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Tobacco industry has sights set on Indonesia, says expert

May 7th, 2015
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http://www.thejakartapost.com/news/2015/05/07/tobacco-industry-has-sights-set-indonesia-says-expert.html

A professor of public health at the University of Indonesia’s School of Public Health, Hasbullah Thabrany, has warned that Indonesia, one of the world’s biggest consumers of tobacco and as yet not a signatory to the WHO’s Framework Convention on Tobacco Control (FCTC), and with few regulations restricting children’s access to cigarettes, has become a main target for the tobacco industry.

“It seems that we are in a battle ground, where tobacco company owners are among the country’s richest people, making money from poor people addicted to their product,” Hasbullah said.

The National Commission on Tobacco Control (Komnas PT), together with civil and health groups concerned with tobacco control in Indonesia, has urged the government to ignore pressure from the tobacco industry, including pressure applied via the International Tax and Investment Center (ITIC).

The ITIC is widely seen to directly and indirectly fight for the cigarette industry’s agenda.

Hasbullah said that if the government wished to regain its sovereignty over the economy, as stipulated in the Nawa Cita (President Joko “Jokowi” Widodo’s nine-point development program), Indonesia must instead implement a pro-people economic policy

Manufacturers behind low cigarette taxes in RI: Commission

May 7th, 2015
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http://www.thejakartapost.com/news/2015/05/07/manufacturers-behind-low-cigarette-taxes-ri-commission.html

The National Commission on Tobacco Control (Komnas PT) is warning about the potential influence of manufacturers over the government’s ongoing efforts to determine the proper tobacco taxes that are currently being considered as a proven strategy to reduce smoking.“The cigarette industry can make such an intervention through various activities and high-level lobbying, one of which is via international institutions,” Komnas PT chairman Prijo Sidipratomo said in a release made available to The Jakarta Post on Thursday.

He said cigarette prices in Indonesia were considered very low and affordable even for young smokers; thus, the maximum increase in cigarette taxes needed to be applied to limit cigarette consumption in the country.“High taxes can lead to a jump in cigarette prices in Indonesia, allowing the government to control cigarette consumption among susceptible groups, such as poor people and children,” said Prijo.He said limiting people’s access to cigarettes through high taxes was popular in other countries, especially those that had acceded to the World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC). Such a strategy was also proven as a ‘win-win’ solution for the government’s revenues and its efforts to protect people’s health from cigarette smoking impacts, he added.

The Komnas PT chairman was speaking in response to the presence of several Indonesian fiscal and financial officials in the Asia-Pacific Tax Forum held by the International Tax and Investment Center (ITIC) in New Delhi, India, from May 5 to 7.

The ITIC is among the organizations blacklisted by WHO and the World Bank (WB) as it is sponsored by four multinational cigarette companies, namely Philip Morris International, British American Tobacco, Imperial Tobacco and JTI.

The forum has drawn sharp criticism regarding, particularly, the sponsorship of the cigarette companies, forcing the WB to pull out its support. A number of financial officials from several countries also decided to not attend the forum because of the cigarette sponsorship. Unfortunately, Indonesia has decided that it will still take part in the forum. Komnas PT says the Asia-Pacific Tax Forum currently held by the ITIC is one of the interventions conducted by the cigarette industry to ensure the continuity of their business by working against efforts by countries to increase their cigarette taxes.

Manufacturers’ interventions on the government’s cigarette taxing policy can be seen when via the ITIC, an institution they are sponsoring, the cigarette companies invite representatives from various countries to attend an international forum to discuss the tax policies of those countries, the commission says

Breach of the Business Appointment Rules for civil servants by Mr Dave Hartnett

May 7th, 2015
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It seems Mr Hartnett knows the UK Govt retirement rules well

May 7th, 2015
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CTA says: it seems Mr Hartnett knows the UK Govt retirement rules well, as the listed letters on the Acoba site show-

https://www.gov.uk/new-business-appointments-for-senior-public-servants

https://www.gov.uk/government/publications/acoba-recommendation-dave-hartnett-permanent-secretary-for-tax-hm-revenue-and-customs

However Acoba has no record of Mr Hartnett joining ITIC as a director in 2013, well within the 2 years-after-retirement-need-permission regulation.

