtual monopoly on cigarettes here and is 50% owned by the government, argues that more-expensive cigarettes would depress sales and lead to lower tax revenue. The company, the world’s third-largest tobacco maker by volume after Altria Group Inc. and British American Tobacco PLC, on Tuesday sent executives to lobby the LDP against an increase.

"The government can’t hope for increased tax revenue, because such a big raise in the tax would mean consumption plummets," JT Deputy President Ryoichi Yamada said afterwards. "It’s unfair that smokers should have to bear the burden" of poor government finances.

Japan needs to boost government revenue to pay for pensions for its rapidly aging population. Government debt was 849 trillion yen ($8 trillion) at the end of March, equal to more than 160% of the country’s gross domestic product. One measure put forward to meet the shortfall is raising the 5% consumption tax. But consumers are sure to oppose that, and Prime Minister Yasuo Fukuda, already suffering from low approval ratings, has been reluctant to push the idea.

Many in Japan’s ruling party see higher tobacco tax as a promising alternative. In mid-June, about 45 lawmakers formed a bipartisan league to argue the case for higher taxes. One of its main advocates is LDP heavyweight Hidenao Nakagawa, former chief cabinet secretary and an opponent of raising the consumption tax.

The price of a cigarette pack in Japan is among the lowest in the industrialized world. On average, a pack costs about 300 yen, of which roughly 60% is tax. That is less than half of what a pack costs in New York and less than a third of what it costs in the United Kingdom.

These lawmakers argue that raising the cigarette tax would boost Japan’s tax revenue from the product, which was around 2.2 trillion yen for the year ended March 2008. If cigarette consumption remains unchanged, charging 1,000 yen a pack would increase cigarette-tax revenue by 8.5 trillion yen a year, according to Barclays Capital. But surveys show that as many as three-quarters of smokers say they would try to quit if cigarettes cost 1,000 yen a pack, though it’s unclear how many would succeed.

Health proponents, including the country’s physicians and Health Ministry, say an increase in cigarette taxes would cut down on health-care costs. Japan has one of the highest smoking rates in the industrialized world, at around 40% for men and 10% for women. Lung cancer is a leading killer among men.

BELGIUM – Sales in cigarettes were down by 12 percent or 750 million cigarettes during the first half of 2008.
This is the first significant drop in cigarettes sales in Belgium.
There has also been a decrease in tobacco sales. Nearly 3,400 tonnes of tobacco were sold during the first six months of 2008. Tobacco sales are down 8.5 percent in comparison with 2007.
This is good news for Belgians’ health but bad news for the treasury as they will lose out on VAT and duty worth EUR 35 million.
The Health Ministry identifies several factors that triggered the fall in sales: legislation banning smoking in restaurants and public places and 2007’s price rise.
Belgian cigarette sellers are also feeling the competition from Eastern European producers. Cigarettes are far cheaper in Eastern Europe and are routinely smuggled to Belgium.

CONCERNS have been raised about the availability of candy-style imitation cigarettes to children in Scarborough.

The sweets, which look remarkably like a hand-rolled cigarette and packaged in replica cigarette packets are now accessible in some shops in Scarborough.

A Scarborough couple have brought it to the attention of the Evening News after witnessing, what they thought, was a child smoking.

John Palethorpe, of Maria’s Court, said: "The child, was with his mother and he was about nine-years-old. She was smoking and he had one of these cigarettes pretending to smoke – emulating exactly what the mother was doing."

He said he and his wife, Sandra, realised that it was a sweet and were then alerted to the fact that this type of sweet was available in Scarborough shops.

He added: "It is an absolute disgrace. The packets look so much like an American or European cigarette packet. It is diabolical that these should be allowed to be sold to children."

North Yorkshire Trading Standards said it was not illegal to sell the products.

Derek Smith, consumer services section leader, said: "Sugar ‘cigarettes’ and novelty ’smokers sets’ made from chocolate or liquorice, were common place at one time.

"As the public became more aware of the dangers associated with smoking tobacco, coupled with the health promotions to prevent children taking up the habit, the demand for these types of products waned.

