End Tobacco Loopholes Act

Tax Parity Among Tobacco Products: The bill aims to provide tax rate parity among all tobacco products, such as increasing taxes on roll-your-own tobacco (Section 2(a)), pipe tobacco (Section 2(b)), and smokeless tobacco (Section 2(c)).

New Tax on Nicotine: A tax will be imposed on taxable nicotine that has been manufactured in or imported into the United States (Section 2(g)(1)).

Inflation Adjustments: Tax rates will be adjusted for inflation in calendar years beginning after 2025 to account for the cost of living (Section 2(i)).

Tax Exceptions for Medical Use: Nicotine used in drugs approved by the FDA or certain combination products will not be subject to the taxable nicotine definition (Section 2(g)(2)(A)).

Business Transition Support: Individuals lawfully engaged in the business of manufacturing or importing taxable nicotine who apply within 90 days after enactment will not be denied the right to carry on their business while applications are pending (Section 2(l)).

Increased Costs for Tobacco Products: Consumers will face higher prices due to increased excise taxes on cigarettes (Section 2(h)), roll-your-own tobacco (Section 2(a)), pipe tobacco (Section 2(b)), smokeless tobacco (Section 2(c)), and small and large cigars (Section 2(d) and 2(e)).

New Tax on Nicotine: A new tax will be imposed on any nicotine that is extracted, concentrated, or synthesized (Section 2(g)(2)).

Tax on Discrete Single-Use Units: A specific tax of $100.66 per thousand will be applied to discrete single-use units, which include products like lozenges, tablets, or pouches (Section 2(c)(1)(C)).

Floor Stocks Tax: A tax will be imposed on tobacco products held for sale that were manufactured or imported before the tax increase dates (Section 2(j)(1)).