This Philip Morris (PM) Corporate Affairs plan discusses the company's goals, objectives and strategies for achieving them during 1994-1996 in the areas of Eastern Europe, Middle East and Africa (EEMA).
One objective of PM's Corporate Affair plan was nothing short of "Stop the decline in, and start re-building to social acceptability of smokers and smoking in society." Reasons given for PM's concern about the declining social acceptability of smoking were the threat this situation posed to PM's profits, as well as the effect it had on the company's ability to recruit allies and influence government:
"While the ultimate threat is widespread public smoking bans...we also risk consumption decreases due to shrinking possibilities to smoke at the workplace as well as a deterioration of the social acceptability of smokers and smoking. With the lack of social acceptability, we will face further problems in ally-building and Government Relations work."
As part of its '94-96 plan on the secondhand smoke issue in this region, PM hoped to "...influence the setting of indoor air quality and ventilation standards."
PM also sought to take the focus of the secondhand smoke issue off of science and health: "The messages on ETS related issues will focus on solutions and accommodation, rather than on a scientific debate," and "We will encourage [Philip Morris Inc.] to initiate and fund research into the causes and consequences of social intolerance, aiming at broadening the political debate about bans / laws / tolerance in our societies."
The document also discusses PM's corporate activities on topics of excise taxes, fighting restrictions on advertising and sponsorship, strategies for corporate contributions and more, in the countries of Switzerland, Sweden, Norway, the Czech Republic, the Slovak Republic, Poland, Egypt, Denmark Austria, Hungary, Russia, Kazakhstan, the Gulf Council Countries (GCC), Baltic States and Syria.
Gulf Council Countries (GCC)
Amer, American Tobacco
Burson Marsteller (Tobacco industry PR firm)
This document is labeled "strictly confidential."
[From pages 1 and 2, Bates No.2500118564 and -8565]
...Counter-act attempts to restrict the company's right to produce and market cigarettes.
Work to preserve existing freedoms; develop and secure these fights in markets which are developing "first-time" legislation; and, achieve a sustainable relaxation of total restrictions in those countries where they currently exist...
Stop the decline in, and start re-building the social acceptability of smokers and smoking in society.
...Strengthen employee morale, enhance PM's Corporate image, and create a positive business environment for management throughout the Region.
[From page 14, Bates No. 2500118577]:
5.5 ETS Issues and Smoker Discrimination
ETS claims are rapidly becoming the major driving force behind anti-smoking activities in EEMA markets, and ETS-driven proposals for smoking bans and restrictions are no longer limited to the industdalised world. Public place smoking bans are in place in certain African and Middle Eastern countries and far-reaching work and public place smoking restrictions have been discussed in Turkey, Hungary,
Poland, Egypt and Lithuania. While severe workplace smoking restrictions have been defeated in markets like Sweden, the anti-smoking movement is re-focusing their attention on new markets, including Finland for restaurant and workplace smoking restrictions, Eastern Europe and also Northern Africa. The WHO appears to be focusing its efforts on Russia, Poland, Hungary, the Czech Republic, Slovakia and
The EPA classification of ETS as a "Class A carcinogen" in the US, was widely reported in the Region's media and will influence both the public debate on smoking issues as well as decision and policy makers throughout EEMA in the future. The possibility of litigation in this area (e.g. employees suing employers) also generates wide media interest (e.g. the recent case in the UK) and lead to similar litigation in EEMA markets. In Switzerland, this fear has led to the Central Federation of employees supporting smoking bans at workplaces.
While the ultimate threat is widespread public smoking bans, possibly driven by EC legislation, or global indoor air quality and ventilation standards that penalise
smoking, we also risk consumption decreases due to shrinking possibilities to smoke at the workplace as well as a deterioration of the social acceptability of smokers and smoking. With the lack of social acceptability, we will face further problems in ally-building and Government Relations work.
EEMA is in the forefront of moving toward political messages and solutions based on accommodation rather than focusing on the scientific debate. In the Nordic countries
free-standing smokers' rights groups have successfully joined the fight for reasonable smoking freedoms (e.g. by defeating a smoking ban on all European SAS flights).
Prevent legislation detrimental to smokers' rights in society; i.e. defend the rights of consumers to purchase, consume and receive information about cigarettes. Also, secure PM's (and the industry's) rights to participate as an
equal member of society in cultural events and the social debate...
...The messages on ETS related issues will focus on solutions and accommodation, rather than on a scientific debate.