"Recently there has been a trend for buying so-called retro candy such as aniseed balls and spangles. It’s unfortunate that chocolate cigarettes have re surfaced but it’s not illegal to sell them and it’s really up to retailers to decide whether or not it’s a product with which they wish to be associated."

Mr Palethorpe said: "This type of sweet is just encouraging children to smoke. Both myself and Sandra smoke and we believe it be the worst thing in our lives that we have ever done. We try to cut down, but it is hard. And now we both suffer from illnesses that are smoking-related."

Cigarette vending machines and packets of 10 could be outlawed under government plans aimed at preventing children and young people smoking.

The plans, which include banning branding and logos, apply to England, Wales and Northern Ireland. Similar plans have been unveiled in Scotland.

Smokers’ lobby group Forest said there was "no evidence" to show the plans would to cut smoking in young people.

Meanwhile, a new TV advert campaign is targeting parents who smoke.

The adverts warn that children of smokers are three times more likely to take up the habit than those of non-smokers.

Under current pricing, a packet of 10 cigarettes cost about £3, compared to nearly £6 for 20.

Last week the Scottish Government announced a range of proposals to restrict tobacco sales in Scotland - including a ban in shops from displaying cigarettes in "pride of place" on their shelves.

On the latest consultation document, Public Health Minister Dawn Primarolo said it was vital to take away temptation from children.

"Protecting children from smoking is a government priority and taking away temptation is one way to do this," she said.

"If banning brightly coloured packets, removing cigarettes from display and removing the cheap option of a pack of 10 helps save lives, then that is what we should do, but we want to hear everyone’s views first."

Imperial Tobacco Group Plc, Europe’s second-largest publicly traded cigarette maker, plans to cut 2,440 European jobs after buying Altadis SA for 12.6 billion euros ($20 billion) earlier this year.

Six of 58 factories will shut as staff numbers fall by about 6 percent, Imperial said today. The plants slated for closure are located in its hometown of Bristol, England, as well as Spain, France, Germany and Slovakia. The maker of Davidoff cigarettes fell 3.3 percent in London trading as the plan failed to persuade some analysts to lift their savings estimates.

Western European tobacco companies have eliminated jobs as governments restrict smoking and advertisements. Gareth Davis, Imperial’s chief executive officer since the company was spun off from Hanson Plc in 1996, has beat cost-savings goals consistently since the cigarette maker bought German rival Reemtsma in 2002 and then cut 4.4 percent of its jobs.

Expectations for today’s announcement “got carried away,'’ wrote Jonathan Leinster, an analyst at UBS in London, who repeated his “sell'’ rating on the stock today. He left his savings estimates unchanged and said he’s “not satisfied'’ with expense reduction related to the Altadis merger.

Almost half of the job cuts, or 1,060 positions, will take place in France, equating to almost a quarter of Imperial’s local payroll. The company stuck to forecasts for expenses of 600 million euros for the reductions and plant closings and annual cost savings of 400 million euros by the year through September 2012.

Shares Retreat

Imperial fell 64 pence to 1,879 pence in London trading. The stock has declined 20 percent in 2008 after rising more than sixfold in the prior eight years.

The cigarette maker will need to negotiate with unions over the job cuts and gain approval from the French and Spanish governments. Plans to reduce payrolls have sparked strikes this year by French workers from hospital staff to employees of newspaper Le Monde.

“They’re brutally tearing the company apart,'’ Jorge Tome, a representative of Spain’s Comisiones Obreras union, said in an e-mailed statement. “Once again they’re showing that the only thing that counts is profit and not a social commitment.'’

The takeover of Madrid-based Altadis added about 27,000 employees to Imperial’s work force. The Iberian company, which was formed when Spain and France merged their tobacco monopolies in 1999, makes cigarettes under brands including Gauloises and Gitanes and also is the world’s largest cigar manufacturer.

As after the end of September 2008 the Estonian retailers will no longer be able to sell cigarettes with old tax stamps on which lower excise taxes have been paid, writes Postimees Online/LETA.

Tobacco retailers estimate that the only way to earn money on stocks that will remain after that deadline will be to destroy them as then the State will return the excise tax paid on them.

