Uruguay Blocks Tobacco Companies from Tax Benefits

The Uruguayan government, under President Yamandú Orsi, has introduced a new restriction on tobacco companies, prohibiting them from accessing tax benefits under the country’s Investment Promotion Regime. The new decree, signed by President Orsi and several ministers, reverses a 2020 decision by the previous administration of Luis Lacalle Pou that had allowed the tobacco industry to apply for these tax incentives.

The government justified the move based on “reasons of public order,” effectively reinstating a policy from the second government of the late Tabaré Vázquez, a president globally recognized for his frontal battle against the tobacco industry. The decree states that investment projects from tobacco industry companies currently pending resolution cannot be declared as “promoted” and thus will not receive the associated tax benefits.

This is the latest in a series of anti-tobacco measures taken by the Orsi administration since taking office. Three months prior, the government announced the reinstatement of a ban on the importation and sale of vapes and heated tobacco products, and also tightened rules around plain packaging for cigarettes, revoking other more lenient decrees from the Lacalle Pou era. At that time, President Orsi stated the decisions allowed Uruguay to resume its “historic course” as a global leader in tobacco control.

Official estimates highlight the severe health toll of smoking in Uruguay, where it is the leading cause of preventable death. Approximately 18 people die per day from tobacco consumption, and it is estimated that half of all smokers will die from a smoking-related cause.

• News source: Uruguay prohíbe a las empresas tabacaleras acceder a beneficios tributarios

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Matthew Ma

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With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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