Monday, May 14, 2012
MBC supports tax reform on alcohol, tobacco
Makati Business Club (IBC) welcomes the initiative to reform the excise tax on tobacco and alcohol products, which allow the government to optimize their revenue potential and create a strong barrier to excessive use of tobacco and alcohol.
In a statement, MBC announced on Wednesday that they support the restructuring of the excise tax on the multilevel structure of the unitary structure of the excise tax on tobacco and alcohol. This will effectively raise equity through the cigarette and alcohol brands to promote market-based pricing in the industry and encourage the entry of legitimate competition. It also demonstrates its commitment to an open and fair competition and respect under international agreements.
MBC also said that he favored the elimination of the classification price freeze so the government has the right to charge a competitive rate of excise duty on tobacco and alcohol products.
"The current system undermines the tax base, the cost of the Philippine government a significant amount of lost revenue. To address this loophole, we urge lawmakers to increase the excise tax and the burden of tobacco and alcohol products, taking into account inflation in the year, to adequately reflect the negative externalities of consumption of these products" , a business group added.
Furthermore, MBC joins the medical community, expressing concern over the increasing number of smokers among the youth of the country, the majority of preventable deaths and disability from smoking-related diseases, as well as the fact that in the Philippines, the 15th-largest market for tobacco in the world with one of the lowest tobacco taxes.
He said that the shortcomings of the tax structure governing tobacco and alcohol products allowed the abuse of their consumption, but failed to curb the growth of new smokers and drinkers, particularly among young people and the poor. MBC also said that a society which bears the burden, as evidenced by the annual increase in economic and productivity losses associated with excessive alcohol consumption and smoking.
In response to the concerns of some sectors ", resulting in higher prices for tobacco and alcohol products would stimulate the black market, MBC, and urged the government to further strengthen its campaign against smuggling and trafficking in illicit goods.
"We firmly believe that strict compliance with customs laws and regulations, as well as effective fight against corruption in the customs and border controls are still key elements in winning the war against smuggling. Fear does work, but it should not interfere with the proper administration of government stakes excise tax, should not that be an excuse to nurture anti-competitive policies and practices, "the business group said.
MBC encourages the Government to use part of the additional revenue from excise taxes for promotional and educational activities about the dangers of smoking and alcohol consumption, and allocate a significant part of his Filipino health programs.
In addition, the Business Group encourages the Government to expand its technical and financial assistance to farmers Filipinos.
Monday, May 7, 2012
E-cigarettes lights up a growing market
Among the forgeries, a manufacturer of electronic cigarette lights up a growing market
Great Awakening Steve Milin occurred one day in September 2008. Life-long chain smoker whose parents died of smoking-related causes, Mr. Milin looked at the trash and cigarette butts found four packs of cigarettes. What shook him was the math: Purchase five packs a day, plus medications, smoking-related problems cost him $ 30,000 a year. "I knew that I die not only from my smoking," he says, "I was actually paying to kill yourself."
Eight months later, Mr. Milin started Vapor4Life LLC Northbrook-based distributor of "personal vaporizer e-cigarettes." He was initially put in $ 30,000 from savings, but more than three times their investment, as he explored the suppliers in China and the U.S., sales at its site is now up to $ 10 million a year, he says, and employment jumped to 40 with four. The company is profitable, he adds.
E-cigarettes were invented by a pharmacist in China in 2003 as a tobacco-free alternative to conventional cigarettes. The device consists of a thin metal cartridge contains a battery. Inside the coil heater "cartomizer" approved by the FDA turns a liquid into a vapor. Users or "vapers" inhaling aromatic vapors as if they were smoking, but there is no smoke, no carcinogens. There is nicotine in the juices, however, at levels set by the user.
The electronic cigarette market is highly competitive. So many imitators popped up was that Mr. Milin was forced to fend off imitation flattery, selling their product as the original pair of the King.
What distinguishes one from another, Mr. Milin his well-stocked website, where you can buy dozens of flavors of vapers toffee, pancake, and Margaret with menthol, cherry and vanilla, mocha ice. Starter Kits, which include battery, charger, case and electronic cigarettes, cost $ 49.95 to $ 105.
He said that he had bought and tried 600 different products before they come up with their device, which, unlike others, did not require a bottle of juice or a backup battery. It uses the same battery manufacturers like Apple, in China, where he spent six months in the modernization of its production last year.
Mr. Milin, 53, a graduate of Agricultural Economics from the University of Wisconsin-Madison, has sold almost all his career, jewelry, high quality audio equipment, mortgages, and stocks. While still a teenager, he says, he even helped to sell the Florida swamps in the boiler room, which became the inspiration for David Mamet's "Glengarry Glen Ross."
