Uruguay proposes excise tax on e-cigarettes

The bill would impose an excise tax on e-cigarettes at a maximum rate of 70%. The Executive Branch, however, could increase the tax rate to 72%.

The Uruguayan Executive Branch sent a bill to Parliament proposing an excise tax on e-cigarettes.

Background

Decree 338/996 subjects the first sale of tobacco, cigars and cigarettes to an excise tax at a rate set by the Executive Branch in accordance with the maximum rate established under the law. E-cigarettes are currently excluded from the excise tax.

Proposed bill

The bill would broaden the definition of tobacco, cigars and cigarettes to include “other products of similar use.” The bill also would establish that the maximum applicable tax rate shall not exceed 70%, although the Executive Branch may increase the rate up to a maximum of 72%.

Source EY

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