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.

BAT New Zealand Says Illicit Tobacco Trade Drove Nearly 29% Revenue Decline in 2025
BAT New Zealand Says Illicit Tobacco Trade Drove Nearly 29% Revenue Decline in 2025
British American Tobacco New Zealand said the illicit tobacco trade is responsible for its profit halving and revenue falling between the 2024 and 2025 financial years. Financial results filed with the Companies Office show that BAT Holdings (New Zealand) recorded 2025 revenue of NZ$180.7 million, or about US$106.95 million based on the European Central Bank’s April 27, 2026 reference rates, down from NZ$254 million, or about US$150.33 million, in 2024.
Apr.28 by 2FIRSTS.ai
Mexico’s Coahuila State Passes Vape Ban Covering Non-Nicotine Devices and Heated Tobacco Products
Mexico’s Coahuila State Passes Vape Ban Covering Non-Nicotine Devices and Heated Tobacco Products
The Congress of Coahuila in Mexico has approved a ban on the sale, use and promotion of vapes and similar devices, citing their harmful effects on health and the environment.
Mar.31 by 2FIRSTS.ai
German Environment Minister Plans Bill to Ban Disposable E-Cigarettes This Year
German Environment Minister Plans Bill to Ban Disposable E-Cigarettes This Year
German Federal Environment Minister Carsten Schneider said he is preparing legislation to ban disposable e-cigarettes and will present a bill this year. Industry data estimated that legal e-cigarette sales in Germany rose by about one quarter in 2025 to €2.4 billion. Refillable devices are not expected to be affected by the ban.
May.09 by 2FIRSTS.ai
FDA Warns Retailers Over Unauthorized Nicotine Pouches Resembling Candy and Everyday Products
FDA Warns Retailers Over Unauthorized Nicotine Pouches Resembling Candy and Everyday Products
The FDA issued warning letters to eight retailers selling unauthorized nicotine pouches and dissolvable tobacco products resembling candy, breath strips and cough drops. The action highlights rising scrutiny of packaging, youth appeal and accidental ingestion risks, as the agency clarifies enforcement priorities for unauthorized ENDS and nicotine pouch products while maintaining PMTA as the legal market pathway.
Special Report
May.21
2Firsts Hosts UK Vape Duty Stamp Compliance Exchange in Shenzhen
2Firsts Hosts UK Vape Duty Stamp Compliance Exchange in Shenzhen
2Firsts held a UK vape duty stamp compliance exchange in Shenzhen on May 14, bringing together representatives from nearly 20 companies. The session addressed Vaping Products Duty, duty stamp applications, UK agency qualifications and warehousing, while introducing 2Firsts Compliance Solutions’ UK service.
Events
May.17
California Bill Would Let Schools Include Nicotine in Student-Athlete Drug Screens
California Bill Would Let Schools Include Nicotine in Student-Athlete Drug Screens
California lawmakers are advancing a bill that would allow schools with existing student-athlete drug testing programs to include nicotine in those screenings.
Apr.09 by 2FIRSTS.ai