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.

Russian's Stavropol court convicts four men over illegal sales of disposable vapes
Russian's Stavropol court convicts four men over illegal sales of disposable vapes
A court in Russia’s Stavropol region convicted four local residents of illegal sales of disposable vapes, with the seized products valued at more than 26 million rubles (about $338,000). The regional prosecutor’s office said the organized group operated from March 2022 to June 2023, selling disposable electronic vapes in Stavropol, Nevinnomyssk and Mikhaylovsk, while the products lacked mandatory information required by law.
Dec.31 by 2FIRSTS.ai
China Caps E-Cigarette Capacity and Requires Export Compliance Proof to Curb “Involution”
China Caps E-Cigarette Capacity and Requires Export Compliance Proof to Curb “Involution”
China’s top tobacco regulator has issued a directive aimed at preventing excess capacity and curbing “involution-style” competition in the e-cigarette sector. The notice tightens investment controls, formalizes verified capacity management and requires exporters to submit compliance proof for destination markets, signaling a push toward higher industry concentration and stricter cross-border oversight.
Special Report
Feb.13
Philippine Lawmakers Push Bill to Close Vape Tax Loopholes
Philippine Lawmakers Push Bill to Close Vape Tax Loopholes
Lawmakers in the Philippines are pushing House Bill 5207 (HB 5207), which seeks to harmonize excise tax rates on vapor products and address disparities between nicotine salt and freebase nicotine taxation. The bill, supported by more than 40 lawmakers including Deputy Speaker Kristine Singson-Meehan, would raise taxes on freebase nicotine products to align them with nicotine salt rates.
Regulations
Feb.22
IQOS Partners with Mexico’s Zamna Festival; PMI Says Adult User Base Tops 140,000
IQOS Partners with Mexico’s Zamna Festival; PMI Says Adult User Base Tops 140,000
Philip Morris International (PMI) said IQOS, via its “IQOS Curious X” platform, has entered a global partnership with the Zamna music festival in Tulum, Mexico, with the collaboration making its on-site debut during Zamna 2026 and targeting adult nicotine users. PMI said IQOS has more than 34 million users worldwide, while the number of adult consumers in Mexico has surpassed 140,000.
Jan.15 by 2FIRSTS.ai
BAT Japan rolls out limited-edition “Rose Quartz” colourway for glo Hilo, launches new virto click-capsule flavour
BAT Japan rolls out limited-edition “Rose Quartz” colourway for glo Hilo, launches new virto click-capsule flavour
British American Tobacco (BAT) Japan will introduce its first Valentine’s-season limited-edition colourway, “Rose Quartz,” for the glo Hilo heated tobacco device lineup, covering both the glo Hilo and glo Hilo Plus. The devices are priced at JPY 3,980 (about $25.2) and JPY 6,980 (about $44.1), respectively, and will go on sale via official channels from Feb. 9. BAT Japan will also launch a new glo Hilo-compatible virto tobacco stick variant, “virto Bright Cherry Click,” on Feb. 2.
Jan.20 by 2FIRSTS.ai
South Dakota Senate Committee Advances Bill Tightening Nicotine Retail Rules
South Dakota Senate Committee Advances Bill Tightening Nicotine Retail Rules
South Dakota Senate Bill 221 (SB 221), which seeks to regulate the retail sale of nicotine products, has passed the Senate Health and Human Services Committee with a unanimous 7–0 recommendation. The bill was significantly amended, expanding from three to nine pages and shifting its focus from vapor products alone to all nicotine products.
Regulations
Feb.22