Did he just forget, or was it to do with the fact that ITIC is funded by Big Tobacco, Big Beverage, Big Energy and a litany of  lawyers and accountancy firm ?

‘Dave Hartnett’ David Anthony “Dave” Hartnett CB, is a former British civil servant who served as the Permanent Secretary for Tax at HM Revenue and Customs until his retirement in July 2012

 http://en.wikipedia.org/wiki/Dave_Hartnett

 http://www.telegraph.co.uk/news/politics/7833886/Whitehalls-most-wined-and-dined-civil-servant-is-HMRCs-Dave-Hartnett.html

Whitehall’s Most Wined and Dined – Mr Hartnett, who is in charge of the Britain’s tax system, was entertained 107 times, mostly at breakfasts, lunches and dinners, by some of the UK’s biggest banks, law firms and accountancy firms, among others. Companies that entertained him included Goldman Sachs, JP Morgan, Ernst & Young, KPMG, Price Waterhouse Coopers, and Deloitte

 http://companycheck.co.uk/company/05977277

14/08/2014 New Board Member Mr D.A. Hartnett appointed
St Mary’s University Twickenham

Registered Details Short name David Hartnett

Date of Birth: 25/02/1951

Director ID: 919008755 Registered Address Waldegrave Road, Strawberry Hill Twickenham LondonTW1 4SX

Read more at: http://companycheck.co.uk/director/919008755

image002

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8823086/Dave-Hartnett-accused-of-lying-to-Parliament-over-Goldman-Sachs-tax-bill.html

Dave Hartnett, permanent secretary for tax at HM Revenue & Customs (HMRC), was forced to defend revelations that he supervised and signed off a deal that saved Goldman £10m of tax – when he told MPs just a month ago that he did “not deal with Goldman’s tax affairs”.

Margaret Hodge, chairman of the Public Accounts Committee (PAC), said to him: “It seems to me you lied when you told the Treasury Select Committee on 12th September that, and I quote, ‘I do not deal with Goldman’s tax affairs’… we had access to a meeting on 8th December in the offices of your lawyers where it is stated that you had settled and had in fact shaken hands on a deal on their tax affairs.”

“I did not lie,” Mr Hartnett said. “I did not deal with Goldman Sachs tax affairs in the normal sense.”

Ms Hodge said that Mr Hartnett was “playing with words” and his denials were “laughable.” She told him: “It appears that £10m was lost to the taxpayer because of a deal you did with Goldman Sachs. We were ripped off.”

HMRC has been accused of forgiving Goldman for millions of pounds of tax that should have been paid on remuneration and bonus payments that were paid through an off-shore company in the British Virgin Islands.

After a clamp-down on the loop-hole by Gordon Brown, 21 firms settled with HMRC. Goldman held out because HMRC had made a technical mistake in its handling of Goldman’s case by assessing its UK company rather than the off-shore one.

It is the latest in a line of embarrassing errors made by HMRC which include a £1.25bn settlement with Vodafone over a £6bn dispute and the PAYE fiasco last year.

Mr Hartnett told MPs he had been asked by colleagues working on Goldman case to “assist in a very difficult relationship issue” between HMRC and the bank. He said the deal had been reached because a “mistake had been made” for which he was “very sorry.” Asked if there had been a “problem” in the way the settlement was reached, Mr Hartnett admitted there had been a “lack of objective assurance” in the process.

Asked if there had been any disciplinary procedure for the mistake he said: “None. We learned from that mistake as an organisation.” He said new procedures were being introduced to ensure that the mistake “can’t happen again.”

Mr Hartnett said he was often brought in on disputed cases because he was the only one of HMRC’s four commissioners “with deep tax knowledge.” MPs said they were “staggered” to hear that the other commissioners were not tax experts. He said two more commissioners were being hired.

