понедельник, 29 марта 2010 г.

Anti-smoking squads hired as Hong Kong extends cigarette ban

Hong Kong - A team of nearly 100 anti-smoking officers is toenforce a new ban on cigarettes at outdoor public transport interchanges in Hong Kong, a government official said Monday.

Hong Kong, which has already banned smoking in many outdoor areas including public parks and sports venues, is to extend the ban to outdoor public transport interchanges before the end of the year.

A team of 99 tobacco control inspectors with the power to issue spot fines of 1,500 Hong Kong dollars (193 US dollars) is to enforce the ban, Tobacco Control Office chief Ronald Lam said.

The officers are to patrol 130 outdoor interchanges where bus and train networks meet to ensure the ban is observed, Lam told the South China Morning Post.

Hong Kong has one of the region's toughest anti-smoking laws with cigarettes banned in all bars, nightclubs, restaurants and mahjong parlours. Around 13 per cent of Hong Kong adults are reported to be smokers.

понедельник, 15 марта 2010 г.

Ontario Convenience Stores Association Launches Petition Drive

Last week, the Ontario Convenience Store Association (OCSA) launched a petition drive to dissuade the Ontario government from executing the harmonized sales tax (HST), which goes into effect July 1. Essentially, the HST will raise legal tobacco prices by 8 percent, driving down the price of illegal cigarettes even more.

With the illegal trade of cigarettes already accounting for almost 50 percent of all cigarettes purchased in Ontario, the OCSA has been trying to convince the government that raising HST is not an acceptable solution for the convenience store industry.

“This will likely only drive more consumers to the illegal market, thereby exacerbating the illegal trade problem in the province and putting our businesses a further risk,” said Dave Bryans, OCSA president. “After numerous meetings with government officials and politicians, and participation in pre-budget consultations, the OCSA continues to engage key staff in the Ministry of Revenue to help them address this problem. We now think it is time for your individual voices to be heard.”

The association is sending its members a petition for the Legislative Assembly and two postcards for the Ministers of Finance and Revenue. “We strongly encourage retailers to sign these three documents, so that the government can hear from people across the province,” said Bryans. “It is extremely important that our members fully participate in this initiative [because …] the government continues to not understand the impact the HST will have on the convenience store channel in Ontario and the contraband market.”

вторник, 9 марта 2010 г.

Bill takes aim at cigarette smugglers

A new law targeting cigarette smugglers has cleared both houses of the General Assembly and now goes to the governor for his signature.

The House of Delegates on Wednesday joined the Senate in unanimously passing Senate Bill 476, sponsored by Sen. John C. Watkins, R-Midlothian.

The bill would establish additional penalties for "any person who sells, purchases, transports, receives, or possesses unstamped cigarettes" in Virginia.

Cigarettes are stamped in most states to ensure that the tax on them has been paid. If a pack of cigarettes is sold in Virginia without a stamp, that means no tax has been paid to the commonwealth.

In Virginia, the tax on a pack of cigarettes is 30 cents. In South Carolina, the tax per pack is 7 cents, and that state doesn't stamp its cigarettes. Smugglers often purchase cigarettes in states with low tobacco taxes and sell them illegally in states with higher tobacco taxes, pocketing the difference as profit.

If Gov. Bob McDonnell signs SB 476 into law, first-time offenders would be charged $2.50 a pack, up to $500. For a second violation within 36 months, the fine would be $5 per pack, up to $1,000. And for a third violation, the penalty would be $10 per pack, up to $50,000.




If authorities determine that the violator had a willful intent to defraud the commonwealth, the penalty would be $25 a pack, up to $250,000.

On another tobacco-related issue, the House last week also gave final approval to SB 478, which would change the tax on moist snuff tobacco.

Currently, snuff is taxed at 10 percent of the manufacturer's sales price. Under SB 478, which was proposed by Watkins, the tax would be 18 cents an ounce.

The House voted 92-6 for the bill. It passed the Senate last month, 38-2. If McDonnell signs the bill, it would take effect on Jan. 1, 2011.

Bill Phelps, a spokesperson for the U.S. Smokeless Tobacco Co., said the bill would help both tobacco companies and the commonwealth. Phelps said it makes sense to change the tax on snuff to an excise tax, as Virginia taxes gasoline or beer. That way, the tax is based on the amount of the product sold, not the quality.

"We think that taxing moist tobacco by weight ... is a fair way to tax the product," Phelps said.

He said taxing snuff by the ounce will provide a more stable source of revenue for the commonwealth, because the price of snuff has gone down every year for the past six years.

понедельник, 1 марта 2010 г.

Smoker's Club finds niche

With a recent expansion of the business and an upcoming statewide ban on public smoking, the Smoker's Club of Mt. Pleasant is experiencing interesting times.

Owner Dave Sprunger loves his business and believes it is doing well.

"Our business stays afloat because a very large part of our business here is the make your own cigarette business," Sprunger said. "A lot of folks are making their own these days. They save a lot of tax money doing so and it's more economical to make your own."

The Smoker's Club also offers a chemical-free alternative to mainstream cigarettes; these contain none of the chemical additives that manufactured cigarettes do.

With people making a substantial savings as they roll their own cigarettes, it is easy to see why Sprunger's business is doing well. But with legislation to ban smoking in public areas, it is uncertain whether or not his business will be affected.

Sprunger, for one, does not think it will change anything.

"I don't think the smoking ban will affect my business," he said. "People generally buy their product here to take home and enjoy. I really don't think it will affect smoking. We are very fortunate that the current legislation that will go into effect May 1, we are exempt from. Folks are welcome to partake in smoking tobacco in any form here in the store, be it cigars, or hookah tobacco, cigarettes or pipe, whatever they like.

"...We are a retail store that derives more than 75 percent of our income from tobacco and tobacco-related sales, so folks can come in here and enjoy our new lounge and sit down and smoke a cigarette, pipe or cigar indoors like in the old days."

Sprunger's client base is quite diverse.

"I've literally had millionaires rubbing elbows with street people in my store," he said. "It's a very wide demographic. So we really cover all the spectrum of Mt. Pleasant."

Recently, as the unit next to him became available, he chose to expand the business adding a lounge and more storefront.

"The reason I chose this time to expand was really something we've meant to do for quite some time, but things are never right to do some things," he said. "The unit came open next door and I said 'It's now or never.' I couldn't take the chance of somebody else getting in there on a three- or five-year lease. So, we opened the lounge now for a few weeks and we're doing good."

The lounge is in the front window of the new addition and Sprunger also has two hookah lounges in the back that are still under development.

The Smoker's Club was founded in November of 1996 and was originally owned by Bruce Gardner. Sprunger came to work at the store in 1999 and he purchased the business from Gardner in January 2007.

"It's been a love for me. It's been kind of a lifelong dream," Sprunger said.

There's not exactly another retail tobacco smoke shop in the area to attract business, but there is competition.

"Liquor stores and gas stations are all selling tobacco these days, so yeah it's out there, but I'm the only true tobacco shop in the area," Sprunger said.

Even though his business is succeeding, Sprunger has experienced a slight slump in business. Other than that, he said, things are going quite well.

"Because we are an economic alternative to manufactured cigarettes, when the economy is troubled it does tend to send people our way because it's a good way to save a few bucks and still enjoy tobacco," he said.