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Liquid E-Cigarette Prices to Triple as New Taxes Take Effect
🇰🇷 South Korea /Economy & Trade

Liquid E-Cigarette Prices to Triple as New Taxes Take Effect

From Dong-A Ilbo · (6h ago) Korean Critical tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Starting June 24, liquid electronic cigarettes will see a significant price increase, jumping from approximately 10,000 won to over 30,000 won.
  • This price hike is due to the revised Tobacco Business Act, which legally defines liquid e-cigarettes containing synthetic nicotine as "tobacco" and subjects them to taxation.
  • While a 50% tax reduction will be temporarily applied for two years to ease the burden on businesses, the new regulations also introduce stricter sales, labeling, and advertising rules.

The Dong-A Ilbo reports on a significant shift in the taxation and regulation of liquid electronic cigarettes, effective June 24. This change, driven by the revised Tobacco Business Act, reclassifies products containing synthetic nicotine as legal tobacco, thereby imposing the same tax rates as traditional cigarettes. This move is expected to dramatically increase the price of liquid e-cigarettes, with a 30ml bottle, previously costing around 10,000 won, now facing an additional tax burden of approximately 27,000 won, pushing the total price to over 30,000 won.

The price of liquid electronic cigarettes, currently around 10,000 won, will significantly increase to over 30,000 won starting June 24.

Highlighting the immediate price impact of the new regulations.

The core of this legislative change lies in broadening the definition of "tobacco" to include not only tobacco leaves but also nicotine itself, whether natural or synthetic. This aligns liquid e-cigarettes with conventional tobacco products in terms of taxation and regulation. While the government has introduced a temporary 50% tax reduction for two years to mitigate the immediate impact on the industry and consumers, the long-term implications are substantial.

The core of this revised bill is the expansion of the definition of tobacco from 'tobacco leaves' to 'tobacco (leaves, stems, roots) and nicotine (natural and synthetic).'

Explaining the legal reclassification of e-cigarettes.

From a South Korean perspective, this is a significant public health and fiscal policy adjustment. The government's decision reflects a growing concern over the potential health impacts of e-cigarettes and a desire to capture tax revenue from a burgeoning market. The Dong-A Ilbo notes that this move brings South Korea in line with global trends where vaping products are increasingly scrutinized and regulated. The introduction of health warnings and nicotine content labeling, along with restrictions on online sales and marketing to minors, signals a more cautious approach to the product. This policy aims to curb youth access and inform consumers more accurately, aligning with national public health objectives.

Starting June 24, the same tax rates will apply to synthetic nicotine products as to natural nicotine products.

Detailing the application of tax rates.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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