He added that in future any case that a commissioner negotiated would be reviewed by two other commissioners “before the case can be settled.” He also suggested a new system, including the Finnish model of inserting an independent body between the revenue and the tax payer to resolve disputes.

India tobacco confab a ploy to sway policies, PH warned

May 7th, 2015
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http://globalnation.inquirer.net/122521/india-tobacco-confab-a-ploy-to-sway-policies-ph-warned?PageSpeed=noscript

MANILA, Philippines–Antismoking groups on Wednesday warned the government against participating in the three-day tax forum being held in India, saying it is a tobacco industry trap meant to sway government policies on public health and tobacco control in the Asia-Pacific region.

According to HealthJustice, New Vois Association of the Philippines (NVAP) and the Southeast Asia Tobacco Control Alliance (Seatca), the 12th annual Asia-Pacific Tax Forum, held from May 5 to 7 and organized by the International Tax and Investment Center (ITIC), received funding from giant tobacco companieshttp://images.intellitxt.com/ast/adTypes/icon1.png.

The groups identified these companies as Philip Morris International, Imperial Tobacco Ltd., British American Tobacco and JTI Group.

They also noted that the website of ITIC, described as a known tobacco industry front group, claimed that government delegations, including from the Philippines, have confirmed their participation in the forum.

“The forum serves as a venue for the tobacco industry front group to influence governments in the Asia Pacific region… a clear violation of the World Health Organization Framework Convention on Tobacco Control,” said Irene Reyes, managing director of HealthJustice.

Reyes added that the forum was also an infringement of a joint memorandum circular of the Civil Service Commission and the Department of Health issued in 2010, which requires government officials to protect public health policies from commercial and other vested interests of the tobacco industry.

“Philippine delegates must keep in mind their obligation to protect life-saving tobacco control measures against the interference of tobacco companies. Public health interests should always be prioritized over the commercial interests of the tobacco industry,” added NVAP president Emer Rojas.

The groups also pointed out that the World Bank and India’s finance minister had formally withdrawn their participation from the tax forum.

If traditionally conservative institutions like the World Bank “have seen through” the ITIC and its objectives, the government should not allow itself to be a party to the event, stressed Reyes.

Govt finance execs urged to boycott Asian tax forum with tobacco industry sponsors

May 5th, 2015
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http://www.interaksyon.com/article/109974/govt-finance-execs-urged-to-boycott-asian-tax-forum-with-tobacco-industry-sponsors

BANGKOK – Government finance and tax experts from the region are attending the Asia-Pacific Tax Forum that opens in New Delhi today, amid concern that the forum’s main organizer received sponsorships from Big Tobacco.

The Southeast Asia Tobacco Control Alliance (SEATCA) issued a word of caution to governments in the ASEAN region, particularly departments of Finance and Customs attending the Asia-Pacific Tax Forum.

The May 5-7 meeting drew flak after the organizers, the International Tax and Investment Center (ITIC) received sponsorships from, among others, big tobacco companies (Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Tobacco Group). Moreover, SEATCA noted, tobacco executives from these companies sit on ITIC’s Board of Directors. This, it added, poses a problem to participants from countries that are Parties to the tobacco treaty, the WHO Framework Convention on Tobacco Control (FCTC).

The FCTC in Article 5.3 warns governments to protect their public policies from any vested interest of the tobacco industry. To be compliant with FCTC Article 5.3, the Indian Minister of Finance, whom ITIC listed as the Chief Guest of the Asia-Pacific Tax Forum, is not attending the event. His name has been removed from the event website and the program agenda.

The World Bank has also announced withdrawal of its participation and financial support for the event.

The World Bank’s decision affirms the concerns around ITIC’s intentions and sets a positive precedent, said SEATCA. It also strengthens the ongoing global efforts to require greater transparency and distancing by international and intergovernmental agencies from tobacco interests.

