South Korean Ministry of Economy and Finance Denies Pushing for Amendments to Tobacco Business Act or Tax Measures to Fill Fiscal Gap

Nov.13.2024
South Korean Ministry of Economy and Finance Denies Pushing for Amendments to Tobacco Business Act or Tax Measures to Fill Fiscal Gap
The South Korean Ministry of Economy and Finance has denied rumors that e-cigarette taxes would be used to fill the fiscal gap, emphasizing that the authority to make taxation decisions lies with the National Assembly and that the related legislative process is unrelated to the fiscal deficit.

According to a report on Korea.KR, the official South Korean e-government website, on November 12, there were previous reports suggesting that a study on the harmful effects of vapes, initiated by the South Korean government, could potentially be used as the basis for vape taxation. Some viewpoints speculated that this could be preparation for "filling the tax revenue gap." (Read more: South Korea speeds up synthetic nicotine legislation, regulatory report due year-end)

 

In response, the Ministry of Planning and Finance clarified that the decision on the taxation of synthetic nicotine vapes falls within the legislative domain of the National Assembly. The reports claiming that the government is pushing for amendments to the Tobacco Business Act and strengthening taxation to fill the fiscal gap are false.

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