Different State authorities have come up with different estimations on how large are the stocks held in cigarettes in Estonia at the moment. The Ministry of Finance estimates that the stocks should be enough until the end of summer while the director of Institute of Economic Research Marje Josing stated that nine months’ reserves have been imported to Estonia.

Toronto - Thanks to a new law, which came into effect over the weekend, cigarettes are no longer visible to customers at stores across Ontario.

The new law requires stores to keep the packages out of view.

“This marketing tool … is a wall of temptation for smokers who have made the decision to quit,” said Joanne Di Nardo, spokeswoman for the Ontario Tobacco-Free Network. “Well-documented research and evidence shows that these retail display stands increase tobacco sales by 12 percent to 28 percent.”

When asked how it has effected sales so far, one store in Toronto told EON, “oh…people just laugh….hasn’t stopped anyone from buying their smokes.”

Other provinces are expected to implement a similiar program

STEPHENS CITY — A pack of smokes will cost 25 cents more in town when a new tax adopted Tuesday takes effect.

The Town Council voted 6-1 at its regular meeting to approved an ordinance creating a 25-cent excise tax on a pack of 20 cigarettes. Mayor Ray Ewing, Vice Mayor Joy Shull and councilmen Ronald Bowers, John Hollis, Lindel Fravel Jr. and Micheal Grim voted to approve the ordinance on the final reading. Councilman John Harter gave the dissenting vote.

"There were enough people in this town that didn’t like the idea, and somebody had to vote against it," Harter said, explaining his vote.

Bowers disagreed.

"I think it’s a fair tax because you’re putting it on an elected product," Bowers said.

Currently, four businesses within town limits sell cigarettes and would have to charge the tax. Sellers must display a cigarette stamp provided by the town. Taxes will be collected by the town treasurer. The tax per individual cigarette will be 1.25 cents, but the total revenue should be around $25,000, according to Town Manager Mike Kehoe.

In other business, the council:

* Adopted a resolution to address "Virginia’s transportation funding crisis," by which the town supports the efforts of the governor and the General Assembly "to act swiftly and decisively to approve legislation that will address the transportation funding crisis at the statewide, regional and local levels."

The resolution also states that such legislation should include new tax and fee revenue, including tolls on new highways, to ensure safe roads, ease congestion, promote economic development and provide consumer choices.

* Held a public hearing on the proposed 2008-2009 budget. No one spoke during the hearing. The total budget is proposed at $1.45 million, compared to $1.66 million for the current fiscal year. The council scheduled a June 12 special meeting at which they plan to vote on the budget.

Also, the council approved a motion extending the deadline to pay real estate and personal property taxes to June 30. Bills were to be due Thursday.

* Voted unanimously to award a contract to American Disposal Inc. for refuse collection. The contract is for one year at $101,192. Evergreen Waste Inc. currently provides the service for nearly $90,000 but submitted a bid of $125,881 for the next year, the second-highest of three bids.

* Voted unanimously to adopt a resolution requesting that the Virginia Department of Transportation reduce the speed limit on U.S. 11 (Valley Pike), 0.95 miles south of the previous town limits, from 55 mph to 45 mph.

Cairo: When rumour had it that the Egyptian Parliament was considering a proposal to levy taxes on tobacco to shore up the public budget, Hafez, a governmental employee, dashed off to nearby kiosks and shops to stock up on packs of cigarettes.
Hafez, a chain smoker for nearly 20 years, bought as much tobacco as he could lay his hands on - and as his budget could allow. "My hunch was right. Now I have a decent stock for the hard times ahead," he grins, as his gaping mouth reveals several decayed, yellow teeth.
On the night of May 5, the People’s Assembly approved a package of economic measures proposed by the government to finance a 30 per cent pay rise for public-sector employees, announced by President Hosni Mubarak in a Labour Day speech days earlier. The increase in salaries and pensions, effective as of this month, will cost the public coffers around 12.5 billion Egyptian pounds (Dh8.5 billion), according to government officials.
Controversial steps
The controversial measures include increases in fuel and cigarettes prices, and vehicle licence fees. Rises in tobacco prices range from 10 per cent for the local brands and 33 per cent for the imported luxury brands.
Particularly contentious are the hikes in fuel, which the public and opposition MPs have said will trigger another wave of price increases in this country of 76 million where around 40 per cent of citizens are believed to be living below the poverty line.
"Smokers will suffer as well," says Mustafa Hamed, a Cairo taxi driver. "I have been smoking two packs a day for more than 15 years now." According to the latest rise in prices of tobacco, local cigarettes have increased by 25 piastres per pack. For me, this means an extra 15 Egyptian pounds per month," Hamed, a father of five, fumes. "I cannot kick this habit now. It soothes my nerves when customers haggle over fares - and this happens often now that the petrol prices have gone up too," Hamed told Gulf News.
Egypt has 13 million smokers consuming around 85 billion cigarettes, or some 613 tonnes of tobacco annually, according to a UN report released at a recent anti-smoking seminar in Cairo. To Fadl Sabri, a clerk, the time has come for him to stop smoking once and for all. "I have just made this decision for health and financial reasons," says Sabri, who has been smoking for around 15 years.
"Doctors have repeatedly warned me against smoking because I have heart trouble. But now with cigarettes becoming so expensive, this decision [quitting smoking] is unavoidable anyway."

