Italian Tobacco Association Proposed Ban on Online Nicotine Sales

According to a report by Sigmagazine on September 18th, the three major tobacco associations in Italy presented several requests at a hearing in the Finance Committee of the Chamber of Deputies, the most important of which is to ban the online sale of products containing nicotine.

The hearing was led by Marco Osnato, Chair of the House Finance Committee.

The president of the Tobacco Merchants Association, Mario Antonelli, has proposed that in order to "protect the entire sales network," it should be ensured that tobacco shops exclusively sell products containing nicotine.

These recommendations are part of an investigation into the taxation and monopoly system of retail for tobacco products and new tobacco products. Before the end of this year, representatives from the e-cigarette association and related stakeholders will also attend a hearing to further discuss the significant differences between the operations of institutions in a free market and retail stores operated under a national franchise.

Demetrio Cuzzola, National Director of the Italian Tobacco Merchants' Alliance, stated that

The situation of tobacco shops is worrying. Recent data shows that tobacco sales have decreased from 1.2 billion kilograms 15 years ago to 610 million kilograms now, affecting the profits of other tobacco products. The income of tobacco merchants mainly relies on a 10% gross profit from product sales, a ratio that has remained unchanged since 1993. Tobacco merchants have tried to diversify their operations by offering services such as postal bill payment and phone recharging, but the profits from these services are negligible compared to the expenses. Additionally, the mandatory use of electronic payment terminals (POS) adds an additional 1% transaction cost, squeezing profits.

Kuzola calls for restrictions on e-cigarettes, stating that the European market lacks adequate legal regulations. The easy access to e-cigarettes through both European and non-European procurement channels has led to a proliferation of related websites, prompting the need to impose bans on such sites.

He also mentioned recommendations for the disposal of disposable e-cigarettes, stating that "Currently, electronic waste larger than 25 centimeters needs to be handled by stores with an area exceeding 400 square meters. As e-cigarettes are smaller, they should be classified as batteries and the city government should be responsible for their recycling and disposal.

The president of the Italian Tobacco Association, Gianfranco Labib Boughdady, stated that...

Anti-tobacco policies have led to a significant loss of customers and a decrease in sales of related products. We also face the challenge of recruiting non-EU employees, as current regulations do not allow us to hire residents from non-EU countries, which infringes on the rights of different ethnic citizens legally residing in Italy.

Finally, Anthony concluded his remarks.

We are the main association representing 48,000 tobacco shops. All nicotine products must be sold in tobacco shops, which not only affects national tax revenue but also consumer health. The illegal tobacco market is valued at around 1 billion euros, causing us to lose 120 million euros in revenue. The best way to protect tobacco shops is to ensure they have exclusive sales of nicotine products and to ban online sales.

The schedule for the next hearing may be decided tomorrow, with expected involvement from representatives of the e-cigarette Retail Association, manufacturers, distributors (ANAFE), and online stores (AIVE).