Bill Godshaw, executive director of tobacco smoke in Pittsburgh, Pennsylvania, welcomed the product, Mr. Milin. "The anti-smoking activist, I have worked to ban smoking for 25 years, and the problem is that the core of the 33 million daily smokers in need of help," he says. "E-cigarettes are a good substitute."
Mr. Milin switched to full-time vaping a few weeks after his "trash now." His last two Kool cigarettes are now framed in his office.
Tuesday, April 17, 2012
Say "no" to tobacco
On the one hand, where smoking is a style statement for young people these days, the younger generation has also become aware of the ill effects of tobacco.
To show its concern in relation to the case of children from 12 schools in Delhi gathered at the Naval Public School, Chanakyapuri and displayed handmade posters. Winning posters will be presented at the WHO on World No Tobacco Day 2012 on May 31.
Strive to mark World No Tobacco Day in an unconventional style was organized by the Indian Cancer Society (ICS), where the children participated in the poster contest and do a parody on "The tobacco industry interference.
These competitions were recognized Dr. Damodar Bachani (Head of Community Medicine, Lady Harding Medical College), Vineet Gill Munish (WHO Consultant on Tobacco Control), Mira Aghi (Terry Luther medal winner), Amal Pusp (Director, Department of Health and FW) and social worker Usha Jain. Although the results are expected, the students enjoyed being part of the celebration, which spread the message.
Out of the winning team NC Jindal Public School, Akshay Kapoor, Std XII student together, "Our parody was based on students who believe that smoking is cool and make them understand that it is not. We also tried to focus on children forced to smoke peer "slogan printed on their team shirts". If you can not quit smoking, cancer, "attracted the attention and appreciation to all.
Sunita Gupta, coordinator of the event, the Indian Cancer Society informed Metrolife, the cause of the organization as a parody on the essay contest: "We have been organizing an essay in 15 years. But in the last six years we have been a parody of competition, because we realized that the message sent through the skits had more influence on the minds of children who are our future ambassadors. So we decided to disseminate information to children and prevent them from falling victim to tobacco. " A similar view is shared by Jyotsna Govil, Secretary, Indian Cancer Society, "It is essential that young children are active.
It is important for young people to understand the techniques of the tobacco industry, and beware of falling into the trap of addiction. "
The children present on the occasion of the terrible facts of color, such as tobacco causes five lakh cases of lung cancer and oral cavity every year, and this increase is fueled by the insidious policy of the tobacco industry interference in policy-making. No other product has been so successful selling of death and disease, when used as its manufacturer intended.
To show its concern in relation to the case of children from 12 schools in Delhi gathered at the Naval Public School, Chanakyapuri and displayed handmade posters. Winning posters will be presented at the WHO on World No Tobacco Day 2012 on May 31.
Strive to mark World No Tobacco Day in an unconventional style was organized by the Indian Cancer Society (ICS), where the children participated in the poster contest and do a parody on "The tobacco industry interference.
These competitions were recognized Dr. Damodar Bachani (Head of Community Medicine, Lady Harding Medical College), Vineet Gill Munish (WHO Consultant on Tobacco Control), Mira Aghi (Terry Luther medal winner), Amal Pusp (Director, Department of Health and FW) and social worker Usha Jain. Although the results are expected, the students enjoyed being part of the celebration, which spread the message.
Out of the winning team NC Jindal Public School, Akshay Kapoor, Std XII student together, "Our parody was based on students who believe that smoking is cool and make them understand that it is not. We also tried to focus on children forced to smoke peer "slogan printed on their team shirts". If you can not quit smoking, cancer, "attracted the attention and appreciation to all.
Sunita Gupta, coordinator of the event, the Indian Cancer Society informed Metrolife, the cause of the organization as a parody on the essay contest: "We have been organizing an essay in 15 years. But in the last six years we have been a parody of competition, because we realized that the message sent through the skits had more influence on the minds of children who are our future ambassadors. So we decided to disseminate information to children and prevent them from falling victim to tobacco. " A similar view is shared by Jyotsna Govil, Secretary, Indian Cancer Society, "It is essential that young children are active.
It is important for young people to understand the techniques of the tobacco industry, and beware of falling into the trap of addiction. "
The children present on the occasion of the terrible facts of color, such as tobacco causes five lakh cases of lung cancer and oral cavity every year, and this increase is fueled by the insidious policy of the tobacco industry interference in policy-making. No other product has been so successful selling of death and disease, when used as its manufacturer intended.
