According to a report by infobae on January 20th, the "Internal Tax" section of Argentina's "Comprehensive Bill" has once again sparked a fierce controversy in the tobacco industry. The bill adjusts the cigarette tax and imposes a 20% tax on non-tobacco products such as e-cigarettes. This measure has affected hundreds of thousands of tobacco sales points and millions of smokers, causing concern in the domestic tobacco market.
According to Articles 189 to 198 of the Comprehensive Bill, there will be changes in cigarette taxes, along with the implementation of a 20% tax on non-tobacco nicotine devices.
Local companies such as Sarandí Tobacco Company have raised questions and voiced concerns regarding this development, arguing that it favors foreign tobacco companies. International tobacco companies, on the other hand, have stated that they will closely monitor future sales trends as this could potentially impact their global business strategies.
At the same time, the use of e-cigarettes and vaporizers has raised concerns among medical experts, as the risks associated with cardiovascular diseases, oral cancer, and respiratory diseases are gradually increasing, particularly among adolescents. The Argentine Cardiology Society has pointed out that these devices may result in various health issues, including hypertension, arrhythmias, periodontal diseases, and oral cancer.
The comprehensive bill will raise internal tobacco tax rates to 73% and eliminate the provision of "minimum tax," sparking controversy among domestic and international tobacco companies. Sarandi Company claimed that the new model favors multinational corporations, while multinational corporations argue that it is necessary to eliminate the advantage of local companies not paying the minimum tax.
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