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Statement from UZBAT Regarding the Proposed E-Cigarette Ban‍

In connection with the consideration and adoption of the draft law on the ban on electronic cigarettes by the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan, JSC JV “UzBAT A.O.” (hereinafter referred to as the Company) declares the following.

Electronic cigarettes and other tobacco harm reduction products (nicotine pouches and heated tobacco products) represent a significant opportunity to improve public health by reducing the risks associated with traditional smoking. Scientific researches confirm that electronic cigarettes have significant potential to reduce the harm from traditional cigarettes due to the absence of combustion processes during their consumption.

In countries where regulators adhere to the concept of tobacco harm reduction (for example, New Zealand and the UK), there has been a steady decline in smoking levels due to smokers switching to, among other things, electronic cigarettes, which confirms the effectiveness of the chosen approach.

Bans on electronic cigarettes, as world experience shows, do not lead to a decrease in their consumption, but only contribute to the emergence of an illegal market, which is clearly demonstrated by the examples of countries such as Brazil and Turkey, where after a similar ban, the level of consumption of illegal electronic cigarettes is growing every year.

The example of the Republic of Uzbekistan is also indicative, where, after the ban on the circulation of nicotine pouches that came into force on May 25, 2024, a market for illegal and sometimes counterfeit nicotine pouches arose. Such illicit pouches do not pass confirmation of compliance with SanPiN No. 0366-19 “Hygienic Standards for Food Safety” and from the turnover of which no taxes or fees are paid to the state budget.

Separately, we would like to note that on January 1, 2025, the Technical Regulations on Tobacco Products came into force, establishing multiple requirements for the composition and information on consumer packaging of electronic cigarettes, which will fully ensure the quality and safety of these products in Uzbekistan.

In addition, the turnover of legal electronic cigarettes brings stable tax revenues to the state budget. According to the version of the Tax Code of the Republic of Uzbekistan that came into force on January 1, 2025, the excise tax rate on electronic cigarettes was increased by 200% to 2,000 soums per 1 ml of nicotine-containing liquid.

“In line with our global vision to create A Better Tomorrow™ by building A Smokeless World, which focuses on transitioning adult smokers to less harmful smokeless alternatives, such as e-cigarettes, which has reduced risk potential compared to smoking based on the weight of scientific evidence to date. Restricting adult consumers’ access to legal, high-quality products undermines harm reduction efforts and public awareness. While the company strongly advocates for strict measures to prevent access to tobacco and nicotine-containing products for individuals under 21, global experience shows that banning legal products often results in the expansion of illicit markets and uncontrolled distribution of substandard goods to underage,” stated Temur Gadaybaev, General Director of the Сompany.

We recognize the importance of enforcing age restrictions on electronic cigarettes and all tobacco or nicotine-containing products for those under 21. The generally recognized effective methods of such restrictions are:

- control over the retail sale of electronic cigarettes and imposition of the administrative liability on persons who allowed the sale of such products to persons under 21 years of age;

- functioning system of electronic labeling and traceability of the sales of electronic cigarettes;

- effective and evidence-based taxation to be enforced, eliminating the excise loophole that can be caused by the illicit players while restricting the access by underage.

The company urgently calls for abandoning the intention to ban the circulation of electronic cigarettes in the Republic of Uzbekistan. We believe that an implementation of a balanced approach aimed at regulating and controlling access to electronic cigarettes, especially for persons under 21 years of age. We are ready to cooperate with regulators to achieve a common result - improving public health.

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