Monday, April 9, 2012
Roll-your own cigarette stores, facing an expensive legal
Roll-your own cigarettes stores are alert throughout the United States, and the bill could hurt those businesses in Louisiana.
Measures in the United States in respect of stores - which allow customers to buy tobacco, cigarette tubes and time machines, capable of rolling 200 cigarettes in 10 minutes - were legal and powered by the court. The fight involves health and safety issues, but the authorities and business owners say it comes down to tax revenues.
Louisiana House Bill 1170 would require retailers who offer access to mills using only roll your own (RYO) tobacco approved by the Office of the Attorney General of Louisiana. It will also require pipes are used for cigarettes to be made of paper is determined by the State Fire Marshal.
"If it passes, our costs will increase, no doubt," Local RYO Cigarette Smoke 4 Less Shop Partner Aaron said Tatum. "Will it increase them enough to be subject to the ban remains to be seen?"
The bill was written to replace the other law repealed earlier this year.
If passed, HB 488 would amend the law of Louisiana to include shops RYO cigarettes under the definition of cigarette manufacturers. Louisiana RYO store owners believe that this reclassification would significantly close them because of their small businesses do not have the strength and resources to adhere to strict regulations on manufacturers.
Rep. Bob Louisiana Hensgens, author of HB 488 and HB 1170, did not return phone calls requesting information about the accounts.
"In some countries were more aggressive actions against the deployment of its own stores, because they are losing real money," said Louisiana Office of Alcohol and Tobacco Agent Jedd Faulk. "In Louisiana, we are closer to revenue neutral, so you do not see the action of the court and seize vehicles."
Office of the Attorney General of Louisiana refused to comment on this story because of the pending legislation.
New York lawyers have filed a lawsuit this year against dozens of shops RYO claiming that they had evaded paying tax rates of pipe tobacco.
In Arizona and Washington state legislatures propose to revise the bills RYO stores manufacturers.
On Friday, Kansas Fire Department was closed for about 20 Cigarette retailers in the state, citing a fire out of the car.
Tax question
Customers can leave the store RYO of cigarettes for half the price of a normal purchase. RYO cigarette stores are able to do this is partly due to the federal tax loophole, depending on the type of tobacco sold.
At the federal level, "the amount of tobacco smoking", packaged for use in the cigarette-rolling is taxed at a rate of $ 24.74 per pound. The same tobacco for use in a pipe or a cigar - and sold in stores Cigarette - is taxed at a rate of $ 2.83 per pound.
"The intention to use is the determining factor," said Falk. "
Taxation of tobacco depends on the state of the state. In Louisiana, bulk tobacco is taxed at 33 percent of the account, regardless of its use are labeled. This figure puts Louisiana close to the other states; income is the difference comes from a small pink mark on the bottom of a pack of cigarettes.
Each cigarette in Louisiana, is taxed at 0.018 cents, and the law requires cigarettes sold in packages of at least 20. Pink punch is equivalent to about 36 cents of state income tax from wholesalers in Louisiana Department of Revenue, or about $ 3.60 per carton - one of the lowest tax rates in the country.
Tatum said that it takes eight ounces of tobacco to build a box with their machines.
He said he pays about $ 60 for a five pound bag of tobacco equal to $ 19.80 in state tax revenues. This is equivalent to $ 1.98 in state excise tax per carton.
For comparison, Ohio cigarette tax stamps to ensure state revenue of $ 1.25 each, or $ 12.50 per box. Bulk tobacco is taxed at 17 percent of the bill.
In Ohio, RYO store, the same $ 60 five-pound bag of bulk tobacco is sold in Louisiana will generate $ 10.20 in state tax revenue - $ 1.02 per box.
"This earnings gap, where you will see a difference in how the state responds to the question," said Falk. "With the $ 11 gap, as Ohio State is much more likely to appeal to the courts and closing stores because they want the income now."
In addition to issues of taxation is the story of small businesses to corporate giants, Tatum said.
"This is a David and Goliath story," said Tatum. "People were rolling their cigarettes for good. Businesses like ours saw an opportunity to provide services, offering our cars with people, and big tobacco and convenience stores see us as a threat to their profits. So they close the reserve rule us."
Large corporations and the tobacco-shop chain is actively lobbying state and federal legislatures to regulate more strictly RYO shops.
"More regulation always means more spending," said Tatum. "If our costs increase, the cost of customers grows, and we lose our edge."
He and his partners have been successful in the Shreveport-Bossier, as they opened about a year ago, and Tatum said that they would like to open more stores in the area, but the bill can not take that risk.