[From Page 16, Bates No. 2500118579]
...EEMA is, together with PMI and PMCS, aiming at intensifying the work to influence the setting of indoor air quality and ventilation standards...
5.6 Smoking and Tobacco Industry Social Acceptability
A vast majority of anti-smoking measures have been made possible, directly or indirectly, due to the decline in the social acceptability of smoking and the tobacco
industry. Marketing conduct issues, the ETS misconceptions including the adverse publicity created by the US EPA issue, misinformation about tobacco and marketing
in the Third World and alleged sales to minors have been systematically used by the opponents of the industry to create a suspicion about tobacco related issues.
PM, and the tobacco industry in general, must find practical and long-lasting solutions to relations between smokers and non-smokers. This is not unrealistic,
especially not in the new and emerging markets where PM has made major investments.
- Philip Morris
- Philip Morris Corporate Affairs Department, presumed
- Philip Morris, presumed
Tobacco Industry public relations firm.
Covington & Burling (Tobacco Industry law firm)
Tobacco industry law firm. Was involved in organizing the Whitecoat Project.
*EPA ( use United States Environmental Protection Agency)
Estonian Health Authority
FTR, Fabriques de Tabac Reunies, (PM R&D facility in Neuchatel, Switzerland)
Fabriques de Tabac Reunies, Philip Morris Research and Development facility in Nuechatel, Switzerland. Many of the documents generated by this facility are in German or French language.
GCC Secretariat Health Finance + Customs
Intl Chamber of Commerce
Kraft Jacobs Suchard
Latvian Health Authority
Libertad (3rd party mouthpiece for PM)
Used to support freedom of commercial speech. Group that shares ideas with Philip Morris (e.g., freedom from government regulation) that Philip Morris supported as a third party ally to help push their agenda.
Miller Brewing Co. (Subsidiary of Philip Morris Co.)
Subsidiary of Philip Morris Co.
Ministry of Economy
Ministry of Finance + Customs
Ministry of Industry
National Manufacturers Association (Defense groups for cigarette companies worldwide)
In places around the world where these associations did not exist, the tobacco industry created them to help defeat public health efforts around tobacco.
Nordic Ferry Lines
Pmi, Philip Morris International
Sgc, Surgeon General's (Advisory) Comm
Tdc, Tobacco Documentation Centre
Tobacco Institute (Industry Trade Association)
The purpose of the Institute was to defeat legislation unfavorable to the industry, put a positive spin on the tobacco industry, bolster the industry's credibility with legislators and the public, and help maintain the controversy over "the primary issue" (the health issue).
Tobacco Growers Assn
UAE, United Arab Emirates
World Health Organization (Concerned with global public health)
International organization concered with public health worldwide
TypeREPT, REPORT, OTHER
Social Acceptability (Social acceptability of smoking)
The industry fought the decline in social acceptability of smoking through public relations campaigns, legislation, etc.
Corporate philanthropy (Company giving behavior)
The giving of money to causes by a company, usually in a manner that makes the company appear altruistic to the public. Corporate philanthropy is usually done to achieve public relations or political gains.
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TYP 1994-1996 - SGC, September 1993
E E M A REGIONAL CORPORATE AFFAIRS
1. MISSION STATEMENT
The Corporate Affairs department is responsible for optimising the existing as well as
obtainable resources within and outside the Corporation that can together positively
influence the operating environment (internally and externally) of the Corporation
and support the business objectives of the Region.
The biggest managerial challenge for CA will continue to be the extraordinary
geographic, cultural and political diversity of the Region. EEMA comprises 107
countries ranging from the highly sophisticated and mature markets of present EFTA
to the emerging free-market economies of Central & Eastern Europe; Turkey & the
Middle East; and the continent of Africa which, itself, contains huge diversity.
Local CA staff are already in place in many of the Region's key markets and new CA
units will be established as appropriate. However, HQ will have to continue to
provide "fire fighting" assistance to many markets as they gradually open up to us for
business. In addition, HQ will continue to provide support services for the Field CA
units particularly in those markets where the CA function and techniques are
relatively new and undeveloped (especially Central/Eastern Europe, longer-term also
North & sub-Saharan Africaa and the Levant), as well as on specific projects where
CA HQ has accumulated significant know-how.
