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.

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
EUIPO Rejects Imiracle’s Opposition to ‘Crystal’ Trademark, Citing Lack of Proof of Actual Use in Slovakia
EUIPO Rejects Imiracle’s Opposition to ‘Crystal’ Trademark, Citing Lack of Proof of Actual Use in Slovakia
The EUIPO has ruled that Imiracle failed to demonstrate actual commercial use of its “Elfbar Crystal” brand in Slovakia, and therefore rejected in full the company’s opposition to Shenzhen SKE Technology’s application to register the “Crystal” trademark. The EUIPO noted that the sales records submitted by Imiracle were limited in scope and that the product packaging was in Ukrainian, which it found insufficient to prove that the products had been placed on the Slovak market.
Dec.10 by 2FIRSTS.ai
Malaysia’s MOH aims to implement a vape ban in 2026, starting with open pod systems
Malaysia’s MOH aims to implement a vape ban in 2026, starting with open pod systems
Bernama (Malaysia’s national news agency) reported that Health Minister Datuk Seri Dr Dzulkefly Ahmad said the Ministry of Health aims to implement a vape ban this year, beginning with open pod systems, and will not compromise on enforcing the Control of Smoking Products for Public Health Act 2024 (Act 852).
Jan.06 by 2FIRSTS.ai
Philip Morris International Opens IQOS Flagship Boutique in the Philippines, Featuring an IQOS Scent Experience Zone
Philip Morris International Opens IQOS Flagship Boutique in the Philippines, Featuring an IQOS Scent Experience Zone
PMFTC, the Philippine affiliate of Philip Morris International (PMI), opened an IQOS flagship boutique on December 19 in the Ayala business district of Makati City, the Philippines. Positioned as a multi-sensory, immersive retail space, the store is designed for legal-aged nicotine users. It features the Philippines’ first IQOS Scent Experience zone and also showcases the upcoming IQOS x ISABEL collaboration.
Dec.29 by 2FIRSTS.ai
Call2Recycle Expands Vape Recycling in Canada, Bringing Cannabis Devices Into Quebec-Wide Program
Call2Recycle Expands Vape Recycling in Canada, Bringing Cannabis Devices Into Quebec-Wide Program
Call2Recycle Canada, the country’s battery stewardship organization, is expanding its vape recycling program in Quebec to include cannabis vape devices, strengthening the safe recovery of embedded batteries and device materials. Backed by government bodies, producers and other stakeholders, the initiative aims to reduce landfill waste and create a scalable model for other Canadian provinces.
Dec.03 by 2FIRSTS.ai
Belarus to Tighten Vape Regulations, Raise Excise Taxes in 2026
Belarus to Tighten Vape Regulations, Raise Excise Taxes in 2026
Belarusian lawmakers are drafting a new bill to regulate the vape market amid growing concern over youth nicotine use and the spread of illegal products. While a total ban is not planned, the focus will be on stricter licensing, advertising limits, and higher taxes.
Nov.19 by 2FIRSTS.ai