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.

R.J. Reynolds Seeks Dismissal of “Carbon Neutral” Lawsuit over Vuse E-Cigarette Claims
R.J. Reynolds Seeks Dismissal of “Carbon Neutral” Lawsuit over Vuse E-Cigarette Claims
R.J. Reynolds Vapor Co. has moved to dismiss a class-action lawsuit alleging false “carbon neutral” claims for its Vuse e-cigarettes, arguing its statements were based on independent certifications from Verra and Vertis, not misleading consumers.
Oct.23 by 2FIRSTS.ai
Al Fakher Partners with U.S. Rapper Snoop Dogg to Launch New Hookah Flavors
Al Fakher Partners with U.S. Rapper Snoop Dogg to Launch New Hookah Flavors
According to Business Wire, AIR Limited has partnered with Snoop Dogg to develop new hookah flavors for its flagship brand Al Fakher. The products will be released on November 3, 2025, across international and German online platforms, expanding the brand’s flavor portfolio.
Nov.21
Morocco Lawmakers Propose Excise Taxes on Vapes, Hookah, and Nicotine Alternatives
Morocco Lawmakers Propose Excise Taxes on Vapes, Hookah, and Nicotine Alternatives
Members of the Socialist Union of Popular Forces (USFP) have submitted amendments to Article 7 of the Finance Bill, introducing new excise taxes on e-cigarette liquids, hookah accessories, and non-tobacco nicotine products. The proposal also revises VAT exemptions and insurance tax rates to enhance fiscal fairness and revenue clarity.
Nov.11 by 2FIRSTS.ai
AG Miyares Argues Vape Ban Consistent with Federal Law, Seeks Dismissal
AG Miyares Argues Vape Ban Consistent with Federal Law, Seeks Dismissal
Virginia Attorney General Jason Miyares and Tax Commissioner James J. Alex have asked a federal court to dismiss a lawsuit challenging the state’s ban on flavored e-cigarettes. They argue plaintiffs lack standing because the products are already illegal under federal law. The state denies claims of federal preemption and asserts sovereign immunity, maintaining that its ban aligns with its authority to protect public health.
Nov.24 by 2FIRSTS.ai
Canada’s B.C. Passes First Vaping Cost-Recovery Framework, Allowing Government to Sue Manufacturers Over Health Expenses
Canada’s B.C. Passes First Vaping Cost-Recovery Framework, Allowing Government to Sue Manufacturers Over Health Expenses
According to the Nelson Star, British Columbia has passed the Vaping Product Damages and Health Care Costs Recovery Act by a 49–42 vote. The legislation enables the provincial government to seek recovery of future public health costs from vape manufacturers, following models used in opioid and tobacco litigation.
Dec.03
Hounslow Crackdown Seizes £33,000 of Illegal Vapes and Combustible Cigarettes
Hounslow Crackdown Seizes £33,000 of Illegal Vapes and Combustible Cigarettes
Hounslow Council’s Trading Standards team, working with Metropolitan Police units, conducted test purchases across the borough and found seven premises selling illegal tobacco. Subsequent raids at 16 premises in Chiswick, Feltham and Hounslow High Street seized 4,859 illegal vapes (≈£30,000), 3,806 combustible cigarettes (≈£3,000), 16kg of shisha and 11kg of chewing tobacco. Offences included oversized tanks, over-strength nicotine, and unregistered products.
Oct.22 by 2FIRSTS.ai