JT International: The latest decision to increase excise tax on cigarettes - is an aggression against the buyer

"The unprecedented increase in excise taxes on tobacco products in Ukraine, taking place from December 2007 to provide a new pressure on the already low purchasing power," - said Marchant Case, CEO, JT International Company Ukraine ", -" we are working on this the market for more than 15 years, having invested more than $ 130 million, but never before have we been exposed to so many spontaneous tax initiatives during the past 2 years, taken in violation of the Constitution and some laws of Ukraine. "
The bill number 4707, Parliament voted yesterday, once again significantly increases the rate of excise duty on tobacco products. Now about 65% of the cost of a pack of cigarettes a consumer pays the government in taxes. This was due to the fact that the weight of excise tax in the price of a pack rose to 5.11 times on different brands of cigarettes in December 2007. The situation is also aggravated by a significant increase in costs of raw materials for the production of tobacco products and the devaluation of the hryvnia, which are borne by manufacturers and sellers.
Consumers will have to pay in 2,5-6,5 times more for their usual brand, compared with December 2007. While the price of cigarettes has increased significantly since 2007, unfortunately, the growth of real incomes of Ukrainians was one of the weakest in Europe. In terms of gross domestic product per capita in Ukraine cigarettes now one of the most expensive cigarettes in Europe.
Unpredictable and inconsistent tax policy has an extremely negative impact on legal tobacco production, which after the May increase the excise tax has decreased by more than 20%.
We can clearly see a repetition of the situation in 1999, when the tax increase during the crisis has significantly undermined the legitimate tobacco business. Every third pack of cigarettes sold in Ukraine at that time, was smuggled out of Russia or Moldova. New tax increases on cigarettes in Ukraine make the stamps from Russia and Moldova is significantly cheaper, encouraging the illegal trade in them again. We are very disappointed that the lessons of the past were forgotten.
In May-August 2009, the total excise levy on products originating in Ukraine and imported tobacco products amounted to 65% of the planned increase in excise duties at the last earnings in the budget. The growing illegal cigarette trade in the future will only increase the budget deficit, destroying the legitimate industry and making it impossible to further investment plans.
Initiatives to increase the excise tax on tobacco products have caused serious damage to our business. "JT International was forced to close the tobacco factory in Cherkassy in May 2009, and a reduction were more than 400 employees. In October, we had two weeks to suspend work at our factory in Kremenchug, because of declining production. Soon, it may be necessary to repeat.
"JT International understands the need to increase the excise tax on tobacco products. But we expect that the state will do so gradually, in a systematic and predictable manner as is done in many countries. The company is ready to share its experience in the field of taxation with the Government

The Kirghiz minister has urged to forbid tobacco advertising

The offer of the government of Kirghizia on an absolute prohibition of advertising of tobacco has met with in means in weight of the information approval from outside of committee of parliament on social policy, informs "Interfax-Kazakhstan" referring to the parliament press-service. It is expected that respective alterations in the law “About advertising” will be accepted in the near future.
During performance at session of committee of parliament the head of Ministry of Health of Kirghizia Marat Mambetov has noticed that the given measure urged to reduce quantity of smoking inhabitants of the state. “Full it is locked on all forms of advertising in mass-media reduces social appeal of smoking and promotes decrease in consumption of tobacco products, especially among youth”, - he has declared. Thus the minister has paid attention to experience of other countries in this point in question. As he said, results of researches have shown that after input of the given interdiction in a number of the countries their population began to use for 25 percent of less cigarettes.
At the same time the agency notices that the interdiction for advertising of cigarettes can strongly be reflected in local mass-media. Now advertising of tobacco products for many mass media is one of the main sources of incomes.

I wanted a cigarette and blew

Transcarpathia in an accident with domestic use of gas, the investigation which is currently engaged in management Gosgorpromnadzora.

According to Alexander Góis, chief inspector gazotehnicheskogo, a resident of the village of Esen Uzhgorod district, Robert Laden hit the burn center of the regional clinical hospital with burns of the face and extremities of the second degree. Damages were obtained in gas explosion 12.10.2009 year, which occurred in the annexe to a private home.

The blast also damaged by the building. Life of Robert Laden is out of danger. The cause of the tragedy was a gas leak and the victim attempted to smoke, which triggered the explosion. The causes of leakage are examined by experts.

Fidel Castro's cigars were sold at auction

The traditional auction in Cuba, selling humidors for cigars, carried $ 703 000 to the organizers, despite the fact that there was no sign of the Cuban leader Castro lots.Humidors cigar, signed by Comandante Castro in 2006, were sold to an auction only $ 22 higher than this year.

