Industry Thinks Korean Officials may Raise Vape Taxes
Credit: CESM I Studio
The vaping and tobacco industries in South Korea are speculating that the government could raise taxes on e-cigarettes to increase tax revenue.
Even after officials faced fierce backlash from the sector and smokers, the country’s finance minister still commented on the possibility.
The remark was made by the country’s Economy and Finance Minister Choo Kyung-ho in a plenary session at the National Assembly on April 17, according to Pulse News.
In the session, lawmaker Bae Jun-young asked Choo a question about the government’s stance on taxing e-cigarettes, saying that “cig-a-like e-cigarettes contain harmful toxins like regular cigarettes.”
“I was aware that some officials from the Ministry of Health and Welfare recommended that e-cigarettes be classified as tobacco products, like other regular cigarettes,” said Choo, indicating that “cig-a-like e-cigarettes” should be taxed at a rate equivalent to taxes on regular tobacco products if the two have the same level of harmful effects on the human body.
The Ministry of Economy and Finance said that “there is no consideration on raising tax on e-cigarettes.”
Vaping products are currently taxed lower than regular nicotine delivery systems. For regular cigarettes priced at 4,500won ($3.39) per pack, the government levies a tax of 3,323won, including a special consumption tax of 594won and excise tax.
For e-cigarettes, however, the tax amounts to only 90 percent of the regular tax at 3,004won.
