Gov't to collect more taxes as e-cigarettes are legally classified as tobacco
December 03, 2025 by koreatimes.co.kr
Gov't to collect more taxes as e-cigarettes are legally classified as tobacco
A revised law now includes e-cigarettes in tobacco taxation to boost tax collection for financing fiscal policies. The National Assembly expanded the definition of tobacco to cover synthetic nicotine, aiming to generate an estimated 1 trillion won annually. The Ministry of Economy and Finance stated that the revised law encompasses all components of tobacco plants and nicotine. E-cigarettes will face tobacco taxes after a possible two-year grace period. The revision addresses a national tax shortfall and is vital for funding expansionary fiscal policies, as highlighted by the approved 2026 national budget increase to 727.9 trillion won.
