Health Authorities Push Through Taxation Guidelines Behind Closed Doors at Moscow WHO Summit

Geneva (ots/PRNewswire) -

"An Alarming Attempt to Erode Countries' Sovereignty on Taxation
Policies"

Yesterday at the WHO FCTC's Conference of the Parties (COP6) in
Moscow, guidelines on price and tax measures (Article 6) were
hurriedly adopted behind closed doors, further demonstrating the
FCTC's habit of infringing on issues of national sovereignty.

(Logo: http://photos.prnewswire.com/prnh/20130528/617491 )

"Public health authorities are not fiscal experts", said Michiel
Reerink, Global Regulatory Strategy Vice President at JTI (Japan
Tobacco International). "Yet, one-size-fits-all decisions were rushed
in the absence of a vast majority of governments' taxation experts,
who should have the last say on their individual fiscal policies".

The COP has once again shown a complete lack of respect for
several Parties by blatantly ignoring their wish to express their
reservations on the guidelines, particularly regarding the minimum
benchmark tax of 70% and the allocation of tax revenues to finance
tobacco control programs[1]. Two years ago, at COP5 in Seoul, Korea,
Parties adamantly opposed the same recommendations. Despite this, the
draft guidelines remained largely unchanged and were nevertheless
adopted at record speed.

"While the guidelines are not binding for governments, Ministries
of Finance will be under pressure to adopt them in their national
law. Yesterday's decision not only represents an alarming attempt to
erode countries' sovereignty on taxation policies, but also violates
COP6's own requirement to make 'every effort' to reach agreement by
consensus", added Mr. Reerink.

--------------------------------------------------

1. The FCTC's October 15, 2014 Journal stated: "Several parties
wanted to record their reservations concerning the footnote related
to section 3.2 stressing their sovereign right to develop their
taxation policies. The draft decision contained in FCTC/COP/6/A/Conf.
Paper No. 5 was approved without amendment. The agenda item was then
closed."

When making decisions on tobacco tax policies, countries take into
account a number of considerations: income growth developments, the
impact of price increases on the affordability of tobacco products,
the existence of illegal trade (and tax authorities' ability to
enforce compliance), inflation and regional sensitivities such as
cross-border trade.

"Tax experts around the world recognize that ignoring these
considerations is counterproductive and could lead to serious
consequences, including a major increase in illegal trade, depriving
governments of important tax revenues and undermining other
government policy objectives - including public health," Mr. Reerink
concluded.

During the October 15 vote on FCTC's Article 6, the public and the
media were once again locked-out from proceedings. This move,
combined with the last minute decision to cancel press briefings,
further confirms the WHO's lack of transparency, accountability and
integrity.

JTI, a member of the Japan Tobacco Group of Companies, is a
leading international tobacco manufacturer. It markets world-renowned
brands such as Camel, Winston and Mevius (Mild Seven). Other global
brands include Benson & Hedges, Silk Cut, Sobranie, Glamour and LD.
With headquarters in Geneva, Switzerland, and about 27,000 employees
worldwide, JTI has operations in more than 120 countries. Its core
revenue in the fiscal year ended December 31, 2013, was USD 12.3
billion. For more information, visit http://www.jti.com.

Photo:
http://photos.prnewswire.com/prnh/20130528/617491

ots Originaltext: JTI (Japan Tobacco International)
Im Internet recherchierbar: http://www.presseportal.de

Contact:
For further information, please contact: JTI Press Office, Tel:
+41-22-703-0291, pressoffice@jti.com