A new bill filed in the Colombian Congress by Conservative Party Representative Wadith Manzur seeks to impose two new taxes on vaping products, aiming to raise over $390 billion pesos in its first year. The initiative, expected to be debated starting August 20th, aims to protect public health, particularly among youth, by increasing the cost and control of these devices.
The proposal would expand the existing consumption tax on traditional cigarettes to include all non-combustible nicotine and tobacco products, such as e-cigarettes, heated tobacco, and the devices required for their use. Manzur explained the bill establishes two new taxes for vapes, similar to the structure for cigarettes: a specific component tax and an ad valorem tax, in addition to the existing VAT. The goal is to ensure the total tax burden does not exceed 55% of the product's pre-tax value.
The proposed specific component tax would be $1,000 pesos per milliliter of vaping liquid (with or without nicotine) and $1,000 pesos per gram of oral or dermal nicotine products like pouches or patches. This tax would be adjusted annually based on inflation plus 4%.
The new ad valorem tax would apply a percentage to the retail price:
- 20% on liquid solutions for e-cigarettes (including disposables).
- 28% on oral, dermal, or transdermal nicotine products (patches, gels, etc.).
- 10% on the hardware itself (vaporizers, heating systems, hookahs).
The bill also proposes raising the ad valorem tax on traditional cigarettes from 10% to 15%. Revenue from the new taxes would be directed towards strengthening departmental health systems. The initiative has garnered support from various social and political sectors, including mothers concerned about the impact of these devices on the nation's youth.