The Objectives of EEMA Region Corporate Affairs can be summarised as
(i) Work with other HQ departments (principally Planning) and the Areas to
maintain or introduce reform of excise tax and import duty structures and
levels which are favourable to the Region's volume and income growth
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EEMA countries which are applying for EC Membership will have to adopt EC
tobacco tax law; the EC rules will also influence the tax policies of countries
which aspire to EC Membership; particularly Turkey and the Central European
nations. In emerging markets, e.g. Eastern Europe and Turkey, the fiscal
changes required and the opportunities for reform will often be linked with the mere privatization
processes. Elsewhere, i.e. the Middle East, North Africa
and Sub-Saharan Africa there exist a range of tax and fiscal issues which will
need constant review, attention and pro-active measures in order to both protect
and enhance our differing businesses in these areas.
(ii) Counter-act attempts to restrict the company's right to produce and
Work to preserve existing freedoms; develop and secure these rights in markets
which are developing "first-time" legislation; and, achieve a sustainable
relaxation of total restrictions in those countries where they currently exist.
The systematic attacks on the tobacco industry has forced PM to improve
monitoring and action readiness also on new issues, like the vast ingredients
(iii) Stop the decline in, and start re-building the social acceptability of smokers
and smoking in society.
Prevent legislation detrimental to smokers' rights in society; i.e. defend the
rights of consumers' to purchase, consume and receive information about
cigarettes. Also, secure PM's (and the industry's) rights to participate as an
equal member of society in cultural events and the social debate.
Significant results have been achieved in emerging markets thanks to early
engagements and locally relevant Cultural and Society programs. The internal
challenge continues to be pro-active work, sustainability and sensitivity for the
(iv) Strengthen employee morale, enhance PM's Corporate image, and create a
positive business environment for management throughout the Region.
Communicate information about the Company's business, policies and
contributions programmes to the employees and their families, the general
public and decision makers through internal communications channels, press
and public relations.
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(v) Provide HQ project-specific support as necessary to new / developing
Participate in PM EEMA's business efforts on all level requested, including
assisting in increasing PM's competitiveness in bids for newly privatised
(vi) Recruit and train CA staff for new markets.
The managerial Strategies for the CA function to achieve these objectives are:
In parallel, continue to develop ourGovernment Relations capabilities market
per market, including continuous CA training (e.g. argumentation,
spokesperson training) of PM management. Hire/keep on board top level fiscal
and political consultants and further increase the lateral co-operation with
expert units, especially Planning. On each key fiscal project in each key
EEMA market the local country/area manager should be an integrated part of
the CA project team and actively monitor events and pursue our objectives and
strategies at the local level.
More actively seek opportunities to communicate with key decision makers and
the media through well-trained and briefed PM or external spokespersons.
Sustain a pro-active media relations programme by building on the success of
the Nordic, Turkish and Czech programmes; exploit the huge interest in PM as
a(potential) investor in "new" markets. In co-ordination with PMI, ensure that
the positive news from the region is channelled into Corporate press releases,
Annual Reports, Reports to Shareholders, etc. as well as to EEMA journalists
resident in the US.
Further develop argumentation and messages on key issues to ensure that they
are factual, relevant, persuasive and interesting. Ensure that these "messages"
are accessible to and understood by our in-market management as well as our
employees. Find a discipline where by PM's combined size, relevance etc.
(e.g. as a purchaser of raw material, employer, etc.) in key markets can be
obtained and constantly updated.
Review and streamline the flow of information both internally (Weekly
Highlights, Corporate Publications; video material;) and externally (TDC; TI;
Press monitoring, etc.); develop a joint "Facts bank" with the Legal
Department and greater use of Information Technology in consultation with ICS
in order to provide CA staff with fast and reliable access to facts and
appropriate background documentation about the company, the industry and
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(v) Ensure that at least all major factories have a trained Community Relations
head to maximise the benefit of having PM manufacturing plants in
Switzerland, Turkey and Central and Eastern Europe. This will improve the
effectiveness of our pro-active Government and media relations programmes.
The role of senior management in Community Relations activities should be
Ensure more strategic and systematic use of existing CA "tools" such as access
to Corporate and branded sponsored events (also outside the Region); Corporate
sponsorship of organisations such as Libertad and the AECA; and Corporate
briefings to the financial analysts. Approach the dialogue and co-operation
with key suppliers systematically, as a part of theGovernment Relations
projects. Have ongoing information exchanges and develop alliances with allies
such as packaging raw material suppliers, distributors, HoReCA, etc.
Continue to build and support industry working groups, independent and
socially sound consumers' rights and tax-payers movements groups; and
establish effective PM and industry positions and solutions on all issues which
create conflict between smokers and non-smokers.