As many as 40 people from the small provision shops and supermarkets in the Belait District attended the Tobacco Order Briefing held at the multipurpose hall of the Health Office yesterday.
The briefing was presented by Senior Medical Officer of the Tobacco Control Unit, Hj Rozaimi Hj Tengah. The briefing was mainly aimed at enhancing participants’ understanding in protecting public health as well as to gain their cooperation with regard to the Tobacco Order to be implemented come June 1.
Business owners were also briefed on cigarettes sales, licences and rules and regulations governing such business. Under Section 2 of the Controlling of Local Products Act, it is prohibited to sell cigarettes to those under 18 years of age (Chapter 9), by which any form of identification will be asked before purchase. Those who breach the rule will face a fine of up to B$5,000.
If any of the said conditions under the Tobacco Order 2005 and its regulations 2007 go unheeded, business owners’ licences will be revoked or suspended.

TOPEKA | Kansas is improving its rate of federal compliance with rules regarding the sale of tobacco products to minors. The federal Synar Amendment requires states to maintain a compliance rate of 80 percent or higher. In 2004 the state fell below that target rate. Each year the Kansas Division of Alcohol Beverage Control and the Department of Social and Rehabilitation Services conducts random checks of cigarettes retailers to make sure they are not selling these products to underage youths. Of those inspected last year, 87.1 percent did not sell tobacco products to minors. That was a 7 percent improvement over similar inspections the previous year, according to department officials.

TOKYO, - Japan Tobacco Inc, the world’s No. 3 tobacco maker, said it may raise the price of cigarettes — its first non-tax linked hike in 15 years — to help offset nine straight years of a shrinking market.
The increase would come on top of rises in everything from gasoline to beer and noodles that have already burdened consumers in the world’s second-largest economy.
Japan Tobacco, which is half-owned by the Japanese government, has seen costs rise even as it grapples with an ageing population and widening health consciousness that have reduced the ranks of smokers.
It is also suffering from the yen’s surge against the dollar and fallout from a food scare earlier this year involving pesticide-contaminated dumplings it imported from China.
"First we want to try to reduce our costs, then we want to shift customers to higher-priced, value-added products," spokeswoman Yukiko Seto said on Friday .
"After that, we might consider that sort of thing," she added, confirming a Nikkei business daily story quoting Japan Tobacco President Hiroshi Kimura as saying price hikes were an option.
If the company raises cigarettes prices, it will be the first time since 1993 that a price increase has not been linked to taxes. Japan Tobacco makes Mild Seven cigarettes and owns the Camel, Winston and Salem brands outside of the United States.

BEIJING—Li Zhigang inhaled deeply from a cigarette while sitting on his haunches last week near the Beijing Railway Station before deciding there was no way that tighter smoking regulations would change where or when he would grab a smoke.

Li, a 30-year-old real estate salesman, said he could support tighter rules in theory but could not see himself changing his habits.

More people are killed in fires started by unattended cigarettes in the United States than any other kind of fire. Those numbers, however, may drop thanks to a new kind of cigarette.

