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European Bulletin
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EUROPEAN NEWS BULLETIN - EU9842 9th NOVEMBER 1998
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CONTENTS:
EUROPE: EU officials benefit from duty-free perks
EUROPE: SPECIFIC COUNTRIES
DENMARK: Anti-smoking organisation to focus on women
FRANCE: Mortality rates 1991-1996
NORWAY: Tiedemanss to be sued
SPAIN: Contraband tobacco discovered
SWEDEN: State revenues from tobacco taxation up
SWEDEN: Decline in illegal cigarette imports
SWEDEN: Swedish Match's results for Jan-Sept.
UK: BAT Lights up its profit but fails to warm investors
UK: Survey of the Nation's health
EUROPE:
EU officials benefit from duty-free perks
European Union Commissioners and other officials with diplomatic status will
still be entitled to duty-free goods, after the duty-free allowances are
ended for the general public in June 1999. This is because they are covered
by the 1961 Vienna Convention which allows them to take advantage of a range
of tax-free allowances. However, some officials, including the Transport
Commissioner, Mr Neil Kinnock, have said that they will not take advantage
of these allowances.
Source: The Times 6/11/98; International Herald Tribune 6/11/98; The Express
6/11/98; The Independent 6/11/98.
EUROPE: SPECIFIC COUNTRIES
DENMARK: Anti-smoking organisation to focus on women
TobaksskaderVdet, the Danish anti-smoking organisation, is to focus on
women's smoking habits in a book which will be published shortly. 37% of
Danish women smoke; this is the highest rate of female smokers in the
world. The psychologist Poul Tvaermose has studied up to 300 scientific
articles about women and smoking on behalf of the organisation. He says
there are several biological, psychological and social reasons behind the
high rate of female smokers in Denmark; the most important of which is that
women smoke in order to reduce negative feelings.
Source: Information Access Company, 24 Oct 1998
FRANCE: Mortality rates 1991-1996
The Public Health Committee has submitted its latest report on
mortality rates in France for the period from 1991-1996. It shows that the
mortality rate fell 6% between these two dates and that life
expectancy increased by eleven months to reach 74 years for men and 82
years for women. Mortality rates for lung cancer have slowed in men, but
are rising among women. The report recommends maintaining an active
policy of education and prevention for tobacco and alcohol. The death
rates due to cardiovascular disease are still the highest, but the rate
dropped by 2%. Deaths due to domestic accidents dropped by 14% and
deaths due to breast cancer have stabilised.
Source: Information Access Company, 26 Oct 1998
NORWAY: Tiedemanss to be sued
The Norwegian tobacco group Tiedemanns is to be sued by a 57-year old smoker.
Mr Asgeir Storvand started smoking 15-20 cigarettes a day in 1957, and
suffered three strokes between 1994 and 1995. He now accuses Tiedemanns of
being responsible for his ill health. The case could be a test case in
Norway, being the first of its kind, and is expected to go to the High Court.
Source: Information Access Company, 25/10/98
SPAIN: Contraband tobacco discovered
The Spanish Treasury has detected contraband cigarette activity in
Madrid, Andalucia, Cataluna and La Rioja worth Pta 4,000mn. In Coslada
(Madrid) a truck with 500,000 packs of cigarettes was apprehended. The
cigarettes were
originally for export, thus required no VAT payment, but were then sold on
the domestic market. It took the investigation authorities around four
months to disclose the organisation.
Source: Information Access Company, 24 Oct 1998
SWEDEN: State revenues from tobacco taxation up
The state revenues from tobacco taxation will not be reduced by as much as
was feared following the cut in tobacco tax. This is due to the fact that
the purchases of legal cigarettes have increased following the tobacco tax
cut. The loss from tobacco taxes is estimated at SEK100mn (US$12.6mn) vs.
the 400mn anticipated earlier. The state revenues from cigarette sales in
September amounted to around 590mn, which is about 100mn more than
estimated by the special tax office that deals with tobacco and alcohol
taxes. According to Philip Stenvall of the special tax office, the
forecasts for tobacco tax must now be revised upwards. He adds that border
trade from Norway also plays an important role as regards tobacco tax
revenues.
Source: Information Access Company, 27 Oct 1998
SWEDEN: Decline in illegal cigarette imports
Illegal imports of cigarettes into Sweden by post have
declined considerably since 1 July, when the Customs was allowed to open
mail packages which might contain tobacco or alcohol products. In July, the
Customs at Stockholm Airport found 1,218 packages with
cigarettes, in August the number declined to 260, and in September to 99.
The Customs at Helsingborg (southern Sweden) found 34 packages with tobacco
or alcohol in July, ten in August and two in September. Since the lowering
of the tobacco tax, consumption of legal cigarettes has increased. In
addition, Norwegians have increased their border trade.
Source: Information Access Company, 27 Oct 1998
SWEDEN: Swedish Match's results for Jan-Sept.
The Swedish tobacco and lighter manufacturer, Swedish Match, announced an
operating profit of 1.045 billion SEK (US$135 million) for the first
nine months
of 1998, down from 1.201 billion SEK for the corresponding period in 1997.
Sales increased by 8 percent to 6.037 million SEK.
Source: Information Access Company, 23 Oct 1998
UK: BAT Lights up its profit but fails to warm investors
Largely as result of higher cigarette prices in the US due to litigation
settlements and few price cuts on its core brands, British American Tobacco
(BAT) announced higher profits for the third quarter 1998, although
analysts are still concerned about trouble in emerging markets world-wide
and further litigation costs. The company warned that "deteriorating
trading conditions" in a number of countries including Russia and the
Ukraine, may have a greater effect on fourth quarter results than on the
third quarter. BAT's world volume in the cigarette industry reached 182.1bn
units from 181.4bn units, as volume rose 25% in Japan to 6.9bn units from
5.5bn units in the comparable 1997 period. US volumes dropped 12% and there
was little change in European volume.
Source: Wall Street Journal Europe (WSJ) 28 Oct 1998
UK: Survey of the Nation's health
The Office for National Statistics has announced the results of its 1997
Health Education Monitoring Survey in the UK. The survey compared drinking,
eating, smoking, drug use and exercise habits between 1996 and 1997, and
found there to be very little change.. Overall the number of adults smoking
in the UK remained unchanged: while some 3% of men and 2% of women
gave up over the year the same percentage of people took up the habit
during the same time. In terms of diet 17% of men and 22% of women claimed
to be eating less fatty food and more fruit and vegetables in 1997 than
they were in the previous year. During 1997 some 64% of women and 46% of
men claimed to be consuming within three units of their weekly alcohol
consumption in the previous year, and 75% of people that used drugs in 1996
continued to do so in 1997.
Source: Information Access Company, 17 Oct 1998
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