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S. Korea considering whether to hike taxes on e-cigarettes

2019-09-24 4 Dailymotion

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.<br />Our Lee Seung-jae takes a look at what this would mean for the increasing number of e-cigarette users in South Korea.<br /> <br /> There are many types of cigarettes available to smokers these days.<br />However,... a new type is exploding in popularity.<br />Dubbed 'Juul',... the device looks like a USB storage device,... but contains liquid nicotine,... and is used like an e-cigarette.<br />Despite containing the same amount of nicotine as traditional cigarettes,... critics say the taxes levied on such products are too low.<br />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.<br />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.<br /><br />If tax equity is an issue, we will review tax rate adjustments through consultations with related ministries.<br /> . <br /> However, in terms of nicotine content,... one milliliter of liquid nicotine is equal to about 12-and-a-half cigarettes. <br />Based on these numbers,... if you calculate the tax on both cigarettes,... the liquid e-cigarette tax is roughly the same as traditional cigarettes.<br />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.<br /> 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.<br />Lee Seung-jae, Arirang News. <br />

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