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.

Kazakhstan’s Astana Baikonur District Fines Illegal Smokeless Tobacco Sales Over USD 5,800
Kazakhstan’s Astana Baikonur District Fines Illegal Smokeless Tobacco Sales Over USD 5,800
Authorities in Astana’s Baikonur District have intensified enforcement against illegal smokeless tobacco and related products in 2025. Police conducted 59 inspection raids, identifying 63 cases of illegal sales of smokeless tobacco (nasvay). Total fines imposed reached KZT 3,096,450(approximately USD 5,880). Officials said inspections and preventive outreach will continue.
Dec.29 by 2FIRSTS.ai
Mexico City hands over 50,376 vapes and e-cigarettes for destruction, valued at USD 570,000
Mexico City hands over 50,376 vapes and e-cigarettes for destruction, valued at USD 570,000
Mexico City Head of Government Clara Brugada handed over 50,376 vapes and e-cigarettes in the Zócalo for final destruction. The report puts the value at 10 million pesos (about USD 570,000) and says the goods were seized from a stall and a warehouse in the Historic Center, with one person detained because selling these products is illegal.
Jan.19 by 2FIRSTS.ai
France drops a vaping clause from the 2026 finance bill after use of Article 49.3
France drops a vaping clause from the 2026 finance bill after use of Article 49.3
A provision in France’s 2026 finance bill intended to regulate vaping products was abandoned after Sébastien Lecornu used Article 49.3 on January 20 to commit the government’s responsibility on the “revenue” section of the state budget.
Jan.21 by 2FIRSTS.ai
Azerbaijan Imposes Comprehensive E-Cigarette Ban Covering Import, Export, Sales and Use, Effective April 1
Azerbaijan Imposes Comprehensive E-Cigarette Ban Covering Import, Export, Sales and Use, Effective April 1
Azerbaijan has approved amendments to its tobacco law that introduce a comprehensive ban on e-cigarettes and their components, covering import, export, production, storage, wholesale and retail sales, and use. Nicotine-containing e-cigarettes are classified as tobacco products under the revised framework. The law takes effect on April 1, 2026.
Jan.27 by 2FIRSTS.ai
UK South East Seized 3.1M Illegal Vapes Since 2021 as Crackdown Intensifies
UK South East Seized 3.1M Illegal Vapes Since 2021 as Crackdown Intensifies
Illegal vape seizures in the UK South East have risen sharply over the past five years, with 2023 marking the high point. While single-use vapes were banned from sale in June 2025, enforcement teams say disposable products remain in circulation, fueling renewed calls for licensing and stronger enforcement funding.
Jan.23 by 2FIRSTS.ai
$200 Million Investment to Advance Smokeless Product Manufacturing at Reynolds
$200 Million Investment to Advance Smokeless Product Manufacturing at Reynolds
Reynolds American Inc. announced it will create 200 new manufacturing positions in 2026 at its Tobaccoville, North Carolina, Operations Center, bringing total new roles added over the past two years to more than 1,000. The company added 800 jobs between 2024 and 2025. These roles will support the continued growth of Velo Plus nicotine pouches and Reynolds’ expanding multi-category portfolio, aligned with its mission to build a smokeless world.
Dec.11 by 2FIRSTS.ai