They are called "fire-safe" cigarettes. Legislators are expected to pass a law that would prohibit the sale of any other kind of cigarette in Hawaii.

The latest numbers from the National Fire Protection Association show cigarettes started more than 82,400 fires in the U.S. in 2005. Those fires killed 800 people and injured more than 1,660 people.

The most common fuel for those fires … mattresses. People fall asleep in bed while smoking and some mattresses burn very quickly.

So a new generation of cigarettes has been developed.

They are called "fire-safe" cigarettes, or LIPs which stands for low ignition propensity.

"It’s a cigarette that when you don’t smoke it, you’re talking … you set it down, it’ll go out. It won’t keep burning like traditional cigarettes do," said Christopher Maxwell, who owns a store called Tobaccos of Hawaii on Atkinson Street.

LIP cigarettes are made with bands of thicker paper. Those bands act like speed bumps to slow the burn making them less likely to start fires.

If legislators pass the proposed "fire-safe" cigarette bill as expected, LIP cigarettes will be the only kind of cigarette you will be able to buy in Hawaii beginning Oct. 1, 2009.

Maxwell already sells lots of the "fire-safe" smokes.

"No one’s given me any negative feedback. There’s obviously no flavor difference. Most people don’t even know it’s going on. Virtually the entire cigarette industry is going to LIP cigarettes," Maxwell told KGMB9.

A spokesman for the Honolulu Fire Department said LIP cigarettes are a step in the right direction, but smokers still need to adhere to safety rules. Never smoke in bed. Smoke outside instead of indoors. And keep matches and lighters out of sight and reach of children.

State Treasurer Scott Meacham says he would support the idea of having one single compact rate for all American Indian tribes that sell cigarettes in Oklahoma.
Meacham says he is not bailing out on a multiple-stamp system, but it would be easier to enforce a single rate. He believes that would help Oklahoma move forward with cutting down on smoking while raising more money to benefit better health in the state.
Attorneys from the Oklahoma Tax Commission and tribal smoke shops are currently working on an agreement that would limit the sales of low-tax cigarettes in the state.
The agreement would lift a restraining order and cut down on the number of cigarettes that can be sold with 6-cent tax stamps intended for use near the state’s borders.
Smoke shops that aren’t near a border must sell 86-cent stamps.

In just over six weeks, cigarettes will become invisible in stores across Ontario and Quebec, but city vendors say the new law will only cost them money. On May 31, the final phase of the 2006 Smoke-Free Ontario Act will be to force vendors to dismantle so-called “powerwalls” — the prominent cigarettes displays generally positioned behind retail checkouts — but a representative for retailers predicted yesterday that it would be costly and difficult for stores to comply.
Though retailers have had two years’ notice, Chris Wilcox, chair of the Ontario Convenience Store Association, said details of the law were not distributed until last month, leaving stores scrambling. “It’s going to be a rush. Even for us,” said Wilcox, who is also general manager of 46 Quickie Convenience Stores in Ottawa. “You’re going to see a few places using curtains and bed sheets.”
Wilcox said larger chains such as Quickie will have the resources to make changes on time, but that it will be difficult for smaller businesses.
Walid Norat, the owner of O’Connor Smoke Shop, is concerned about the loss of revenue, but said his store will not lose as much business as others, because he tends to get specific clientele who know his wares, even if they’re not displayed.
“People who come in here tend to know what they’re looking for,” he said. Roland Comerford, who was celebrating his 60th year of operating Comerford’s Cigar Shop on Bank Street yesterday, will be forced to cover his pipe and cigar displays with frosted glass. “We’re going to have a catalogue for people to browse, but they have to ask for it and we have to put it back under the counter when they’re done,” he said.
Comerford expects to see a drop in sales, because of the “out of sight, out of mind” effect. Comerford’s store generates more than 50 per cent of revenue from cigarettes and tobacco.
Wilcox doubts that concealing cigarettes in stores will help reduce youth smoking rates, noting powerwall bans in Saskatchewan and Manitoba have not had any effect. According to Health Canada, in 2004, 22 per cent of people over 15 years old smoked. Last year that was around 25 per cent.

