Up to now, South Korea had categorized e-cigarettes differently than their combustible counterparts, hence iQOS is currently levied at a lower tax rate than the one imposed on regular cigarettes. However last July the government and the National Assembly agreed to increase the tax rate levied on HNB products to match the one imposed on ordinary ones.
New tax would increase e-cig prices to be on par with those of regular cigs
The proposed tax raise is of a significant 90%, which would equate to increasing the prices of PMI’s ‘Heets’ and BAT’s ‘Neostiks’, from the current 4,300 range to about 5,000 won (US$4,415) a pack. “We may have to consider raising the price per pack to over 5,000 won, if the government increases consumption taxes,” said a Philip Morris spokesperson.
According to assembly sources, if today the lawmakers decide on implementing the proposed tax, it would probably go into effect towards the end of December.
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