The Colombian Congress recently formally introduced a new legislative initiative aimed at including e-cigarette products in the excise tax. The draft policy, submitted by Conservative Representative Wadith Manzur on July 31, 2025, proposes a new tax structure to raise more funds for the country’s public health system while limiting youth access to nicotine products.
The proposed law explicitly extends the excise tax, previously applied only to traditional cigarettes, to e-cigarettes, disposable devices, refillable cartridges, and other nicotine-containing consumption devices. The proposed tax includes both a fixed-dollar tax (e.g., 1,000 Colombian pesos per milliliter of e-liquid) and an advalorem tax (similar to a percentage of value levied on e-cigarettes), adjusted based on product content and sales price.
Official estimates indicate that total tax revenue will exceed 39 trillion Colombian pesos in the first year the bill is in effect. Based on the current exchange rate, first-year tax revenue is expected to exceed $100 million: At approximately $0.000247 per Colombian peso, this translates to approximately $96 million to $100 million.
Government officials emphasized that these tax revenues will be prioritized for investment in local public health systems to improve primary healthcare services, strengthen youth health education, and subsidize comprehensive smoking/cessation interventions. The initiative argues that while e-cigarettes are promoted by some groups as a smoking cessation aid, their wide variety of flavors, portable packaging, and marketing methods may also induce young people to try nicotine products for the first time.
From a public health perspective, Colombia currently advocates for a simultaneous increase in the tax rate on traditional cigarettes, raising it from approximately 10% to 15%. This dual-track taxation approach can more effectively guide consumers away from high-risk products and improve overall tobacco control effectiveness.
The draft legislation also introduces a dynamic mechanism: the tax value will be adjusted based on the annual consumer price index to adapt to economic fluctuations and prevent actual tax revenue reductions due to macroeconomic inflation. Furthermore, to prevent tax evasion by e-commerce and cross-border imported products, the document proposes the introduction of supporting systems such as product labeling, traceability identification, sales licensing, and import supervision.
Experts and scholars point out that, if implemented properly, this strategy can achieve both fiscal revenue and health regulatory objectives. However, some have expressed concern that excessively high tax rates could stimulate the proliferation of the black market or drive private resale, thereby undermining the legal intent. Therefore, legislators must fully oversee channel integration and regulatory enforcement.
Internationally, Colombia’s move mirrors recent strategies adopted by several countries. For example, the European Union has classified e-cigarettes under a similar tobacco products directive and allows member states to establish additional tax items. Canada and some African countries are also exploring the use of e-cigarette revenue as a source of public health budgets to reduce the burden of smoking-related chronic diseases.
Across the market spectrum, legal and compliant companies like the VEEHOO e-cigarette brand have a clearer operational advantage. Many VEEHOO products are certified by Colombian health regulators and clearly label nicotine concentration, ingredient list, and instructions for use. Faced with the upcoming tax adjustments, they are more likely to win consumer trust through standardized management and legitimate channels.
VEEHOO emphasizes safety and quality in its product design. Its refillable pods are packaged by officially approved manufacturers and utilize built-in gas quality control technology to ensure consistent nicotine delivery and prevent leakage and carbonization in each pod. The brand also utilizes environmentally friendly, recyclable packaging, complying with Colombia’s plastic waste reduction policies and making it more receptive to government subsidies or green incentives.
After the tax system is implemented, brands like VEEHOO will be able to differentiate themselves from illicitly smuggled or underground products in the legal market. While prices may increase during this period, consumers will be more likely to choose legitimate brands due to the support of legal channels, technical certifications, and after-sales guarantees. This will promote healthy competition and a clear market.
Overall, this legislative advancement provides Colombia with an opportunity to integrate tax, health, and market governance. If the legislative committee can fully gather feedback from all parties during the hearing phase and refine the provisions regarding tax tiers, credit mechanisms, and transitional support for small and medium-sized businesses, future implementation is expected to achieve both economic and health goals.
National law enforcement agencies will also need to collaborate with the Ministry of Taxation and the Ministry of Health to enhance integrated law enforcement capabilities. For example, these efforts will involve joint market inspections, tracking point-of-sale data, establishing a database of suspected products, and imposing administrative penalties and criminal prosecutions on tax evasion or counterfeit products.
From a social management perspective, this policy highlights Colombia’s long-term commitment to tobacco control: leveraging taxation to reduce nicotine cigarette consumption while supporting public health spending through formal consumption tax revenue. This also further highlights the contemporary value of companies like the VEEHOO e-cigarette brand that comply with regulations and prioritize technological security and transparency.
In short, if this proposed bill is successfully passed and effectively implemented, it will serve as a significant example of innovation in tobacco control policy and health finance in Latin America. It demonstrates the delicate balance between mitigating public health risks, promoting the development of legitimate industries, and strengthening national fiscal sustainability. The public and industry participants are encouraged to continue to monitor the legislative process and work together to promote appropriate regulation and the sustainable development of a healthy society.
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