The South Carolina State legislature in the United States initially reviewed a heated tobacco tax rate bill, proposing to set a lower tax rate than traditional cigarettes, which has sparked opposition from public health organizations. Philip Morris International supports the bill and plans to sell its product IQOS within the state, emphasizing that it is only available to adults. The bill has passed the initial review of a panel of the House of Representatives, but the possibility of completing the legislation during this legislative term is relatively low.
Key points:
- The state of South Carolina in the United States plans to establish an independent tax rate for heated tobacco products, with a tax burden much lower than that of traditional cigarettes.
- Public health organizations are concerned about the exposure risks for teenagers and oppose lowering tax rates. Industry supporters consider it a safer alternative.
- PMI plans to sell IQOS products in the state, only for adult smokers.
- The bill has passed the initial review, with only one opposing vote. Due to the limited duration of the session, the possibility of its passage in the short term is not high.
- Currently, IQOS is only legally sold in Texas, and there are no sales records in South Carolina.
PMI to sell IQOS in South Carolina, USA
According to Live5news on April 24th, the South Carolina State Assembly in the United States held a preliminary hearing on a bill (H.4303) regarding the heating of tobacco products. The bill proposes to set a dedicated tax rate for heated tobacco products, which is much lower than that for traditional cigarettes. This has sparked opposition from public health groups, while also gaining support from some legislators and industry representatives.
At present, only the heated tobacco product IQOS under Philip Morris International (PMI) in the United States has been authorized by the FDA for sale on the market. And Texas is the only state where this product can be purchased. There are currently no sales records of such products in South Carolina, but supporters of the bill believe that market entry is imminent.
Beth Johnson, a representative of the American Cancer Society, said that although heated tobacco products have not yet been sold in South Carolina, their introduction is imperative and policy intervention should be carried out as early as possible to prevent teenagers from being exposed. The association opposes setting a lower tax rate for heated tobacco products than traditional cigarettes, emphasizing that price policies are an effective means to reduce tobacco use.
Council proposes a low tax rate to regulate heated tobacco products
Johnson told the lawmakers at the hearing,
- We hope that you will treat these products in the same way as traditional cigarettes and tax them at the same rate.
Jake Jacobs, a representative of Philip Morris International (PMI), stated at the hearing that in the future, they hope to sell heated tobacco products in convenience stores and retail channels in the state and promised to market them only to adult smokers.
However, the bill has also been questioned by some lawmakers. Heather Crawford, a Republican Congressman from Horry County, said,
- I’m worried that the way we bring this product to the public is by claiming it to be “95% safe”, which might unintentionally encourage a new generation to form an unsafe new habit.
The bill passed the initial vote of the subcommittee under the state House Ways and Means Committee on April 23. With less than two weeks left until the state’s 2025 legislative session, the possibility of the bill being delivered to the governor’s office at this session is relatively low.
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