RECOMMENDATION 8

REGULATION OF STATE-OWNED TOBACCO ENTERPRISES TREAT STATE-OWNED TOBACCO COMPANIES IN THE SAME WAY AS ANY OTHER TOBACCO INDUSTRY

This recommendation addresses specific situations where the government, whether deliberately or inadvertently, encourages tobacco industry investments. This reflects a defiance of the treaty-based commitments to tobacco control.

Hence, governments must:
a. Enact laws that remove the tobacco industry from being a beneficiary of laws that provide business or investment incentives or privileges, such as Foreign Investment Laws, Economic Zone laws, and even Free Trade laws.

b. Repeal laws, orders, or policies that give preferential tax treatment to the tobacco industry.

c. Adopt policies to revoke, terminate, and ensure non-renewal of contracts that bring the tobacco industry under certain benefits and privileges.

d. Divest investments in the tobacco industry. This includes adopting policies in Treasury to remove the tobacco industry from investment portfolio /options for government funds. Government-owned and controlled corporations should also adopt the same investment policies.


CASE STUDY: THAILAND
case-study

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