S. Korea considering whether to hike taxes on e-cigarettes
  • 5 years ago
The South Korean government is reviewing whether the current tax rate on e-cigarettes is appropriate,... as a possible hike would lead to higher prices.
Our Lee Seung-jae takes a look at what this would mean for the increasing number of e-cigarette users in South Korea.

There are many types of cigarettes available to smokers these days.
However,... a new type is exploding in popularity.
Dubbed 'Juul',... the device looks like a USB storage device,... but contains liquid nicotine,... and is used like an e-cigarette.
Despite containing the same amount of nicotine as traditional cigarettes,... critics say the taxes levied on such products are too low.
While heated tobacco cigarettes are taxed at 90-percent of regular cigarettes,... these disposable e-cigarettes are taxed at less than half the amount imposed on traditional cigarettes.
Due to this difference in taxes,... the government has decided to use external services by the end of this year to conclude whether there's a problem with taxation equity between different types of tobacco.

If tax equity is an issue, we will review tax rate adjustments through consultations with related ministries.
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However, in terms of nicotine content,... one milliliter of liquid nicotine is equal to about 12-and-a-half cigarettes.
Based on these numbers,... if you calculate the tax on both cigarettes,... the liquid e-cigarette tax is roughly the same as traditional cigarettes.
Conclusions drawn on tax on different types of cigarettes depend on which standards are applied,... which is why it's difficult to calculate the right tax on these products.
The government says the latest discussion does not mean there will definitely be a tax increase on e-cigarettes,... nor do they plan to increase taxes on traditional cigarettes.
Lee Seung-jae, Arirang News.
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