US Senators Propose Bill to End Tobacco Advertising Tax Subsidies

Feb.17.2023
US Senators Propose Bill to End Tobacco Advertising Tax Subsidies
Senators propose bill to end tax subsidies for e-cigarette and tobacco advertising to combat youth addiction.

On February 16th, Senators Jeanne Shaheen and Richard Blumenthal reintroduced the "No Tax Subsidies for E-Cigarette and Tobacco Ads Act" in Congress. The bill aims to crack down on e-cigarette companies and close a tax loophole that currently allows manufacturers to receive federal tax breaks on advertising expenses for e-cigarette and tobacco products.


In November 2022, federal data released by the US Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) revealed that over 3 million middle and high school students had used tobacco products in the past 30 days. The use of electronic cigarettes by teenagers has risen by 1800% from 2011 to 2019. More than 30% of teenagers who start using electronic cigarettes switch to traditional tobacco products within six months.


Currently, more than 25% of teenage e-cigarette users use their e-cigarettes every day. More than 85% of users prefer fruit flavors. Among students surveyed, 73.5% reported seeing e-cigarette content on social media.


Electronic cigarette and big tobacco companies must be held accountable for their advertising targeting young people. These dangerous products are fueling a public health crisis – especially among teenagers," said Shaheen. "Taxpayers should not foot the bill for these harmful marketing practices. That's why I am reintroducing this critical legislation, which would close a tax loophole that allows companies to write off their advertising costs and require responsibility from electronic cigarette companies.


The tax breaks for the tobacco and e-cigarette giants allowed the industry to profit from their manipulative marketing tactics. Our legislation has put an end to these loopholes, in order to protect children and other consumers from being lured into lifelong addiction," said Blumenthal. "I am proud to have worked alongside Senator Shaheen to prevent big tobacco companies from enticing the next generation.


According to federal law, television and radio advertisements for traditional tobacco products have been prohibited, and certain other forms of tobacco advertising are also restricted by the 1998 Tobacco Master Settlement Agreement. However, these restrictions do not apply to electronic cigarettes. While some television media have begun to pull electronic cigarette advertisements during broadcasts in response to the ongoing youth vaping crisis, other media are still airing these ads. To ensure equality between electronic cigarettes and traditional tobacco, the Shaheen and Blumenthal bill also prohibits tax breaks for advertising expenses related to cigarette rolling tobacco, cigars, snuff, chewing tobacco, pipe tobacco, and homemade cigarettes.


Senators Brown (D-OH), Reed (D-RI), Durbin (D-IL), and Merkley (D-OR) have also joined the ranks of sponsors for this reintroduced bill.


The full text of the legislation can be found here.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.
Sep.23
Product | PMI Launches ZYN Melts in UK, Extending ZYN Beyond Nicotine Pouches Into Dissolvable Tablets
Product | PMI Launches ZYN Melts in UK, Extending ZYN Beyond Nicotine Pouches Into Dissolvable Tablets
Philip Morris International (PMI) has launched ZYN Melts in the UK, introducing a fully dissolvable oral nicotine tablet format alongside the brand's existing nicotine pouches. The range includes Cool Mint and Peppermint, each offered at 1mg and 2mg of nicotine per tablet, creating four SKUs. Each can contains 20 tablets and is priced at £6.50 in the UK. Unlike ZYN nicotine pouches, Melts are placed between the upper lip and gum and dissolve completely during use.
News
Sep.29 by 2Firsts Perspectives
R.J. Reynolds Vapor Company Launches Flavored Vuse Pro Pods in U.S. Without FDA Marketing Authorization
R.J. Reynolds Vapor Company Launches Flavored Vuse Pro Pods in U.S. Without FDA Marketing Authorization
R.J. Reynolds Vapor Company has begun selling four flavored Vuse Pro pods — Peach, Berry, Watermelon and Fresh Mint — in Ohio and selected other U.S. markets. According to the Vuse U.S. FAQ, Vuse Pro contains approximately 5.0% nicotine by weight, and Vuse Pro pre-filled pods are intended for use with Vuse Alto devices. Reynolds told 2Firsts that product labeling lists an e-liquid capacity of 2.0 mL per pod. The Vuse Alto Power Unit received FDA marketing authorization in 2024, while the new Vuse Pro pods themselves have not received marketing granted orders. The rollout follows the FDA’s May 2026 revision of enforcement priorities for certain unauthorized vaping products with qualifying pending applications.
BAT
Sep.10
Senate Democrat Wyden Probes Trump Administration Vape Policy Shift, Seeks Records From HHS and Reynolds American
Senate Democrat Wyden Probes Trump Administration Vape Policy Shift, Seeks Records From HHS and Reynolds American
U.S. Senator Ron Wyden, the Democratic ranking member of the Senate Finance Committee, has launched an investigation into flavored vape policy changes and requested records from the Department of Health and Human Services (HHS), Reynolds American and Botanic Tonics. The investigation focuses on a timeline involving Reynolds American’s $5 million donation to MAGA Inc. in April 2026 and subsequent vape policy developments. Wyden said the review aims to examine potential links between political donations, corporate communications and government decisions. The investigation does not represent a finding of wrongdoing.
Innovation
Aug.07 by 2Firsts Perspectives
Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Kelly White Bets on Female Consumers as Nicotine Pouch Competition Intensifies | 2Firsts Interview
Swedish nicotine pouch brand Kelly White is building its strategy around adult female consumers. Founder and CEO Sophia Wilsby told 2Firsts that women accounted for around 70% of the brand’s repeat customers on HAYPP in Sweden in 2025. The interview explores female consumer segmentation, product and design differentiation, gender stereotypes, packaging regulation, and how independent brands can compete with global players such as ZYN and VELO while considering funding, partnerships and future ownership options.
Business
Sep.24
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
German prosecutors and customs authorities are conducting a criminal investigation into an alleged cross-border organised vape network. Authorities say that between January 2024 and March 2025, four employees of an unnamed Chinese e-cigarette manufacturer allegedly built a network of sales agents and wholesalers that brought more than 7.6 million nicotine disposable vapes into Germany, causing an estimated €33.3 million in excise-tax losses. The manufacturer has not been named. Some products visible in enforcement images have packaging resembling products from FUMOT’s portfolio. European regulatory records from 2024, FUMOT’s public overseas-sales materials and records involving German vape importer and distribution company Zamu-Pro GmbH also show FUMOT/RandM products and German distribution activity during the period covered by the investigation.
Sep.21