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.

Thai Police Bust Large-Scale Illegal Vape Production Site
Thai Police Bust Large-Scale Illegal Vape Production Site
Thai economic crime police have raided a residence in Chonburi province used for the illegal production and distribution of e-cigarettes, arresting a Chinese national. Authorities seized large quantities of vape devices, components, e-liquids and production equipment, as well as powder suspected to be linked to a controlled psychoactive substance. Further forensic analysis is underway.
Dec.22 by 2FIRSTS.ai
FDA Rolls Out Online PMTA Platform, a Move That 2Firsts Analysts Say Could Pull Grey-Market Products Toward Formal Compliance
FDA Rolls Out Online PMTA Platform, a Move That 2Firsts Analysts Say Could Pull Grey-Market Products Toward Formal Compliance
FDA’s launch of a web-based PMTA system signals faster reviews and, 2Firsts experts say, a possible inflection point for the U.S. e-cigarette market’s shift out of the grey zone.
Dec.04
Novosibirsk Governor: Targeted Vape Restrictions More Effective Than Full Ban
Novosibirsk Governor: Targeted Vape Restrictions More Effective Than Full Ban
Novosibirsk Region Governor Andrey Travnikov said during a live Q&A session that local authorities have no plans to impose a full ban on the sale of vapes and disposable e-cigarettes. He argued that a regional ban would be ineffective and could encourage gray market activity and cross-border resale.
Dec.12 by 2FIRSTS.ai
British American Tobacco Introduces Facial Age Verification in Italy, Pilot Covers 119 Stores
British American Tobacco Introduces Facial Age Verification in Italy, Pilot Covers 119 Stores
British American Tobacco’s Italian unit is partnering with digital identity firm Yoti to pilot facial-scan age verification at 119 pop-up stores nationwide, aiming to supplement traditional ID checks and prevent underage purchases of tobacco and nicotine products.
Dec.25 by 2FIRSTS.ai
PMI’s Smoke-Free Playbook: What Jacek Olczak Really Told Wall Street
PMI’s Smoke-Free Playbook: What Jacek Olczak Really Told Wall Street
At the Morgan Stanley Global Consumer & Retail Conference on December 2, 2025, PMI CEO Jacek Olczak delivered a clear message: the company’s smoke-free shift is now its central strategy. From ZYN’s surge in the U.S. to IQOS’s global momentum and a changing regulatory tone, his remarks sounded less like an earnings update and more like a declaration of PMI’s smoke-free future.
PMI
Dec.03
Russia’s Federation Council Approves Ban on Vape and Cigarette Sales at Transport Stops
Russia’s Federation Council Approves Ban on Vape and Cigarette Sales at Transport Stops
Russia’s Federation Council has approved a law banning the sale of all nicotine-containing products, including cigarettes and e-cigarettes, at urban and suburban public transport stops. The law includes an exemption for cases where a retail outlet at a stop is the only point of sale in a locality. The legislation will come into force on September 1, 2026.
Dec.19 by 2FIRSTS.ai