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When I was younger I have had Candy cigarettes that were real candy and did not contain tobacco, but it was fun back then to pretend I was smoking like mum and dad. Now I am 30 years old and I still have never smoked, but we are seeing Candy Cigarettes coming back and this time they have real tobacco in them.
This product is created because the tobacco industry knows that first-time users find smoking unpleasant, so they create flavorings with sugars like Winter Mocha Mint, Warm Winter Toffee and flavours are used like grape, cherry, peach, strawberry and chocolate. Some of these products have been given nicknames like Barbie Camel, which sounds like it’s for girls.
How do you feel about real candy flavored cigarettes, is it right or wrong and do you feel children will be attracted to these tobacco sweets?

MUMBAI/KOLKATA: With the government yet to budge on the tobacco industry’s demands, Kolkata-based ITC is readying for a possible hike in prices of non-filter cigarettes . The company, which is believed to have stopped production of the variety, is contemplating this move, as an extended closure would mean huge losses for the company and for those dependent on it.
Sources say ITC plans to hike prices soon and the product with the new price tag would be made available in the market by the end of this quarter. The company is also likely to resume production by then. ITC officials were not available for comment.
In his last Budget, finance minister P Chidambaram increased excise duty on non-filter cigarettes to bring them on a par with filter cigarettes. For cigarettes between 60 mm and 70 mm length, excise duty was increased from Rs 546 to Rs 1,323 per 1,000 cigarettes while for cigarettes below 60 mm, it went up from Rs 168 to Rs 819 per 1,000 cigarettes .
As per an analyst with a local brokerage firm, the company would only look at a price hike if the conversion rate to filter cigarettes is quite low. “The company is adopting a wait-and-watch policy as far as conversion from non-filter to filter cigarettes is concerned. If the conversion is quite low, then the company would not consider it,” Anand Mour of Prabhudas Lilladher said.

In a victory for the tobacco industry, a federal appeals court threw out on Thursday an $800 billion class-action lawsuit on behalf of smokers who said they had been misled that light cigarettes were safer than regular ones.
Plaintiffs’ lawyers wanted to represent millions of people across the country who had smoked light cigarettes . But the court, saying it was impossible to generalize about why smokers chose light cigarettes, ruled that the group could not be treated as a class. Instead, smokers wanting to sue over the issue would have to do so individually.
There might be various reasons for a smoker to choose a light brand other than “the belief that lights were a healthier alternative,” the ruling said. Other possibilities are that a lights smoker “was unaware of that representation, preferred the taste of lights, or chose lights as an expression of personal style.”
Even though the ruling had been generally expected, and tobacco company stocks were little affected by the decision, analysts still viewed it as positive for the industry.
Several experts said the ruling, the latest in a string of industry victories in cases involving light cigarettes, relieved the tobacco industry of potentially billions in damages and could also deter other similar class-action lawsuits around the country. “It may be persuasive to judges around the country who might well be watching it,” said Carl W. Tobias, a law professor at the University of Richmond.

