According to N news, a recent report released by the Legislative Investigation Office of the South Korean National Assembly pointed out that to address current tax fairness issues and potential health risks, synthetic nicotine vapes should be included in the scope of tobacco tax.
South Korean legislation advances regulation of synthetic nicotine vapes
Under current South Korean law, cigarettes are defined as commodities based on tobacco leaves, stems, and roots and synthetic nicotine vapes are not included in the tobacco definition because they do not use tobacco raw materials. As a result, synthetic nicotine vapes are not subject to tobacco taxes in South Korea and are not supervised by cigarette-related laws and regulations. The Legislative Investigation Office of the National Assembly of South Korea believes that this legal loophole violates the principle of tax fairness and ignores the health risks of synthetic nicotine vapes.
Four years have resulted in a cumulative loss of approximately $24.56 billion in tax revenue
According to the National Assembly’s Legislative Investigation Office. South Korea has lost about 3.3895 trillion won (about 24.56 billion U.S. dollars) in tax revenue over the past four years due to the non-payment of taxes on synthetic nicotine vapes. In 2021, South Korea did not levy 535.8 billion won (about $3.969 billion) in taxes on synthetic nicotine vapes, and by 2023, this figure has increased to 1.1249 trillion won (about $7.841 billion). In addition, the health risks of synthetic nicotine vapes are also of high concern. Because it is not controlled by tobacco laws and regulations, synthetic nicotine vapes can be sold online
At present, most countries in the world have controlled synthetic nicotine vapes. The World Health Organization (WHO) recommends that vapes should be subject to the same strict regulation as traditional tobacco. In the world, 34 countries have banned the sale of vapes, and 121 countries have implemented advertising bans or tax policies. Since April 2022, the United States has classified synthetic nicotine as a tobacco commodity and banned its sale to people under the age of 21.
Late last year. South Korea’s Ministry of Planning and Finance submitted a proposal to the National Assembly’s Planning and Finance Committee to oversee synthetic nicotine. However, due to the volatile domestic political situation in South Korea, the promotion of relevant regulatory measures has been affected to a certain extent.
The Chinese translation is for reference only and the original English references shall prevail.
