The innovative product of Philip Morris IQOS is available in Armenian market for 6 months

The innovative IQOS product of the leading tobacco company - Philip Morris International, that has been transforming the cigarette industry, is available for Armenian consumers for 6 months already. An alternative to cigarettes designed to minimize the harm of smoking, which works on the principle of replacement of the combustion by heating. It is noteworthy that before the official launch, 2.5 thousand adult smokers in our country have already chosen IQOS. Armenian representatives of the company stated that the interest of legal age smokers in IQOS is increasing day by day in Armenia. In order to get answers to public issues, Philip Morris's Armenian representatives responded to a number of observations at a press conference.

If IQOS contains nicotine, then what is the alternative?

Vahe Danielyan, Manager Corporate affairs, Scientific engagement and Innovations, said:" The innovative method we use is to pass from combustion to heat, which means from smoke to vapour. Studies of the prestigious international healthcare authorities have shown that tobacco sticks heated up to 350 degrees, expose significantly less toxic substances. Meanwhile, until recently, cigarette production has been supplying nicotine to smokers through smoke. It's not a secret that people smoke for different reasons, and nicotine is one of them. International scientific organizations argue that not nicotine, but the bad stuff in cigarette smoke is the primary cause of smoking-related illness. In this regard our innovative product is solution for those who do not want to quit smoking. That is, we are moving towards the less harmful way to consume nicotine. Of course, nicotine is addictive, and the best way at all times is to quit using nicotine containing products altogether".

 - Is it possible that Philip Morris' alternative product is harmless and does not cause addiction?

Natalia Mayorova General Manager, commented: "We have never stated that our products are completely harmless. Smoking is harmful and dangerous. Cigarette smoke contains 6,000 different compounds, of which about 100 are known as harmful or potentially harmful. Our innovative product is designed to reduce the risk of smoking because in the smoke-free products there is no combustion. Yes, the product contains nicotine. At the same time, as it was mentioned, it is scientifically proven that nicotine, through addictive, is not the main reason of smoking-related diseases. That's why it is written on HEETS cigarettes pack, that the product is not risk-free and causes addiction. In order for the consumers to switch to an alternative to cigarette, they must have the same feelings and ritual that they enjoy while smoking cigarette, so we have adapted our products to these requirements by the principle of reducing the risk.

- According to the RA Tax Code, tobacco substitutes are also taxed. Interestingly, why IQOS is not taxed by excise tax?

Vahe Danielyan, Manager Corporate affairs, Scientific engagement and Innovations, answered: "Philip Morris has no problem and can not have any in tax field in Armenia. HEETS heated tobacco sticks contain tobacco and are being classified as other manufactured tobacco not for smoking. Let me mention that the HEETS are classified in the same way in around 40 countries of the world such as Italy, Greece, Russia, and Kazakhstan. As you can see, this is an international practice, which is based on alternative nature of our product. At the same time, being tobacco-containing product, HEETS must be subject to excise tax. And, of course, Philip Morris Armenia pays excise tax for HEETS in the form prescribed by the Tax code of the republic of Armenia. Perhaps you have been stunned by the fact that you have not seen an excise mark on the HEETS box. The point is that HEETS, having another classification than cigarettes, are not subject of mandatory marking. Let me mention once again, it does not mean that we do not pay excise tax for them. Only in the six months of this year, according to State Revenue Committee statistics, we paid eight billion drams of taxes. Philip Morris Armenia ranked 6th in the list of 1000 taxpayers of Armenia according to the first half of 2018. To say that we have failed in this regard is not correct. In addition, regular tax inspections are carried out in our company and every year a mandatory financial audit, which is available to the public.

- According to one of the studies about IQOS, the filter inside heatsticks melts during use. How will you comment?

Vahe Danielyan, Manager Corporate affairs, Scientific engagement and Innovations, commented: “First of all, let me mention that Philip Morris is committed to the highest standards of scientific assessment and substantiation for our innovative products. At the same time, we strongly welcome independent testing of our products. To verify the hypothesis stated by the authors, we decided to reproduce the experiment. As it was expected, the authors’ conclusion that the polymer-film of the filter is melted by normal use, releasing a chemical into the vapor, was not consistent with our own observations. The filter, made from the corn starch, does not melt during use: it just becomes harder which is a normal reaction to the temperature of the aerosol. 

- How reliable is the fact that Philip Morris is going to stop the sale of cigarettes?

Natalia Mayorova General Manager, commented: “I understand, it may sound confusuing, but we do believe we will stop selling cigarettes on one beautiful day. We believe that our future is connected with smoke free products. But in this case we need the support of the authorities and the public to help the adult smokers to quit smoking and switch to alternative products. "