Closing the E-cigarette Advertising Tax Loophole

Mar.16.2023
Closing the E-cigarette Advertising Tax Loophole
US lawmakers seek to end tax deductions for e-cigarette ads amid ban on traditional tobacco advertising since 1971.

Since January 1971, traditional tobacco advertising has been banned in the United States. However, this does not apply to electronic cigarettes.


Currently, US law allows manufacturers to apply for federal tax breaks on advertising costs for e-cigarettes. Congress hopes to close this tax loophole.


Senators Jeanne Shaheen and Richard Blumenthal have reintroduced the "E-cigarette and Tobacco Advertising Tax Subsidies Repeal Act" (S.464). If passed, this legislation would not make e-cigarette advertising illegal, but it would terminate tax deductions for e-cigarette advertising expenses.


Shahin and Blumenthal first introduced the bill in 2019, but so far it has not received enough support in Congress to be approved.


Reference:


1. Congress aims to close a loophole in advertising regulations for e-cigarettes.


Congress is currently considering the possibility of discontinuing the tax deduction that e-cigarette advertisements on the radio currently enjoy.


Further reading:


The US Senate reintroduces bill on tax-free subsidies for electronic cigarette and tobacco advertisements.


The US Congress will close a "loophole" in tobacco advertising.


This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

IMF Article Sets Out Three Principles: Cover All Harmful Products, Match Tax Rates to Harm, Improve Cross-Border Coordination
IMF Article Sets Out Three Principles: Cover All Harmful Products, Match Tax Rates to Harm, Improve Cross-Border Coordination
A March 2026 article in Finance & Development, “Taxing Harmful Habits,” argues that taxes on harmful products such as tobacco, alcohol and sugary drinks should better reflect the health harm they cause. The authors propose three principles: capture all harmful products, align tax rates with health harm, and strengthen cross-border coordination to reduce evasion and smuggling.
Mar.24 by 2FIRSTS.ai
JT to Launch New Ploom Stick Variant “EVO Sakura Regular” Nationwide in Japan on April 6
JT to Launch New Ploom Stick Variant “EVO Sakura Regular” Nationwide in Japan on April 6
JT said it will begin rolling out “EVO Sakura Regular,” a new product under the premium EVO brand for the heated tobacco brand Ploom, at convenience stores and tobacco retailers across Japan from April 6. The product has already been on sale since February 3 through the CLUB JT online shop and Ploom Shops nationwide.
Mar.13 by 2FIRSTS.ai
Singapore hikes vape penalties: users face up to S$10,000; importers up to 9 years
Singapore hikes vape penalties: users face up to S$10,000; importers up to 9 years
Singapore Parliament passes law to significantly increase penalties for e-cigarette possession, use, import, and sale, effective May 1.
Mar.09 by 2FIRSTS.ai
Special Report | China’s Two Sessions Revisit Consumption Tax Reform, Tobacco Tax Outlook Draws Attention
Special Report | China’s Two Sessions Revisit Consumption Tax Reform, Tobacco Tax Outlook Draws Attention
China’s 2026 “Two Sessions” again raised the issue of consumption tax reform. As the largest source of consumption tax revenue, the tobacco tax system—its collection stages, tax structure and regional revenue distribution—has re-entered the policy discussion. This article outlines the structure of China’s tobacco consumption tax, past adjustments and key areas of debate, providing international readers with background on one of the country’s most important tax categories.
Special Report
Mar.08
Syria announces comprehensive ban on e-cigarettes covering production, trade, sale and use
Syria announces comprehensive ban on e-cigarettes covering production, trade, sale and use
Syria Damascus health authorities announced a comprehensive ban on e-cigarettes, prohibiting their production, circulation, sale and use, citing health risks and the need to protect public health, particularly among children and young people.
Mar.02 by 2FIRSTS.ai
Nearly 35.00% of Surveyed Retailers Shifted to Online Sales After Tighter Controls in Vietnam
Nearly 35.00% of Surveyed Retailers Shifted to Online Sales After Tighter Controls in Vietnam
A study of nearly 2,500 university students in Hanoi, Da Nang, Hue, and Ho Chi Minh City found that the average age of first use of e-cigarettes and heated tobacco products was 16.90. The findings were presented on April 9 in Hanoi. The study also found that 14.00% of students had tried e-cigarettes and 3.00% were current users, while the figures for heated tobacco were 6.00% and 0.80%. % of surveyed retail outlets moving to online sales.
Apr.10 by 2FIRSTS.ai