According to information in the ITIC website, it has confirmed participation from six ASEAN countries – Cambodia, Indonesia, Malaysia, Myanmar, the Philippines and Thailand.

All countries in the ASEAN region, with the exception of Indonesia, are parties to the WHO FCTC and obligated to enforce the treaty.

Philippines government officials are bound by the DOH-CSC Joint Memorandum Circular 2010-01 that prohibits civil servants, including all legislative staff, from interacting with the tobacco industry except to the extent necessary for its effective regulation, supervision, or control, said SEATCA.

In 2012 the ITIC, through its president, Daniel Witt, had been aligned with the tobacco industry in opposing the sin tax reform bills that were being supported by the DOF and DOH. The Philippines nonetheless enacted these bills and has successfully implemented the sin tax reform.

ITIC a ‘pro-tobacco’ entity

“While the ITIC claims to be an independent, non-profit organization, it is in fact a pro-tobacco entity that does the bidding for the tobacco industry,” pointed out Dr. Ulysses Dorotheo, FCTC Programme Director of SEATCA. “Countries are better off not attending this event and making themselves vulnerable and running foul of the FCTC.”

The Tax Forum will discuss Goods and Services Tax (GST). GST came into force in Malaysia just last April 1, 2015. About two weeks after the GST went into effect, BAT Malaysia declared they were reverting to pre-GST prices for their main cigarette brands.

BAT controls 60 percent of the cigarette market in Malaysia. This means a reduction in cigarette prices and more affordable cigarettes for Malaysians. This move undermines the efforts of the Malaysian Ministry of Health to discourage smoking and raise taxes as a tobacco control measure in compliance with the FCTC.

The ITIC has discouraged the Malaysian government from increasing excise tax on tobacco claiming big tax increases will fuel smuggling, said SEATCA.

The ITIC, meanwhile has released a study on tobacco smuggling in Asia – a study described by SEATCA as containing more myths than facts, because its findings echo tobacco industry positions on tobacco tax. For SEATCA’s critique of the report, CLICK HERE. http://seatca.org/asia-11-illicit-tobacco-indicator-2012/

Civil society action in India to prevent tobacco industry interference

May 4th, 2015
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http://apps.who.int/fctc/implementation/database/groups/civil-society-action-india-prevent-tobacco-industry-interference

The International Tax and Investment Center (ITIC) is organizing the 12th Asia Pacific Regional Forum in New Delhi, India from 5-7 May.

ITIC has a number of tobacco companies as part of its board of directors and has produced many publications on several areas related to taxes and prices, investment and illicit trade in tobacco products.

The event website originally listed the Indian Minister of Finance (State) as the confirmed Chief Guest of its Opening ceremony, along with officials from his ministry, former Indian Minister of Finance and state government officials.

The Institute of Public Health (IPH), a Bengaluru based organization, wrote to the Union Minister of Finance requesting him to withdraw participation of his State Minister and ministry officials from the event and we followed up the issue in the media.

Subsequently, the State Minister’s name was removed from the event website and programme agenda.

Further, IPH wrote to the President of the World Bank requesting the Bank to withdraw its sponsorship of the event. The World Bank has today announced withdrawal of its participation and funding of the event.

The World Bank is an intergovernmental organization that is accredited as observer to the Conference of the Parties (COP) of the WHO FCTC and the FCTC Secretariat has concluded a cooperation framework with the Bank on several areas of work related to implementation of the Convention by the Parties. See para 18 of this document: http://apps.who.int/gb/fctc/PDF/cop6/FCTC_COP6_18-en.pdf

The timely action by members of the Framework Convention Alliance in different countries in the Asia-Pacific in response to an alert from HealthBridge Foundation has prompted several speakers and delegates to reportedly pull out of the event.

