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.

Acting CTP Director Says FDA Cut Premarket Tobacco Application Backlog by About 70% Over the Past Year
Acting CTP Director Says FDA Cut Premarket Tobacco Application Backlog by About 70% Over the Past Year
FDA Center for Tobacco Products Acting Director Bret Koplow said at the American Tobacco and Nicotine Forum that the agency has reduced its premarket tobacco application backlog by about 70% over the past year and eliminated the acceptance queue. He said FDA has reviewed about 27 million applications, but only a small number have been authorized, mainly because most submissions lacked the scientific data needed to demonstrate public health benefits.
Apr.23 by 2FIRSTS.ai
BAT France Confirms Full Compliance as France Implements Nicotine Pouch Ban on April 1from April 2026
BAT France Confirms Full Compliance as France Implements Nicotine Pouch Ban on April 1from April 2026
BAT France said that, under the decree of September 5, 2025 that entered into force on April 1, 2026, it has stopped commercialising its nicotine pouch products in France from that date.
Apr.03 by 2FIRSTS.ai
Cross-Party Romanian Lawmakers Propose Ban on E-Cigarettes and Heated Tobacco Use in All Enclosed Public Spaces
Cross-Party Romanian Lawmakers Propose Ban on E-Cigarettes and Heated Tobacco Use in All Enclosed Public Spaces
Lawmakers from Romania’s USR, PSD and PNL have submitted a bill that would ban e-cigarettes, vapes and heated tobacco devices in all enclosed public spaces. The proposal would redefine “smoking” so that inhaling aerosols produced by heating or vaporizing products containing tobacco, nicotine or other substances intended for inhalation would also be considered smoking, except for medical-use products.
Apr.17 by 2FIRSTS.ai
 Bangladesh Approves Amended Tobacco Control Law Expanding Ad Bans and Smoke-Free Areas
Bangladesh Approves Amended Tobacco Control Law Expanding Ad Bans and Smoke-Free Areas
Bangladesh’s new government has approved a broad tobacco control amendment that bans tobacco advertising, promotion and display across print, electronic, digital and social media, entertainment platforms and points of sale. The law does not cover newer products such as vapes, heated tobacco products, electronic nicotine delivery systems or nicotine pouches.
Apr.22 by 2FIRSTS.ai
Canadian Border Officers Seize Contraband Worth CAD 4.5 Million at Point Edward Crossing
Canadian Border Officers Seize Contraband Worth CAD 4.5 Million at Point Edward Crossing
The Canada Border Services Agency said border officers at the Point Edward port of entry in Sarnia, Ontario, seized more than CAD 4.5 million worth of illegal tobacco and nicotine vapes over a seven-day period. The agency said the contraband was entering Canada from the United States and described the seizure as part of ongoing efforts to prevent illegal products from entering the country and disrupt organized crime.
Mar.26 by 2FIRSTS.ai
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA CTP issued a May 7 statement on accelerating product review and improving PMTA efficiency, but did not push it via official X and newsletter until May 13, one day after FDA Commissioner Marty Makary’s resignation was confirmed. FDA has not explained the delay, and no public evidence links it directly to the leadership change. The timing is notable given CTP’s usual 24-hour distribution practice.
Special Report
May.14