South Korea’s National Assembly is considering six proposals to control synthetic nicotine, including a new tax on vapes that could lead to a 3.5 – to five-fold increase in the price of tobacco oil and a backlash from the vape industry.
South Korea to include synthetic nicotine in tobacco regulation
According to AFP BB News, which reported on October 13, the South Korean National Assembly is actively pursuing the regulation of synthetic nicotine legislation, especially the setting of the vape tax rate.
According to the National Assembly Bill Information System, as of September 30, six proposals to amend the Tobacco Business Act aimed at bringing nicotine synthesis under the scope of regulation have been submitted to the National Assembly.
Prices of vape products may rise sharply
The Ministry of Health and the Ministry of Strategy and Finance are considering a policy to define synthetic nicotine as a cigarette. Once these amendments are passed, all products containing synthetic nicotine will be considered cigarettes and will be subject to both price and non-price regulations.
However, the vape industry strongly opposes this. According to the current weight tax system, the price of 30ml of tobacco tar products could soar from 20,000 won ($15) to 70,000 won ($52) to 100,000 won ($74). As a result, the industry argues that the tax system should shift from one based on soot capacity to one based on price.
Experts pointed out that if a uniform tax system is implemented for products with different nicotine content, the open vape market will face a huge impact. Meanwhile, synthetic nicotine products are scheduled to launch in November. “Tobacco in the UK and the US is also very concerned about control trends. In the face of allegations that it uses blank controls to sell products, the company said it supports appropriate controls for synthetic nicotine products.
The Korea Institute for Health Promotion and Development stressed that the current law does not provide a legal basis for regulating synthetic nicotine. From the point of view of protecting the health of the nation, all cigarette products need similar regulations.
