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.

Imperial Brands names John Rishton chair-designate, to take over as chair in December 2026
Imperial Brands names John Rishton chair-designate, to take over as chair in December 2026
Imperial Brands said in a statement on its website that John Rishton will join the board in July 2026 and assume the role of chair in December, succeeding current chair Thérèse Esperdy, who will retire at that time.
Jan.21 by 2FIRSTS.ai
Australian Government launches new phase of “Give Up For Good” to help people quit smoking and vaping
Australian Government launches new phase of “Give Up For Good” to help people quit smoking and vaping
On January 19, 2026, the Australian Government launched a new phase of the “Give Up For Good” campaign, adding resources and support for Australians looking to quit smoking and vaping.
Jan.19 by 2FIRSTS.ai
PMTA Manufacturing Panel Sees Small Firms Warn “Unknown Is Death” as FDA Defends Review Boundaries
PMTA Manufacturing Panel Sees Small Firms Warn “Unknown Is Death” as FDA Defends Review Boundaries
During FDA’s Feb 10 PMTA roundtable (manufacturing controls panel), small ENDS manufacturers warned that uncertainty in manufacturing expectations creates existential financial risk. FDA officials reiterated review flexibility is constrained by statutory and scientific boundaries. The panel debated testing standards, documentation requirements, open-system responsibility, supply chain changes, and software updates—highlighting unresolved PMTA challenges for small manufacturers.
Feb.11
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
China National Tobacco Corp paid $222 bln into state finances in 2025
China National Tobacco Corp paid $222 bln into state finances in 2025
China National Tobacco Corporation (CNTC) paid a record $222 billion into China’s state finances in 2025, according to official industry data.
Special Report
Jan.23
France’s ANSES warns vaping carries health risks, urges limiting e-cigarette use to smoking cessation
France’s ANSES warns vaping carries health risks, urges limiting e-cigarette use to smoking cessation
France’s National Agency for Food, Environmental and Occupational Health & Safety (ANSES) says vaping poses health risks because users inhale toxic or harmful substances, even if e-cigarettes are generally considered less harmful than cigarettes.
Feb.04 by 2FIRSTS.ai