(viii) Develop relevant social and cultural contribution programmes, which are
carried out with sufficient frequency. Focus on encouraging local culture in the
various EEMA markets (including support for countries to "export" their
culture overseas) and ensure that philanthropic contributions are matched to
relevant social needs and respect local culture.
In cooperation with PMCS, KJS and PM Co. Corporate Affairs, find a format
for a less bureaucratic and more flexible contributions project planning process.
(ix) On all issues, where relevant, continue to develop ongoing relations with
affiliated PM companies in individual markets to enhance overall effectiveness
of CA programmes. Build further on the practical examples that have included
joint GR briefings, joint cultural/contributions with JS; joint media briefings
with KGFI (Norway; Lithuania).
Utilise PM's leverage as a major economic player by developing facts banks
about the global impact of the Corporation in key markets (in co-ordination
with the food and beer businesses).
(x) Strengthen internal communication systems to ensure that employees are kept
informed about Corporate news and policies; provide EEMA input to Corporate
newspaper and video; assist Areas with establishment of employee publications
in local languages in countries where we invest - such as the Czech Republic
A project with Legal and ICS has been initiated in 1993 to offer more accurate
and faster facts banks for our CA staff.
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(xi) Establish relevant working groups to monitor and deal with environmental and
ecological issues, including contingency planning and response training, in co-
ordination with S&T Neuchatel, PMCS, PMI, KGFI and Miller Brewing.
Continue to improve the ability of Corporate Affairs personnel to respond
effectively to all issues, by
on-going and relevant training programmes;
increasing headcount in key markets where necessary;
limited strengthening of HQ unit to provide support services particularly
to "new" CA markets with an emphasis on skills in taxation, ally-
building, communications, ETS and environmental issues;
further upgrading the daily lateral co-operation with other EEMA
departments, such as Legal, Marketing and Planning.
co-ordination with PMI, PMCS and other Regions and PM operating
(xiii) Timetable projection:
The hiring of in-market CA talent for new markets such as Russia should be
concluded in 1993. The in-market staff will be sufficiently trained in
Western/PM CA techniques towards the end of 1994.
Our efforts to create a more effective facts bank and information flow system
5 is critical to the efficiency of CA. The HQ part of the work will be ready
early 1994, whilst the in-market teams are not estimated to get access to our
Facts and Info Flow System (FIFS) before 1995.
The crucial build-up of a PMC "arguments bank" (including information about
raw material purchases, profits generated to allies such as HoReCa's, etc) will
need a global effort, presumably also outside resources. The initial work
should be done within 1994.
5. KEY ISSUES AND ACTION PLANS
5.1 Taxation and Fiscal Issues
The issues under this heading include tax structure, import duties and penal taxation.
Penal taxation can be expected to be driven not only by Government revenue
requirements in the wake of increasing budget deficits but also by pressure from
the Health Authorities using cost to society claims and the growing threat of
environmental claims. This will be especially true of the EFTA countries who have
the added alibi of EC tax alignment to rationalise any moves towards higher tax
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However a key issue in most, if not all markets, will be the tax structure for both
local and imported brands. Our objective, simply put, is to preserve specific taxation
in those markets where it predominates (Sweden, Switzerland, Norway, Czech and
Slovak Republics, Poland, Egypt, Denmark) and to push for a higher specific
component in countries with fully or mainly ad valorem tax (Austria, Turkey,
Bulgaria, Finland, Russia, Morocco). We will also defend fiscal structures that fairly
stimulate planned local investments and in every instance, we will work to minimise
the total tax burden on cigarettes.
The EFTA countries which have applied for EC membership, and/or will join the
EEA, will be guided and could be increasingly influenced by EC tax harmonisation.
Whilst the ECOFIN directive will be subject to review and possible change during
1994-1995 it will be a basis from which EFTA and to a lesser extent Eastern
European markets and Turkey will work.
Switzerland is likely to be a major target for tax increases over the plan period and
beyond. Today's incidence of 50% of RSP contrasts with an incidence of more than
70% in surrounding EC countries. Furthermore, there are growing signs that a
widening Federal Budget deficit will intensify the need for additional revenues from
In October 1992 the industry submitted a detailed and comprehensive paper to the
Ministry of Finance outlining the dangers of a rapid increase in the tax level and
arguing strongly for a maintenance of today's predominately specific regime. In light
of Switzerland adopting more and more EC legislation a detailed review of
alternative tax structures will be prepared for the authorities which would move
them more in line with EC practice whilst preserving mainly specific taxation.
