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.

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
Exclusive | China Releases E-Cigarette Regulatory “Status Report”, First Comprehensive Disclosure of Oversight Framework and International Cooperation
Exclusive | China Releases E-Cigarette Regulatory “Status Report”, First Comprehensive Disclosure of Oversight Framework and International Cooperation
As 2025 draws to a close, China’s State Tobacco Monopoly Administration has released a white paper–style “Status Report” on e-cigarette regulation, systematically outlining its oversight framework, enforcement outcomes and international cooperation. 2Firsts provides exclusive in-depth reporting and analysis, offering insight into China’s regulatory logic and governance direction.
Dec.29 by 2Firsts Perspectives
BAT Malaysia names Mohd Nizom Sairi as board chairman effective January 1, 2026
BAT Malaysia names Mohd Nizom Sairi as board chairman effective January 1, 2026
BAT Malaysia announced that its independent non-executive director Datuk Seri Dr Mohd Nizom Sairi has been re-designated as board chairman effective January 1, 2026.
Jan.04 by 2FIRSTS.ai
Comedian Shuib fined  US$2,460 after pleading guilty to promoting an e-cigarette on a podcast
Comedian Shuib fined US$2,460 after pleading guilty to promoting an e-cigarette on a podcast
Bernama reported that comedian Shahmira Muhamad, better known as Shuib Sepahtu, was fined RM10,000 (about US$2,460.93) after pleading guilty to promoting an electronic cigarette product on a YouTube podcast in 2024. The magistrate ordered one month’s jail in default of payment, and he paid the fine. He was charged over a promotion at 4.26pm on Oct 22, 2024, under Section 9(1) of the Control of Smoking Products for Public Health Act 2024 (Act 852).
Jan.08 by 2FIRSTS.ai
IMiracle  Announces 2025 R&D Progress with Over 2,200 Patent Applications Worldwide
IMiracle Announces 2025 R&D Progress with Over 2,200 Patent Applications Worldwide
IMiracle announces significant R&D progress in 2025, with over 2,200 patent applications globally and 900 authorized patents.
Dec.18 by 2FIRSTS.ai
BREAKING: China Brings Nicotine Pouches Under Tobacco Monopoly Regulation, Signaling Major Shift for Oral Products
BREAKING: China Brings Nicotine Pouches Under Tobacco Monopoly Regulation, Signaling Major Shift for Oral Products
China has for the first time issued clear regulatory rules for nicotine pouches and other oral nicotine products, formally classifying them under the tobacco monopoly alongside cigarettes and tobacco, ending a long-standing legal grey zone and laying the regulatory groundwork for their potential domestic launch.
Jan.09 by Alan Zhao | 2Firsts Perspectives