Colombian lawmakers have introduced a new bill to include e-cigarettes and oral nicotine products in the excise tax system. The bill proposes taxing e-cigarette liquids and nicotine pouches by volume and weight, respectively, and also imposes a 20% ad valorem tax. The new tax is expected to generate over $100 million in tax revenue in its first year, and the bill will enter the House of Representatives for consideration in August.

According to Infobae on July 31, Colombian Conservative MP Wadith Manzur recently submitted a bill that aims to extend the existing consumption tax on traditional cigarettes and tobacco to e-cigarettes.

Mr. Mansour stressed that the new taxes will be used to strengthen the public health systems in the provinces. He pointed out that the main goal of the project is to limit the public's exposure to these harmful products, especially young people, to protect them from nicotine addiction and long-term health risks.

The bill proposes that e-cigarettes be subject to excise taxes similar to those on traditional cigarettes, with two taxes proposed. The first tax would be 1,000 Colombian pesos (approximately US$0.25) per milliliter of e-cigarette liquid, and another 1,000 pesos per gram of oral nicotine products. The second tax would be an ad valorem tax, adding 20% to the sales price of e-cigarettes and other non-combustible tobacco products.

Mansoor said the tax will be adjusted based on annual changes in the Consumer Price Index (IPC) and will have progressive tax rates depending on nicotine content. In addition, the bill adds labeling and control measures for related products to curb tax evasion and smuggling.

The bill would also impose a 10% tax on other equipment used in hookahs and other similar devices.

Mansur believes the new policy will generate over 390 billion pesos (approximately US$100 million) in revenue for the national treasury in its first year of implementation, and expects this to increase to 502 billion pesos (approximately US$120 million) the following year. The project is expected to enter the House of Representatives review phase in August 2025.

Due to the volatility of the US and other markets, we Abufan have now also made Colombia a key target market. We will also work with e-cigarette users in Colombia to create a positive vaping environment.