„Dimitrie Cupovski“ 13, 1000 Skopje +38923244000 ic@mchamber.mk
Following today’s statement by the Minister of Health, Azir Aliu, regarding the Draft Law on Protection from Smoking, the Cigarette Manufacturing Group and the Association of Tobacco and Tobacco Products Producers at the Economic Chamber of Macedonia—whose members include Philip Morris International, Imperial Brands, British American Tobacco, and Japan Tobacco International—express their deep concern and disappointment with the amended version of the proposed legislation submitted to them on 17 March by the Ministry of Health.
Despite the fact that throughout the entire drafting process our intention was to act constructively and cooperatively, and that we submitted analyses, proposals, and detailed comments in a timely manner—both collectively as a group and individually as companies—none of our substantiated remarks have been incorporated into the new version.
During this period, we deliberately refrained from media appearances, believing that our efforts should be directed toward a professional and constructive process with the institutions, through working meetings, technical discussions, and the sharing of international best practices, particularly in areas highlighted by the Ministry of Health itself as priorities: a strict framework for banning smoking in enclosed spaces and effective protection of minors from access to tobacco products.
Unfortunately, as a directly affected industry, our views and opinions have not been taken into account at all. The proposed text, while formally referring to public health objectives, in practice introduces disproportionate restrictions that undermine the legal operation of the industry and create serious consequences that will be felt very quickly. The text is misaligned with relevant regulations, in parts impractical, and excessively restrictive, with a direct negative impact on legal commercial activities. Although we support the goal of a strict framework for banning smoking in enclosed spaces and protecting youth, the proposed solutions will not achieve the desired public health outcomes.
More importantly, the proposed measures will not lead to a reduction in tobacco use, but rather encourage a shift toward the grey economy, which already accounts for 13–14% of the market, characterized by uncontrolled sales, unsafe products, cross-border supply, and significant losses to the state budget.
Our analyses indicate that excessive restrictions, compared to other examples, do not reduce smoking prevalence but instead lead to:
- An increase in the illegal trade of tobacco and nicotine products.
- Supply of products from neighboring countries with unverified quality, posing health risks due to products that do not undergo required safety and quality checks.
- A significant decline in budget revenues, alongside the growth of illegal trade and disruption of the entire value chain.
The tobacco sector represents a significant economic branch, encompassing agriculture, procurement, processing, industrial production, exports, the HoReCa sector, logistics, and over 5,000 retail outlets. Over the past five years, the state has collected more than €1.125 billion in excise revenues, while in the past year alone, approximately €350 million was generated from excise duties, customs, and taxes, and over €200 million from tobacco buy-outs.
Therefore, from the outset and still today, we raise the same fundamental question: Has the Ministry of Health, in drafting this law, incorporated a strategy for addressing the shift toward the illegal market, the reduced availability of legal products, and the broader economic consequences caused by declining budget revenues?
As a Group, we call on the Ministry of Health for genuine transparency, substantive inclusiveness, and regulatory solutions that are proportionate, applicable, and evidence-based, rather than measures that go beyond EU practices and directives, remain misaligned with other applicable legislation, and ultimately create more harm than benefit.
The member companies of this Group bring expertise from over 180 markets worldwide and remain fully prepared to contribute to a solution that will be effective, enforceable, and in the interest of public health, citizens, and the economy.