South Korea

Background: The Republic of South Korea first taxed electronic cigarettes in 2011. However, No special tax category for heated tobacco products was introduced until amendments to the Local Tax Act were approved on 27 December 2016.

The reform of the Local Tax Act introduced a new tax category: inhaling tobacco products using electronic devices. The amended Local Tax Act applied the Tobacco Consumption Tax (Chapter 5 of the Act) to heated tobacco at the rate of KRW 88 per gram of tobacco mixture.

The Education Tax, an earmarked duty proscribed by the Local Tax Act (Chapter 12), was introduced at the rate of KRW 38.7 per gram. Article 151 (tax base and tax rates) sets the rate at 43.99% of the amount of consumption tax to be paid pursuant to the (Local Tax) Act.

The new tax and rates came into effect on 1 January 2017.



Categorised in: Country, Earmarked taxes, Excise tax, Heated tobacco, South Korea

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