"We pay all the taxes that we sell. We are absolutely playing by the rules, "said Tatum." Of course, tax laws are beneficial to us, but if you take it is not profitable to do what we do. We would have to shut down. "
Measures in the United States in respect of stores - which allow customers to buy tobacco, cigarette tubes and time machines, capable of rolling 200 cigarettes in 10 minutes - were legal and powered by the court. The fight involves health and safety issues, but the authorities and business owners say it comes down to tax revenues.
Louisiana House Bill 1170 would require retailers who offer access to mills using only roll your own (RYO) tobacco approved by the Office of the Attorney General of Louisiana. It will also require pipes are used for cigarettes to be made of paper is determined by the State Fire Marshal.
"If it passes, our costs will increase, no doubt," Local RYO Cigarette Smoke 4 Less Shop Partner Aaron said Tatum. "Will it increase them enough to be subject to the ban remains to be seen?"
The bill was written to replace the other law repealed earlier this year.
If passed, HB 488 would amend the law of Louisiana to include shops RYO cigarettes under the definition of cigarette manufacturers. Louisiana RYO store owners believe that this reclassification would significantly close them because of their small businesses do not have the strength and resources to adhere to strict regulations on manufacturers.
Rep. Bob Louisiana Hensgens, author of HB 488 and HB 1170, did not return phone calls requesting information about the accounts.
"In some countries were more aggressive actions against the deployment of its own stores, because they are losing real money," said Louisiana Office of Alcohol and Tobacco Agent Jedd Faulk. "In Louisiana, we are closer to revenue neutral, so you do not see the action of the court and seize vehicles."
Office of the Attorney General of Louisiana refused to comment on this story because of the pending legislation.
New York lawyers have filed a lawsuit this year against dozens of shops RYO claiming that they had evaded paying tax rates of pipe tobacco.
In Arizona and Washington state legislatures propose to revise the bills RYO stores manufacturers.
On Friday, Kansas Fire Department was closed for about 20 Cigarette retailers in the state, citing a fire out of the car.
Tax question
Customers can leave the store RYO of cigarettes for half the price of a normal purchase. RYO cigarette stores are able to do this is partly due to the federal tax loophole, depending on the type of tobacco sold.
At the federal level, "the amount of tobacco smoking", packaged for use in the cigarette-rolling is taxed at a rate of $ 24.74 per pound. The same tobacco for use in a pipe or a cigar - and sold in stores Cigarette - is taxed at a rate of $ 2.83 per pound.
"The intention to use is the determining factor," said Falk. "
Taxation of tobacco depends on the state of the state. In Louisiana, bulk tobacco is taxed at 33 percent of the account, regardless of its use are labeled. This figure puts Louisiana close to the other states; income is the difference comes from a small pink mark on the bottom of a pack of cigarettes.
Each cigarette in Louisiana, is taxed at 0.018 cents, and the law requires cigarettes sold in packages of at least 20. Pink punch is equivalent to about 36 cents of state income tax from wholesalers in Louisiana Department of Revenue, or about $ 3.60 per carton - one of the lowest tax rates in the country.
Tatum said that it takes eight ounces of tobacco to build a box with their machines.
He said he pays about $ 60 for a five pound bag of tobacco equal to $ 19.80 in state tax revenues. This is equivalent to $ 1.98 in state excise tax per carton.
For comparison, Ohio cigarette tax stamps to ensure state revenue of $ 1.25 each, or $ 12.50 per box. Bulk tobacco is taxed at 17 percent of the bill.
In Ohio, RYO store, the same $ 60 five-pound bag of bulk tobacco is sold in Louisiana will generate $ 10.20 in state tax revenue - $ 1.02 per box.
"This earnings gap, where you will see a difference in how the state responds to the question," said Falk. "With the $ 11 gap, as Ohio State is much more likely to appeal to the courts and closing stores because they want the income now."
In addition to issues of taxation is the story of small businesses to corporate giants, Tatum said.
"This is a David and Goliath story," said Tatum. "People were rolling their cigarettes for good. Businesses like ours saw an opportunity to provide services, offering our cars with people, and big tobacco and convenience stores see us as a threat to their profits. So they close the reserve rule us."
Large corporations and the tobacco-shop chain is actively lobbying state and federal legislatures to regulate more strictly RYO shops.
"More regulation always means more spending," said Tatum. "If our costs increase, the cost of customers grows, and we lose our edge."
He and his partners have been successful in the Shreveport-Bossier, as they opened about a year ago, and Tatum said that they would like to open more stores in the area, but the bill can not take that risk.
"We pay all the taxes that we sell. We are absolutely playing by the rules, "said Tatum." Of course, tax laws are beneficial to us, but if you take it is not profitable to do what we do. We would have to shut down. "
Subscribe to:
Posts (Atom)