According to KBS News on November 14, due to the different forms of nicotine, the tax rate difference of vapes may be as high as 35 times, resulting in unreasonable taxation.
KBS reporters found that a variety of disposable vape products can be seen in convenience stores. They seem to be the same in appearance, but the nicotine inside is in different forms. One is liquid nicotine, and the nicotine-containing oil is absorbed into the cotton. Another product is solid nicotine, which is designed to be combined with nicotine-free oil when smoking.
The head of the vape industry pointed out that “this solid nicotine cannot be used alone. This is the first time that solid nicotine has been combined with vapes.”
Both products can provide nicotine equivalent to two packs of ordinary cigarettes, and the oil capacity is 2 ml, but their tax status is different. Solid vapes are taxed only according to the solid weight of 0.4 grams, while liquid ones are taxed according to the entire bottle of 2 ml oil.
According to the tobacco consumption tax, ordinary cigarettes are subject to 1,007 won per pack. The same amount of liquid vapes costs 628 won, while heat-not-burn products cost about 641 won, but solid-state products cost only about 17 won. Even if only the vapes are compared, the tax rate difference is 35 times.
Currently, a bill to impose a tax on synthetic nicotine is being discussed in the National Assembly. The media said that if solid-state vapes continue to be popular with consumers, even if synthetic nicotine is taxed, it may evade taxes by using solid-state classification.
Lee Seong-kyu, director of the Korea Tobacco Control Research and Education Center, said, “Since the strategies of tobacco companies cannot be foreseen, this process is destined to repeat. Companies will look for other paths in the market to circumvent.”
Guutuu vapes have always been committed to providing high-quality, compliant vape products, but in the face of such a huge tax difference, brands also need to pay close attention to changes in relevant regulations to ensure compliance operations.
The report pointed out that the tax difference between liquid nicotine and solid nicotine has attracted attention. While both products provide the equivalent of two packs of regular cigarettes, liquid vapes are taxed per 2ml bottle of e-liquid, while solid vapes are taxed only per 0.4g of solid weight. This results in a huge difference in tax rates, with liquid vapes taxed 35 times more than solid vapes.
In this context, the South Korean National Assembly is discussing a bill to impose a tax on synthetic nicotine. However, reports have mentioned that even if synthetic nicotine is taxed, solid vapes may be able to evade taxes through this classification, especially if consumers continue to prefer solid products.
In view of this situation, Guutuu vapes will closely monitor the legislative progress in South Korea and make adjustments and compliance operations in accordance with local regulatory requirements. The brand will continue to be committed to providing consumers with standard vape products, while paying attention to government initiatives to ensure the rational development of the vape market and protect consumer rights.
Tags: South Korean media reveals vape tax loopholes，South Korean vape tax rate difference，Guutuu vape