Saturday 22nd August 2009

Timiocato is urging the governments of Fidelia, Nova Prosperitas and
Pacifica to adopt the same stringent standards on tobacco taxation, manufacture
and sale to lower cancer and disease rates, lower overall usage of tobacco and
try and clamp down on "border jumpers" who attempt to take advantage of cheaper
tobacco products while vacationing or travelling outside Pacitalia.
Timiocato urges Fidelia, NP, Pacifica to adopt same tobacco rules
Uniform standards will "lower cancer rates" and tobacco use, shut down "border jumpers"
Albertina Semperesta
Timiocato
Pacitalia's government is pressing its three Foringanan counterparts to adopt the same stringent standards on tobacco taxation, manufacture and sale in an attempt to both streamline regulations and lower disease rates and tobacco use across the continent. The move is also seen as a way for Timiocato to clamp down on "border jumpers" who regularly cross into Fidelia, Nova Prosperitas or Pacifica for cheaper tobacco products.
Adopting Pacitalian standards would result in a sea change across the continent, including packaging design and health warnings, sale and taxation, and import and export duties for both businesses and individuals, according to Pacitalia's agustinate of public health and wellness, Persefona Domasche. The changes, she says, will also trickle down and directly impact cancer and lung disease rates, "improving general health of Foringanans as it already has started to for Pacitalians".
"We want to cut down tobacco use," Ms Domasche said, "we aim to cut down cancer rates, lung disease rates, heart disease rates. We want to cut down dependency. Streamlining our laws across Foringana, making them uniform, will help us all in the long run."
She points to a 15-percent reduction in tobacco purchase and use in Pacitalia in just the last 12 months as a "key point" in judging the success and effectiveness of new legislation introduced last year. While this has reduced tax revenue by nearly Đ2.8–billion, it has also lowered immediate public health-care expenditures by Đ391–million, with a long-term cost savings projection of Đ17–billion over the next 10 years.
Also encouraging for Timiocato is that smoking among youths, aged 16-22 in Directorate of Public Health and Wellness analysis, is down by almost a third. Ms Domasche credits the sharp decreases to the government's graphic health warnings on tobacco packaging, saying the warnings are "scaring people into using common sense".
Pacitalia's Tobacco and Harmful Substances Control Act 2008 restricts tobacco manufacturers to:
- producing cigarettes for sale in maximum quantities of 25 per package (meaning "cartons" of up to 200 cigarettes are now illegal);
- exclude from the manufacturing process additives of any kind in tobacco products that would flavour or distort the product's actual ingredients and profile, which the government and health experts both argue makes tobacco products more appealing;
- tip all cigarettes with a standard cellulose acetate filter of no shorter than 25mm to lower tar intake by at least 80 percent;
- include a second filter treated with ionised sulphur oxide and a non-carcinogenic hydrocarbon called monoterpene. The second filter neutralises formaldehyde, hydrogen cyanide and benzopyrene(A), three toxic byproducts of cigarette smoke
Timiocato also mandates strict standards on packaging design:
- the product's logo and any other design may only appear on the top of the cigarette package and/or total no more than 10 percent of the total package surface;
- the front of each package is reserved for a graphic health warning which details one of 16 facts, displayed in both Pacitalian and English, about the dangers associated with tobacco use;
- a list of toxic ingredients contained in the product appear in clear and concise language on at least one lengthwise side of the package;
- the alternate lengthwise side of the packaging provides contact information for national or regionally specific quit-smoking and other health care and smoking assistance resources for Pacitalians; and,
- packaging must always be composed entirely of recycled, recyclable or biodegradable materials — usually foil and paper — and cannot contain any plastic wrapping or covering, coated paper or cardstrap, or any new paper or metal material of any kind
The Act builds on earlier legislation that banned advertising on television, radio or in print media and on billboards, and also prohibited cigarette smoking in all public places and facilities. The new Act also restricts smoking to a distance of at least 10 m from doors, windows that can be opened and air intake points. Smoking on the patio at a café or restaurant, in the presence of children under 16, or in a motor vehicle, is now also prohibited by law.
Businesses that sell tobacco must stock products behind opaque or metal cabinetry or in dispensers that release only the requested product to those legally able to purchase it. The law keeps tobacco products out of view at all times. Removing labels from "everyday eyesight", according to Ms Domasche, "will reduce awareness of different brands and, we hope, take out the impulse to smoke as potential new smokers will have no idea what to buy or what they are buying."
Timiocato wants all three of its continental counterparts to adopt the same standards as soon as possible and is lobbying officials in the Fidelian, Pacifican and Prosperitan capitals to make the changes into reality.
Pacitalia's landmark act, which became law last year, also empowers government, private not-for-profit agencies and both public- and private-scheme health providers to pursue harm reduction strategies, preventative work and rehabilitation of tobacco users.
Putting an end to "border jumping"
The Tobacco Act also slaps a 332-percent duty on all tobacco products brought through Pacitalian border checkpoints. The duty is calculated based on the douro's end-of-day exchange rate with the USD on the first day of the fiscal year, multiplied by 100. The douro closed at $3.3197 on 1st February 2009; thus, the duty for fiscal year 2009-10 is 332 percent.
The massive duty, Ms Domasche says, makes it "cost-prohibitive" to bring cheaper tobacco back across the border into Pacitalia. A pack of 20 "king-size" cigarettes in Pacitalia costs, on average, Đ4.06; thus, the imported pack could cost nearly Đ13.50 — over $45 NSD — after duties are applied.
Sebastiano Sigurimasso, Pacitalia's agustinate of finance and revenue — and the cabinet member responsible for the Republican Customs Authority — says the duty has been effective in stopping "border jumping", a practice where Pacitalians cross the border into the other three Foringanan nations intending to return with "suitcases and cars full" of cheaper tobacco products.
In contrast to tobacco, alcohol is cheapest, on average, in Pacitalia. Mr Sigurimasso confirms there has been no issue with "border jumping" with regards to alcohol products but notes that Prosperitans, Fidelians and Pacificans that cross the border into Pacitalia to buy cheap booze do not face similarly high duties on their purchases.
"We have noticed a drop in external border jumping as people realise it is not economically viable at the individual level to engage in this practice," Mr Sigurimasso says. "The duty has been extremely successful in curbing border jumping. The duty sends the message that no matter how or where you choose to engage in tobacco smoking you will be subject to some form of taxation."
"It is up to the end user to decide how much taxation they endure," he added.
That is because the simple purchase of tobacco here in Pacitalia is also not cheap — all tobacco is subject to a non-value added tax of 27 percent, which drives up the sticker price by an average Đ1.10. Timiocato is pressing Manhattan, Securitas and Georgetown to adopt the same non-VAT taxation on cigarettes and tobacco by the end of next year.
Pacitalia has tended to use non-VAT methods of taxation on tobacco because, as Ms Domasche says, "the psychological element tends to repel a significant amount of tobacco purchase because people are unsure exactly how much a pack is going to cost."
A spokesman for Artemis Republican, Pacitalia's largest tobacco company, refused to comment on "government matters". The company operates in all four countries and has extensively lobbied against further regulation on its products.
Copyright © 2009 Pacitalian Broadcasting Corporation
http://www.pbc.pc/news/foringana/80177079/






