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.

Scottish Retailers Urge Government to Fast-Track Nicotine Pouch Regulations
Scottish Retailers Urge Government to Fast-Track Nicotine Pouch Regulations
The Scottish Grocers’ Federation (SGF) is calling on the government to clarify the regulatory framework for nicotine pouches in order to prevent high-strength and illegal products from entering the market, stressing that these products should not be targeted at minors.
Dec.04 by 2FIRSTS.ai
Japan Tobacco Expands Ploom Aura EVO Menthol Line With Two New Products and One Upgraded Blend
Japan Tobacco Expands Ploom Aura EVO Menthol Line With Two New Products and One Upgraded Blend
Japan Tobacco Inc. (JT) has added two new EVO sticks, Evo Black Menthol and Evo Fresh Mint, to its Ploom Aura lineup and reformulated Evo Cold Menthol, creating a menthol range with three distinct levels of cooling intensity and flavor profile.
Dec.01 by 2FIRSTS.ai
Azerbaijan Considers Comprehensive Ban on E-cigarettes
Azerbaijan Considers Comprehensive Ban on E-cigarettes
Azerbaijan is advancing legislative amendments to prohibit the circulation of electronic cigarettes and their components. The proposed changes, discussed at a joint meeting of several parliamentary committees, aim to ban the import, export, production, storage, wholesale and retail sale, and use of e-cigarettes.
Dec.17 by 2FIRSTS.ai
Illegal tobacco syndicate dominates Australia’s vape market through threats and extortion
Illegal tobacco syndicate dominates Australia’s vape market through threats and extortion
Australia’s The Age has revealed that a local tobacco cartel is working with a crime syndicate to dominate the illicit vape trade. The Australian Border Force (ABF) intercepted 115,200 vapes worth A$4.5 million disguised as “furniture” at Sydney port. Authorities say over 12 million illegal vapes have been seized since 2024.
Nov.03
China Opens 2026 National E-Cigarette Standards Project for Public Submissions
China Opens 2026 National E-Cigarette Standards Project for Public Submissions
The State Administration for Market Regulation (SAMR) and the State Tobacco Monopoly Administration (STMA) jointly announced the launch of the 2026 National Standardization Project for E-cigarettes. The initiative, coordinated by the National Technical Committee on Standardization of E-cigarettes, aims to enhance the industry’s regulatory framework through new standards on manufacturing, storage, distribution, and evaluation.
Nov.27 by 2FIRSTS.ai
Virginia Seeks to Dismiss E-Cigarette Ban Challenge, Citing Lack of Legal Standing
Virginia Seeks to Dismiss E-Cigarette Ban Challenge, Citing Lack of Legal Standing
The Virginia Attorney General and tax commissioner have urged a federal court to dismiss a lawsuit challenging the state’s ban on unapproved e-cigarettes, arguing that the companies behind the suit lack legal standing since their products are federally illegal. The state contends the plaintiffs, Novo Distro Inc. and Tobacco Hut and Vape Fairfax Inc., have no lawful right to sell unapproved vapes and cannot show irreparable harm.
Dec.10 by 2FIRSTS.ai