South Carolina lawmakers are considering legislation that would cut the excise tax on heated tobacco products by more than half, arguing the devices pose lower health risks than traditional cigarettes and could help smokers transition away from combustible tobacco. Republican Sen. Tom Davis, chair of the Senate Labor, Commerce, and Industry Committee, said the products provide a similar experience to smoking but with fewer harmful chemicals, and argued the tax structure should reflect the relative risk compared with conventional cigarettes. The bill, introduced last year, imposes a separate excise tax on heated cigarettes of 25 cents per pack of 20, effectively cutting the HTP tax rate by 45 cents from the combustible rate of 70 cents per pack.
Public health groups oppose the proposal, with the American Heart Association warning that reducing taxes could encourage continued nicotine use or product switching rather than quitting. The bill would also introduce a new excise tax on vaping products of five cents per milliliter of vape liquid, as South Carolina currently has no tax on e-cigarettes. According to the state fiscal office, heated tobacco products are not currently sold in the state, though companies have marketed them there previously and could reenter the market if the legislation passes.