The most expensive lot, which includes three humidors for cigars, 400 Cohibas cigars, Fidel who purchased before 1986, was sold for $ 356 224 to the Franco Spanish tobacco companies.

Thousands of guests from 60 countries gathered in the 9 th International Cigar Festival in Havana. Proceeds from the auction will be transferred to the needs of the Cuban health care.

Donetsk people are trying to accustom to the electronic cigarettes

Eternal cigarettes without smoke filter and tobacco - it is an invention offer donchanam American scientists.

Unique is not a cigarette paper, and plastic, and based on it - an electronic device. New - dealers said - does not contain harmful tar, reduces the costs of smoking, and then helps to get rid of the habit.
According to dealers, that cigarette smoking is allowed in kindergarten and in school, in the plane and bus. In order to set fire to it, do not need matches. But the main thing - say implementers - it is completely harmless.

At the manufacturer's site - comprehensive information about the invention. The creators say - new long been popular in Europe. However, in the Donetsk region leaflets and phone sales only appeared. In brochures and on the web page - the device and the principle of action. Electronic cigarette, according to the manufacturers, fully mimics normal. At the end of its glow, too - just electric - light provides a removable battery. Similarity of smoke creates steam, which arises from the device, the heated liquid. However, the main part of a cigarette - a removable cartridge, with or without nicotine.

Part of the film on electronic cigarettes: "You have a choice than to fill the cartridge - if you want to continue to smoke, then fill it with liquid nicotine, and if you want to quit, then fill it with liquid with a pleasant smell. The second method is better - you quit smoking. "

Price new items - more than a thousand hryvnia. Email Account is full of positive feedback from U.S. customers. We decided to check how react to overseas donchane invention. Driver Gregory - a smoker with a twenty-year experience. Electronic cigarette man does not want to even try.

Gregory - donchanin: "No, I do not want to try. Innovations always safely call. Pick up plus the smoke is there any radiation of electrons.

Such an innovation - not a universal way to quit smoking - say doctors. These cigarettes will help only in conjunction with a course of treatment of drug addiction. And if you simply replace the usual electronic cigarettes, a habit still remains.

Igor Kononenko - deputy chief physician of the regional drug addiction: "It is necessary not only to treat the dependence on nicotine. We must give a person strength to ensure that he threw. Physical strength, mental strength. "

Maybe in Europe, such cigarettes and smoking is allowed in airplanes, - agree in Donetsk police. But we have - they warn - for e-smoking even in the park fined. The law of Ukraine prolonged cigarette in public places is prohibited. The reason - the harm of nicotine to others. And the electronic cigarette contains this substance may well be.

Alexander Matsko - an employee of the regional police department: "There are adverse effects on others. Especially if there are chips and nicotine content, then it clearly falls under the law. "

Video From the regional representatives of the dealer electronic cigarettes declined. But privately reported - new cause of considerable interest. Every day, hundreds of them received calls. But so far, a month of work in the city, not a single cigarette or purchased, said TRC Union.

About cigarette

A cigarette ( French "small cigar, the cigar+-ette ) is a product consumed by smoking and made from cured leaf and fine-cut tobacco and reconstituted tobacco, often combined with other additives, then rolled or stuffed into a paper wrapped - cylinder (usually less than 120 mm in length and 10 mm in diameter).The use of tobacco in a cigarette has become increasingly popular during and after the Crimean War. This was helped by the development of varieties of tobacco, which are suitable for the use of cigarette. During World War I and World War II, were rationed cigarettes to the soldiers. In the second half of the 20th century, the adverse health effects of cigarettes began to become known and text-only health warnings became commonplace on cigarette packs.The United States and United Kingdom have not yet been implemented graphic warning labels for cigarette, which is considered a more efficient way to communicate to the public of the dangers of cigarette smoking. Canada, Australia and New Zealand, however, have both verbal warnings and graphic display of visual images, among other things, the harmful effects of tobacco use on the human body.Smoke has evolved over the conception, for example, that thin strips crosswise to travel "axis of smoking" (which are thus circles along the length of the cigarette) are alternate sections of paper thin and thick effective combustion to facilitate, when pulled, retard combustion and, when at rest. Synthetic filters remove particles of tar before it reaches the smoker.then rolled or stuffed in a paper-wrapped cylinder (usually less than 120 mm in length and 10 mm in diameter).

A BRIEF HISTORY OF CIGARETTES

There has never been a produce that is both loved and hated as much, or by so many people, as the cigarette. There are those who exalt its pleasures while others consider it evil and crusade to reduce its use and existence. It is not clear when the first “cigarette” was consumed, but it is reported that tobacco was smoked within the husk of a corn cob as early as 1518 in Mexico. While there are many definitions used to classify tobacco products as cigarettes, primarily for taxation principles, we will simply define them as finely shredded tobacco which is wrapped in paper, smoked, and inhaled for consumption. Roll-Your-Own (RYO) and Make-Your-Own (MYO) cigarettes refer to tobacco which is sold “loose” for the consumer to make their own cigarettes.

