Synthetic Nicotine Now Regarded as Tobacco
Definition of Tobacco to Be Revised
The amendment to the Tobacco Business Act, which classifies synthetic nicotine-an ingredient in liquid-type electronic cigarettes-as tobacco, passed its first hurdle in the National Assembly on September 22, 2025.
On this day, the National Assembly's Strategy and Finance Committee convened the Economic and Fiscal Subcommittee and approved the amendment containing these provisions.
The amendment expands the definition of tobacco from the previous "leaves of tobacco plants," which are the source of natural nicotine, to "tobacco or nicotine." As a result, synthetic nicotine, which has existed in a legal gray area, will now be subject to the same regulations as conventional tobacco.
Synthetic nicotine, which is less expensive than natural nicotine, has been used as a raw material for liquid-type electronic cigarettes. However, it was not classified as tobacco under current law and therefore was not taxed. Additionally, it could be sold near schools or through vending machines.
To minimize the impact on small business owners, the amendment includes provisions for the government to support liquid-type electronic cigarette retailers in switching businesses or closing down by utilizing policy funds for small businesses. It also temporarily suspends the imposition of excise taxes on synthetic nicotine electronic cigarettes. Furthermore, existing liquid-type cigarette businesses will be granted a two-year grace period for retail store distance restrictions.
The amendment to the Tobacco Business Act, having passed the subcommittee, is scheduled to proceed to the full session of the Strategy and Finance Committee, the Legislation and Judiciary Committee, and then to the plenary session of the National Assembly.
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