Still, the website of the ITIC-event says “Government and Parliamentary Delegations from the following countries have confirmed their participation: Australia, Bangladesh, Cambodia, Chinese Taipei, India, Indonesia, Korea, Laos, Malaysia, Myanmar, Pakistan, Philippines, Solomon Islands, Tajikistan, and Thailand.” Most of these countries are Parties to the WHO FCTC and are obligated to protect their tobacco control policies from the influence of tobacco industry. http://www.iticnet.org/aptf2015

The civil society will continue to work with Governments to put in place long term deterrent policies to avert such conflict of interests in the future.
Additional information

Earlier, before the sixth session of the Conference of the Parties, it has been brought to the attention of the Convention Secretariat that ITIC, in cooperation with the Eurasian Economic Commission, is organizing a briefing on tobacco excise taxation in Moscow on 12 October 2014, one day before the opening of the COP, and inviting tax officials from Parties and WHO Member States that are observers to the COP to participate. The Convention Secretariat responded rapidly, by bringing to the attention of the Parties that ITIC has a number of tobacco companies as part of its board of directors; the Secretariat also advised Parties and accredited observers to the Convention not to participate at the event in the light of their obligations under Article 5.3 of the WHO FCTC and its guidelines.

CTA Letter – Advisory Committee on Business Appointments – Mr Dave Hartnett

May 4th, 2015
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Government officials should not endorse any event funded by tobacco industry

May 4th, 2015
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World Bank exits event funded by tobacco companies

May 2nd, 2015
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http://timesofindia.indiatimes.com/india/World-Bank-exits-event-funded-by-tobacco-companies/articleshow/47127313.cms

NEW DELHI: The World Bank has pulled out of the tax conference, which was to be co-organized by a consortium funded by several transnational tobacco companies.

Till Thursday, the bank’s name featured on the website of the 12th Annual Asia Pacific Tax Forum, which is to be held in New Delhi from May 5-7. The organizers of the event — Indian Council for Research on International Economic Relations (ICRIER) and International Tax and Investment Centre (ITIC) had thanked the bank for “supporting” the event with “technical contributions and the participation costs of several governments”.

However, on Friday, the World Bank said it has decided not to participate or financially support the event. “The 12th Annual Asia Pacific Tax Forum had sought technical and financial support from the World Bank. However, after careful consideration, the bank has decided not to participate/financially support the event,” the bank said in response to an email query sent by ToI on Wednesday.

Meanwhile, the acknowledgement on tax event’s website has been taken off.

World Bank, popular for its anti-tobacco stand, had come into spotlight after its name featured among supporters of the event on the website of Asia Pacific Tax Forum. Bangalore-based Institute of Public Health (IPH) had also written to the bank requesting it to withdraw its support to the event.

The list of sponsors on the ITIC website includes four tobacco companies – Philip Morris International, Imperial Tobacco Ltd, British American Tobacco and JT International that was formerly Japanese Tobacco. ITIC’s Board of Directors also includes representatives from Philip Morris International, British American Tobacco, Imperial Tobacco and JTI.

“ITIC materials that are publicly available and internal tobacco industry documents made public through US-based litigation settlements show that ITIC as part of the tobacco industry has worked for more than two decades to undermine tobacco control policies around the world. ITIC therefore has the core interest of the tobacco industry in its agenda and work,” IPH said in its letter to World Bank.

Minister of state for finance Jayant Sinha has also refused to participate in the event. Sinha’s name also featured earlier on the website among guests. However, names of several other key government officials continue to be there on the guest list of the event, including revenue secretary Shakti Kant Das, Central Board of Direct Taxes chairperson Anita Kapur and Central Board of Excise and Customs chairman Kaushal Srivasatava.

Public health activists have raised concern that participation of government officials in such an event may amount to violation of WHO Framework Convention on Tobacco Control (FCTC), to which India is a signatory. FCTC acknowledges the influence of tobacco industry and its allies in tobacco control policymaking. Health ministry officials also approve of the concern

Article 5.3 of FCTC states, “In setting and implementing their public health policies with respect to tobacco control, Parties shall act to protect these policies from commercial and other vested interests of the tobacco industry in accordance with national law”.

Though World Bank maintains it has decided not to participate in the event, names of executives of World Bank continue to feature on the agenda of the event.

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