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(“PMI”) (NYSE / Euronext Paris: PM) on Dec. 5 submitted a Modified Risk Tobacco Product (MRTP) application for its electronically heated tobacco product with the U.S. Food and Drug Administration’s (FDA) Center for Tobacco Products. This is consistent with the company’s stated goal of submitting its MRTP application in 2016. PMI anticipates the FDA taking a minimum of 60 days to complete an administrative review to determine whether to accept the application for substantive review. Philip Morris International Inc. (PMI) is the world’s leading international tobacco company, with six of the world's top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the development and commercialization of Reduced-Risk Products (“RRPs”). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes.
Malaysia achieved its budget deficit target of around 3% despite billion-dollar losses in oil revenue. Together with cost-cutting measures, sin tax made up for any shortfalls in revenue. The cigarette industry holds the second place in terms of total excise collection, which contributes significantly to indirect tax ( 22.9% of the 2017 Federal Governmental budget). Additionally, the government has failed to control its illegal cigarette trade. The responsibility of clamping down on illicit cigarette trade falls on the shoulders of Royal Malaysian Customs Department (RMC). RMC failed to meet its aim of cutting illegal cigarette consumption to 25% by 2015 . This year, Subromaniam said , “The department aims to reduce the number of contraband cigarettes in the domestic market by 50 per cent in two years, but we are confident we can do better.” This confidence came with a call for harsher policy changes. Instead of fines up to 20 times the value of the contraband cigarettes or a maximum of three years jail term or both , the Customs Department has proposed a change to Section 135 (1) (d) of the Customs Act 1967. The proposed amendment would enforce an increase in minimum cigarette or liquor fine to RM100,000 (US$24,000). As the government stays focused on policy writing, the nation will have to suffer the repercussions for a longer time. Malaysia has set out big dreams for a smoke-free nation by 2045 and a reduction in smoking prevalence to 15% by the year 2025.
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Sri Lanka hasn’t seen any evidence of an increase in the market share of beedis as imports of tendu leaf haven’t climbed, said Palitha Abeykoon, chairman of the National Authority on Tobacco and Alcohol. Tighter regulations on the beedi segment are being considered, he said. The authority estimates market share using surveys that are based on prevalence of use and not stick count. The government statistics are based on officially imported tendu leaves, according to Ridley. Since there has been evidence of a local source of tendu leaves as well as seizures of smuggled tendu leaves, these are “additional components” that need to be included in the calculation, she said. Some smokers of Capstan cigarettes, the company’s lowest-priced brand, have cut back on the number of sticks they buy after the price increases and also purchase beedis, said K.K. Badra, 58. She runs a kiosk that sells soft drinks, packaged snacks and other food items apart from tobacco products in Maligawatta, a Colombo suburb. Ceylon Tobacco is looking to contain the impact from higher levies. It has shut some of its leaf depots and reduced factory shifts to curb costs. To sustain profitability it’s working on “smart cost management, streamlining processes, identifying consumer segments and addressing their needs,” said Ridley.
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