Uruguay proposes excise tax on e-cigarettes

Local contact

EY Global

18 Jan 2022
Subject Tax Alert
Categories Indirect Tax
Jurisdictions Uruguay

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 (pdf) to Parliament proposing an excise tax on e-cigarettes.


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%.

The bill was sent to the Uruguayan Parliament on 17 December 2021, and it is currently under consideration by the Senate.

Further details will be reported as they occur.


For additional information with respect to this Alert, please contact the following:

EY Uruguay, Montevideo
  • Martha Roca

  • María Inés Eibe

Ernst & Young LLP (United States), Latin American Business Center, New York
  • Lucas Moreno
  • Ana Mingramm
  • Pablo Wejcman
  • Enrique Perez Grovas
Ernst & Young Abogados, Latin America Business Center, Madrid
  • Jaime Vargas
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Lourdes Libreros
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo

  • Luis Coronado, Singapore

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.