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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

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.

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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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.

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."