While it is not possible to date the first use or consumption of the cigarette, the industry would start to flourish after the 1830s when Virginia varietal tobacco agriculture was expanded to the inland Piedmont area of Virginia and North Carolina. Farmers moving west during the early 1800s discovered that the sandy, grayish soil in the Piedmont region produced a thinner, less heavy leaf that was lighter in flavor than previous cultivation. More specifically, the Flue-Curing process that was used on these Virginia varietals yielded a tobacco that was more acidic than its predecessors or counterparts. finally, the lighter flavor and aroma of the Virginia tobacco, coupled with its higher acidity made it ideal for inhalation. Paradoxically, the alkaline properties of stronger, darker tobaccos used for Cigars and Pipes made it not practical, if not impossible, to inhale. By 1864, a mild and light varietal of air-cured Burley, known as White Burley, was developed and was suitable for inhalation/cigarettes as well. Either through accident or coincidence these tobaccos emerged in time to help create a whole new economic and social force: the American Cigarette industry.

By the time of the Civil War, American soldiers determined the pleasures of rolling cigarettes from Bright tobaccos. This trend would give birth to the American Cigarette: a cigarette which is mostly comprised of Bright Virginia tobaccos. Another well-liked cigarette emerged during the 1800s from Oriental tobaccos grown-up in eastern Mediterranean countries: they are known as Turkish Cigarettes. While Oriental tobaccos are Sun-Cured and lower in nicotine content, they have a richer flavor and became popular for blending with Bright Virginia tobaccos. Consequently, during the 1800s, the two main families of cigarettes were born: American and Turkish. In addition, the blending of these different tobaccos, including Burley and Maryland, led to a assortment of cigarette products designed to suit a myriad of tastes and strength preferences.

During the first half of the twentieth century, mass-produced cigarettes became ubiquitous, cheap, and the ultimate pacifier for people coping with the challenges of the accelerating pace of life. Modernity and the cigarette were perfectly compatible. For a myriad of reasons, millions of people have sought comfort, solace, relaxation, and adrenaline from the cigarette. That people take pleasure from it is irrefutable. Through unparalleled print, radio, and television advertising, the cigarette industry sold adventure, sophistication, sexuality, and pleasure to consumers who voraciously inhaled it all. By 1950, almost half of the U.S. population smoked cigarettes, and many people believed it was a cleansing and healthy activity.

January 11, 1964, the Surgeon General publicly released the report that declared cigarette smoking to be a health hazard. Within a year the Federal Trade Commission (FTC) would mandate that all cigarette packs and advertisements be clearly marked with a health warning, known as the Surgeon General’s Warning. In 1998, after years of litigation between state courts and the cigarette industry, leading U.S. cigarette producers signed an agreement with the Attorneys General of 46 states, five U.S. territories, and the District of Columbia, known as the Master Settlement Agreement, or MSA. Previous agreements were already signed with the other 4 states. Collectively, these agreements are known as the state Tobacco Settlement Agreements, or TSA. While the TSA is a large and composite contract, the major principles are:

• Fundamental changes to the way cigarettes are advertised, marketed, and sold in the United States, with particular emphasis on protecting children.
• The creation and funding of the American Legacy Foundation, which is devoted to anti-smoking education and counter-advertising to the cigarette industry.
• Perpetual payments by the companies to the states (over $200 billion by 2025).

In exchange for agreeing to the TSA provisions, the states agreed to end civil litigation aimed at recouping healthcare costs associated with cigarette smoking. The TSA does not release participating manufacturers from civil claims from individuals, classes of individuals, or the federal government. Ultimately, the TSA has fundamentally changed the social and political landscape for the cigarette industry and consumers. Today, the industry is the most highly taxed and regulated commerce in America, and has the unique distinction of being the only industry legally required to fund its opposition.

At present about 25% of Americans smoke cigarettes. In much of the developing world smoking is on the rise, partly because it is still considered emblematic of advancement, fashionable, and attractive. On the other hand, anti-smoking laws are more prevalent today than ever before. The European Union and the United States are quickly moving towards being smoke-free societies. Smoking has been banned in most public and private places throughout the U.S.. Today, there is almost no place left to enjoy tobacco products. And all of this societal backlash against “smoke” is directly related to cigarettes and the health costs associated with their consumption. Of course there is also significant anger against the cigarette companies for shaping public perception to improve their own profitability.