After a long process of pressure from the industry led by PM, and in the face of
declining state revenues, the Government finally announced a change in the tax
system as of September lst 1992. A specific element of FIM 50 per 000 (US$ 8.5
per 000) was introduced into the previously fully ad valorem system. Whilst full EC
membership is not imminent, Finland almost satisfies the ECOFIN requirement on
tax incidence and structure already. However our clear objective is to push for an
increase in the specific to total tax ratio (currently 7%) towards the EC maximum of
55%. Importantly, we will push vigorously to retain and increase the current
minimum excise tax applied to cigarettes arguing that this is allowed under EC laws
and will ensure Government revenues and a healthy domestic industry. Finally since
VAT is well above EC norms we will argue for a reduction with a compensatory
adjustment to the excise tax. We will also strive to keep cigarettes in the basket of
goods used to measure consumer price inflation, as well as to decrease the tax gap
between RYO and manufactured cigarettes.
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Our key to success will highly depend on PM's control of AmerGovernment
The emergency budget package of October 1992 included a big increase in excise tax
levied on both snuff and RYO. The fiscal changes, effective December 1, 1992
which reflected intensive PM lobbying efforts, reduced the relative tax advantage of
STA's snuff and RYO products versus cigarettes. However, the increased total tax
level has made all tobacco products less affordable.
In light of Sweden probably joining the EC by the mid-to-late 1990s and therefore
realigning excise tax in line with ECOFIN, our objective is to argue for a gradual
derogation towards the required excise incidence of 57% and also for the continued
dominance of specific tax.
Given that Sweden will have to eliminate the weight tax classes and introduce an ad-
valorem component into today's fully specific regime, there is a clear need for
reform which we should pro-actively influence. The possibilities for success are
strongly linked to our local cooperation with Swedish Tobacco (ST).
As before, we will continue to work for annual rectification of the present imbalance
between cigarettes and RYO taxation and strive to preserve the fully specific excise
tax system for as long as it is practical. As Norway will have to accommodate
ECOFIN requirements as conditions of EC membership, we will lobby and argue
for a derogation in terms of the 57 % excise tax requirement whilst preserving the
predominance of specific taxation. As in Sweden we will argue for a VAT reduction
towards the EC minimum of 15 %.
Our Norwegian CA efforts are PM specific and very sensitive due to our opposing
strategic interest with the NMA member companies, e.g. Tiedemanns.
In the wake of the ECOFIN directive we have the opportunity to move today's fully
ad valorem system to one which incorporates a specific element. We plan to open up
a dialogue with ATW as a first step and demonstrate the benefits of a mixed system.
On July 5th 1993, in tandem with the implementation of a VAT system (at a rate of
22%), a four-tiered specific tax structure was introduced for an unspecified length of
time. This is a very favourable event in light of the fully ad valorem system formerly in
place and given that the proposed tax system previously under discussion in Parliament
would have included a complex mixed structure linked to usage of domestic tobacco in
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PM's objective will be to limit the overall incidence of taxation and to encourage the
maintenance of a predominantly specific tax structure. Whilst the newly adopted four-
tier system is not without it's problems, it does give PM a competitive advantage and we
will work to reduce the gaps between the tiers over time while also working to avoid a
linkage between tax incidence and the usage of domestic tobacco in cigarette
In addition we have to convince the authorities to tax tobacco rolls as cigarettes and not
as RYO and to strongly make the case against further increases in the import duty on
tobacco (currently 30%).
Czech & Slovak Republics
We have so far achieved our objective of maintaining the current specific structure and
to narrow the gap between the two tiers by raising the tax burden on 70mm products.
We will continue to work over the plan period to finally eliminate the tax difference
between 70mm and KS products. In addition PM will work towards securing the
implementation of a minimum specific import duty as well as the establishment of a
system of fiscal marks to stem the flow of contraband.
Our long-term strategy in the Czech Republic will be to capitalise on our positive
dialogue with MoF officials and key parliamentary committees to ensure we meet these
objectives whilst building up our contacts in the Slovak Republic.
Additionally, in Slovakia we will work jointly with SIT/Reemtsma to introduce
proposals to establish a fiscal markings system aimed at stemming the flow of
contraband and independently with the Ministry of Economy to mitigate the impact
of new customs duties between the Republics on our business in Slovakia.