AUGUSTA — Health groups urged lawmakers Wednesday to increase the cigarettes tax by a $1 per pack, saying the increase will encourage more people to quit smoking and generate more money for health programs.
Health Policy Partners of Maine, which includes heart, lung and cancer groups, also announced survey results that show 76 percent of Mainers support a cigarette tax increase.
"Maine people understand the importance of high tobacco prices and are counting on their state legislators to use this powerful tool to reduce the physical and financial toll of tobacco use," said Ed Miller, CEO of the American Lung Association in Maine.
If Maine increases the state cigarette tax from $2 to $3 per pack, it would be the highest state tax in the country. Miller said other states, such as New York, are also considering tobacco tax increases.
The announcement came just one day after Gov. John Baldacci said he would support increasing the cigarettes tax to help pay for the state’s Dirigo Health program. Last year, Baldacci proposed a $1 per pack increase as part of the budget, but it was rejected by lawmakers.
This time around, House Majority Leader Hannah Pingree, D-North Haven, is sponsoring a bill to make changes to state health insurance laws in an attempt to lower the cost of health care in the state. Her bill includes a 50-cent-per-pack tax increase on cigarettes to help fund Dirigo Health, the state’s insurance program for individuals and small businesses.
Miller and others who gathered in the Statehouse Hall of Flags said they would support using some of the money for Dirigo Health and the rest for other health-related programs. "This is health policy," Miller said. "It’s not tax policy."
On the other side of the issue, smokers who stopped by the Maine Smoke Shop in Augusta said they feel singled out by the state. "I think they ought to back off the smokers for a while and go after the drinkers," said Charles McKenney, of Augusta. Sheila Tondreau, also of Augusta, said a tax increase is not a good idea.
"It’s always us that gets hit," she said. "You don’t see them taxing all these other people." Chris Jackson of the Maine Oil Dealers Association said convenience stores represented by the association have been hurt by past tobacco tax increases. "For small retailers, this is not about smoking or Dirigo Health, it’s about trying to stay competitive with our counterparts in New Hampshire," he said.
Jackson said convenience store owners with shops in Maine and New Hampshire saw cigarette sales drop here but increase in New Hampshire after the last tax hike. In 2005, Maine lawmakers set the current tax at $2 per pack. Jackson also said cigarette taxes are not a stable source of funding. "We think it’s unfair to mislead people to think Dirigo Health would have a reliable source of funding if the tobacco tax passed," he said.
Members of the health coalition said increasing the tax by another dollar will bring in an additional $64 million a year in revenue to the state. In addition, they say it will compel some people to stop smoking because they can no longer afford it, and that it will cut health care costs caused by smoking-related illnesses. "This is about Maine’s future," said Megan Hannan of the American Cancer Society. "We need to raise the price of cigarettes as soon as possible."

For the first time since Philip Morris, Esq., opened a tobacco shop on Bond Street in London in 1847, the company’s U.S. and international businesses will be separate.
The Altria Group Inc. holding company split its two cigarettes units on Friday, sealing the deal by giving its shareholders stock in the newly independent Philip Morris International. Altria now consists of Philip Morris USA, cigar maker John Middleton Inc., a money-management arm and a 28.6 percent stake in Britain-based beer maker SABMiller PLC. It will move its headquarters to Richmond, Va., from Midtown Manhattan.
Both Philip Morris companies produce Marlboros. PMUSA also makes Virginia Slims, Parliament and Basic cigarettes while PMI makes the L&M, Bond Street and other brands.
The split is not only the final step to a restructuring that began in 2004, it essentially rolls back a strategy to turn the Philip Morris Cos., as it used to be called, into a general consumer products company. It widened its product offerings beyond cigarettes and beer in 1985 with the $5.6 billion acquisition of General Foods.
By 2003, it had adopted the Altria name. But in November 2004, it announced its plan to spin-off of Altria’s remaining majority stake in Kraft Foods Inc. and separate the two tobacco units, reversing the idea of keeping the disparate holdings under one corporate umbrella.
The breakup frees Philip Morris International from legal and public relations concerns here in the U.S. In preparation, PMI has created a slew of new Marlboro-branded products for fast-growing markets around the world. Some of the cigarettes are designed to cater to local tastes: the clove-based Marlboro Mix 9 in Indonesia; thicker Marlboro Wides in Western Europe, Japan and Mexico; and Marlboro Fresh Mint and Crisp Mint in Hong Kong.
Shareholders got one share of Philip Morris International stock for every one share of Altria they own. Altria will keep its MO ticker and Philip Morris International will adopt the PM ticker. The board has announced dividends that are equivalent to Altria’s before the split, and said it would buy back $7.5 billion in shares over two years.
The larger PMI, which operates in more than 160 countries, earned revenue of $55.1 billion in 2007, compared PMUSA’s $18.49 billion.
Louis Camilleri, who was chief executive of Altria, is the new CEO of the international business. PMI has an office in New York but most of its staff works out of a Lausanne, Switzerland, office. While PMI escapes the shadow of pending and yet-to-be-filed lawsuits in the U.S., critics of the industry are wary of the damage its marketing power could have on consumers in poorer nations.
The U.N.’s World Health Organization issued a report in February that said the "tobacco epidemic" could claim 1 billion lives by the end of the century unless governments dramatically step up efforts to curb smoking. The agency reported that governments around the world collect more than $200 billion in tobacco taxes every year but spend less than one-fifth of 1 percent of that revenue on tobacco control.
"Faced with an epidemic that kills 5.4 million people each year, the world will not tolerate increased profits for a few, at the expense of the health and lives of so many," Kathy Mulvey, international policy director for Corporate Accountability International, said in a statement Friday.
Shares of Altria, trading on a when-issued basis without the value of PMI, fell 70 cents to $22.22 on Friday. Shares of PMI, on a when-issued basis, rose 38 cents to $51.06. Both will begin regular-hours trading Monday on the New York Stock Exchange. PMI shares will also trade on the NYSE Euronext Paris and SWX Swiss exchanges. Both will be on the Standard & Poor’s 100 and 500 Indices, Altria said in a statement Friday.

