On 20 October 2017, the Assembly Strategy and Finance Subcommittee of Korea passed a revised bill to increase the excise tax levied on a pack of 20 heat-not-burn (HNB) e-cigarettes sticks to 529 won from the current 126 won. The tax increase will enter into force after approval by the Strategy and Finance Committee of the National Assembly in early November.
Korea will increase the tax on e-cigarettes from 50% to 90% following approval by the lawmakers, which means that the price of a pack of 20 e-cigarette sticks could increase by 403 won ($ 0.36).
Lawmakers are now planning to increase other taxes imposed on HNB cigarettes, such as an excise tax, a health promotion fee and a local education tax, to the extent that they equal to 89 percent of the taxes imposed on conventional cigarettes.
Other tax increases are also included in the bill. A tobacco consumption tax, currently 528 won per pack, could rise to 897 won, and a national health promotion fee will likely gain 750 won from 438 won.
The taxes would be effective as early as December 2017.