PM's objective is to preserve the current mixed excise tax system, increasing the
proportion of specific tax and to ensure that any future tax increases are applied solely
to the specific component at a rate which does not exceed inflation. In addition, PM
will seek reductions in the current levels of import duties on tobacco leaf and the
introduction of a significant minimum specific import duty on finished cigarette
products. Finally, we have to convince the Ministry of Finance to tax tobacco rolls
on the same basis as cigarettes. (See Poland).
PM's strategy will continue to focus on mobilising support within the relevant Ministries
and among tobacco growers and other grass-roots organisations as well as targeted
MP's in support of its objectives. A key factor will be to cope, inGovernment Relations
terms, with the anticipated changes in the Hungarian political scene.
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The current excise tax system is fully ad-valorem based on the gross ex-factory price
and has three tiers depending on the class of cigarette. In addition a VAT of 20% is
applied to both imported and locally produced brands.
Imports are subject to a fairly modest import duty of 15% and the excise tax, whilst
attracting the highest rate within the three tier system, is applied to a much lower
base (i.e. C.I.F.) compared with locally produced brands. In effect, therefore, it is
currently more economic to import rather than locally manufacture premium priced
Our objective, given our short to mid-term reliance on the relatively profitable import
sector, is to re-structure the excise tax on locally produced brands without drawing
attention to the relatively favourable treatment of imports. Ideally, the three tiered
ad-valorem system should be replaced by a mixed system with a specific element
introduced for all filter brands. This is in line with our already successful proposal
for Lithuania and the one put forward in Kazakhstan.
We should strive to establish the appropriate starting dialogue within the Ministry of
Finance and the Russian State Tax Service and highlight the benefits of such a change
in the context of our local investments in Russia. A monumental Corporate Affairs
challenge is to run effective Corporate Affairs activities while avoiding the programs
being too personality-bound.
The tax systems for both locally produced and imported products are different and in
the case of local brands predominantly ad valorem. We started our tax change efforts
by presenting a detailed proposal to the Ministry of Finance and Customs (November
1992) which argues for a simplification and stream-lining of today's structures, a
higher ratio of specific tax on local brands and a system which moves Turkey more
in line with EC. With Turkey seemingly committed to Customs-Union with the EC
by end 1995 we are actively following up and updating our proposal on overall tax
Intermediate goals include the need to convince the Government to increase Tekel
consumer prices of oriental brands to economic and market driven levels, as well as
to postpone the planned phased reduction on cigarette import duties. We also need to
build a wider monitoring andGovernment Relations network in Ankara to secure
timely and accurate information about potential privatization plans for the state
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Our objectives and action plans remain as previously detailed: to delay any increase
in the duty level, especially in those states where duty remains at 30 %(Saudi,
Kuwait, UAE) and to argue for a high specific duty in all states. We will continue to
lobby vigorously with the GCC Secretariat, Health, Finance and Customs officials
and the USTR for a change in the duty structure while working with UAE officials to
delay the, eventually inevitable, duty increase and to insist that if such a increase
prevails it be accompanied by a high minimum specific duty.
We have been active both in convincing Eastern Tobacco and the Ministry of
Industry (responsible for the tobacco industry) of the merits of retaining today's fully
specific (two-tiered) cigarette tax system. With the probable introduction of VAT in
1994 we will lobby to maintain reasonable tax levels, the continuance of a two-tier
specific element and argue vigorously against any potential IMF proposals to
introduce an ad-valorem system. Further, we plan to monitor and maintain
protective import duties on finished cigarettes and be ready to argue against increases
in import duty rates on cut-filler and BBS.
5.2 Marketing Freedoms
PM EEMA is being strongly influenced by the outcome of the debate within the EC
Council about the proposed tobacco advertising ban in the EC. Individual EC
countries, notably France, have taken unilateral action at national level and
introduced a ban. Branded sponsorships as well as Cultural & Society Contributions
programmes, all essential in ourGovernment Relations work, have come into the risk
zone, as has the right for third parties to purchase and use tobacco trademarks in
other fields. EEMA also has the challenge of securing and maintaining relevant
marketing freedoms in Switzerland, Turkey, Austria, Egypt and in the emerging
markets in Central and Eastern Europe, as well as in the Baltic States. Future
challenges will also include gradual introductions of marketing possibilities in the
Levant, e.g. Syria.
Action Plans ( rioritYmarkets)
A popular initiative aiming for a total ban on tobacco advertising, and a Federal
counter project which would only allow point-of-sale advertising and corporate
contributions have been successfully defeated in Parliament and the matter will now
be put to a national referendum in either November of 1993 or Spring 1994. Our pro-
active approach included extensive lobbying of Members of Parliament and a nation-