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Peru Parliament Considers Imposing up to 100% Tax on E-Cigarettes

Mar.20
Peru Parliament Considers Imposing up to 100% Tax on E-Cigarettes
Peru Parliament discusses bill to impose up to 100% tax on e-cigarettes, citing public health concerns. Youth usage at 15.9%.

Key Points Overview

 

  • The Peruvian Congress is currently discussing a bill that would include e-cigarettes in the range of products subject to a selective consumption tax (ISC). 
  • The bill proposes tax rates of 20% to 100% for e-cigarettes containing nicotine and those without nicotine. 
  • The final tax rates will be determined by the executive branch within 90 days of the law being published. 
  • The proposal states that the e-cigarette usage rate among Peruvians aged 11 to 21 is 15.9% in 2024, with an average starting age of 13.7 years old.

 

 

2Firsts, March 20, 2026

 

According to Infobae, the Congress of the Republic of Peru is currently considering a bill that aims to include e-cigarettes, both with and without nicotine, in the scope of selective consumption taxes, with rates as high as 100% of the retail price.

 

The bill proposes to impose a 20% to 100% excise tax rate on e-cigarettes

 

The bill was proposed by Congressman José Cueto to amend the Unified Text of the Value Added Tax and Selective Consumption Tax Law, in order to include electronic nicotine delivery systems (ENDS) and non-nicotine electronic systems (NNES) in the list of taxable goods.

 

According to the proposal, the relevant products may be subject to different taxation methods, such as ad valorem tax or specific tax, with tax rates ranging from 20% to 100%.

 

The final tax rate will be determined by the administrative department and must be finalized within 90 days after the announcement of the bill, along with the necessary accompanying regulations.

 

According to the proposal, the e-cigarette usage rate among individuals aged 11 to 21 is expected to reach 15.9% by 2024.

 

The bill will make public health one of the primary legislative foundations

 

The proposal states that the use of e-cigarettes is continuing to expand among the younger generation, potentially reversing the progress made in reducing smoking rates.

 

In 2024, the e-cigarette usage rate among Peruvian youth aged 11 to 21 reached 15.9%, with the average age of initial use of these products being 13.7 years old.

 

The proposal also points out that e-cigarettes are often marketed as "safer alternatives," but they contain potential toxic chemicals; nicotine is highly addictive and may affect the brain development of adolescents, while also increasing the risk of cardiovascular and respiratory diseases.

 

The bill also mentions that flavor design and marketing strategies have reduced risk perception and promoted the spread of e-cigarettes among youth demographics.

 

Image source: Infobae

 

References:
[1] Proyecto de ley busca aplicar impuestos de hasta el 100% al precio de venta de los vapeadores
Also Read:
[1] Peru Bans E-Cigarettes in Public Places, Introduces New Regulations
[2] Peruvian Congress Passes Laws to Control Tobacco and Nicotine Consumption

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