Tax Rate Is 6.6 Times Higher Than Traditional Cigarettes! Korea Vaping Association Files Constitutio

Recently, the Korea Vaping Association announced that it plans to file a constitutional lawsuit over the tax rate imposed on smokeless tobacco product Dipping tobacco (i.e. moist snuff).

The association argues that although this product is less harmful, its tax rate is 6.6 times higher than that of traditional cigarettes.

Unlike cigarettes, which are taxed per 20 sticks, Dipping tobacco is taxed by the gram.

Converted to the equivalent of 20 cigarettes, 20 pouches of Dipping tobacco would incur taxes of 19,000 won. By comparison, the tax on a standard pack of 20 cigarettes is 2,885 won.

The industry association emphasized that Dipping tobacco was the first modified-risk tobacco product approved by the U.S. Food and Drug Administration in 2019. The group said the FDA has acknowledged that, scientifically, it is accurate that using these products as an alternative to cigarettes “can reduce the risk of oral cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis.”

The group also stated: “Dipping tobacco does not produce smoke, so there is no harm from secondhand smoke.” It added: “Korea’s tax rate on Dipping tobacco is 17 times higher than in countries such as Japan and Sweden, which consider Dipping tobacco to be less harmful.”