Increasing Florida’s outdated tax on cigarettes would have been wise a few years ago when the economy was soaring. It’s even better idea now as lawmakers struggle to cover a budget shortfall and find money for essential needs like health care. Last summer, Gov. Charlie Crist politely described as "innovative" a proposal to boost the state’s cigarettes tax for the first time since 1990, but quickly added, "I’m not for raising taxes, as you know."
Meanwhile, just about everything else seems to be fair game for a hike. Five years ago, the Republican-controlled Legislature raised $150 million extra by increasing fees paid by drivers, college students, Medicaid patients, cell-phone users, hunters and mobile-home residents. Cigarette taxes remained unchanged.
Crist’s attitude has varied only slightly. Asked about two weeks ago whether the state should consider a cigarette tax this year, Crist replied, "No. No new taxes. What I think we need to do is be innovative." The overall mood in Tallahassee, however, has changed substantially over the past year - and with good reason.
About two weeks ago, the Legislature chopped $512 million from the current fiscal year’s budget - which is now $1.5 billion less than when it was approved last May.
Lawmakers now have to write a budget for the fiscal year that starts July 1. And they found out recently that they’ll have nearly $2 billion less to work with that they previously expected. In other words, the Legislature will either have to make even deeper cuts in essential state services, or find new sources of revenue.

Ontario should follow the leads of New Brunswick and British Columbia and pass legislation enabling it to sue the big cigarettes companies to recover health-care costs associated with tobacco-related diseases. The way has been paved by those two provinces, and some American states, and it makes no sense for Ontario not to follow suit in a bid to recoup some of the funds paid by taxpayers that are directly attributable to the use of a cigarettes product.
Make no mistake, the big tobacco companies knew decades ago that their products are deadly. Heart disease, stroke, high blood pressure, cancer - the list of tobacco health ills goes on.
Dr. Richard Schabas, medical officer of health for the Hastings and Prince Edward Counties Health Unit, was one of about 100 mostly health officials who, in a letter sent about two years ago, urged Premier Dalton McGuinty to file the lawsuit.
The province declined without really explaining why. McGuinty should spell out the reasons for his decision to Ontarians.
New Brunswick passed legislation earlier this month that gave the province the legal authority to file the lawsuit against the tobacco companies. Attorney General T.J. Burke said those firms must be held accountable and that the province is moving ahead "aggressively with legal action."
Why not Ontario?
The Liberals imposed a new health tax in 2004, $750 deducted annually from pay and pensions in the form of an income tax. The government said the tax was necessary to keep the expensive health-care system running. Yet the lawsuit is a potential source of income that could negate the need for a regressive tax and provide funds to pump into health care - a system that is straining to counter the effects that tobacco has brought on our hospitals and cancer care system. Tapping into tobacco riches is the way to go - clearly provincial citizens deserve and need the money.
In Ontario, it is estimated that tobacco-related diseases cost the economy at least $1.7 billion in health-care annually, result in more than $2.6 billion in productivity losses and account for at least 500,000 hospital days each year, according to the Ministry of Health and Long-Term Care.
Meanwhile, tobacco taxes generated about $1.4 billion in 2004-05, the ministry estimated. Ontario is clearly losing more in health-care to tobacco than the weed is bringing into provincial tax coffers. For tax masters like McGuinty, that should tip the balance in favour of legal action.
Schabas made the point - correctly - that if a lawsuit is filed, it places tobacco companies in financial jeopardy.