Colombia Proposes New Bill: E-cigarettes to Be Included in Consumption Tax System, First Year Tax Revenue Expected to Exceed $100 Million

Colombia Proposes New Bill: E-cigarettes to Be Included in Consumption Tax System, First Year Tax Revenue Expected to Exceed $100 Million

Recently, Colombian conservative party member Wadith Manzur introduced a new bill proposing the inclusion of e-cigarettes and oral nicotine products in the country’s consumption tax system. This bill not only focuses on tax adjustments but also addresses black market control, public health funding, and the protection of youth health. It is expected to have a profound impact on Colombia’s e-cigarette market and fiscal situation.

Core of the Bill: Tax Adjustments and Market Impact

1. Tax Rate Structure
   According to the bill, e-cigarette liquids and oral nicotine products will be taxed based on volume (1,000 Colombian pesos per milliliter, approximately $0.25) and weight (1,000 pesos per gram). Additionally, e-cigarettes and non-combustible tobacco products will face a 20% ad valorem tax, with some nicotine products taxed at rates as high as 28%. Traditional cigarette tax rates will increase from 10% to 15%, with a progressive tax structure.

2. Fighting the Black Market, Strengthening Oversight
   To prevent tax evasion and smuggling, the bill proposes stronger product labeling and control measures. This initiative aims to ensure that legal products are correctly identified and to combat illegal trading.

3. Increased Public Health Funding, Protecting Youth Health
   Manzur emphasized that the additional tax revenue will be used to strengthen the public health systems of the provinces, with a focus on protecting young people’s health. The goal is to reduce their exposure to nicotine products and help curb addiction problems.

Tax Revenue Goals and Economic Projections

It is estimated that the bill will generate 390 billion Colombian pesos (approximately $100 million) in tax revenue during its first year of implementation. As tax rates gradually increase, the revenue is expected to rise to 502 billion pesos (approximately $120 million) in the second year. These funds will be used for public health investments, promoting the government's comprehensive governance in the health sector.

Policy Implementation Timeline

The bill is expected to be introduced to the Colombian House of Representatives for discussion in August 2025. If approved, the policy will be implemented by the end of the year, and the e-cigarette and oral nicotine product markets in Colombia will face a new tax regulatory framework.

iPure's Response and Outlook

As a leading company in the e-liquid (vape juice) industry, iPure is closely monitoring global changes in the e-cigarette market’s regulatory landscape and is committed to providing high-quality products that comply with local laws and regulations. With the introduction of Colombia’s new bill, iPure will actively follow the policy implementation process and adjust its product strategy flexibly according to market demand.

We will continue to optimize product quality to ensure compliance with new regulations and strive to promote a healthy and sustainable development of the e-cigarette industry. Meanwhile, iPure will continue to monitor changes in consumer demands and provide products that better meet these needs.

Conclusion: Industry Challenges and Opportunities

This bill in Colombia will have a profound impact on the e-cigarette industry and will bring about positive changes in public health and fiscal policy. With tax rates increasing and oversight strengthening, the e-cigarette market will face more challenges, particularly in terms of pricing and compliance, but it will also bring more growth opportunities.

iPure will continue to monitor the latest policy developments and strive to bring more health and sustainable development opportunities to the industry, consumers, and society.

Disclaimer

The information provided in this article is for reference purposes only. All content is sourced from publicly available channels or third-party reports. iPure does not assume any responsibility for the accuracy, completeness, or timeliness of the policies, regulations, or their impacts mentioned in this article. Policy changes may be influenced by local government, regulations, and market conditions. Readers are advised to verify the latest information before making any decisions.

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