Where will vape go under heavy taxes?
In recent years, the vape industry has rapidly expanded by relying on its advantages over traditional cigarettes. Just when many people thought that vape would be able to eliminate cigarettes in the future, bans on the sale of vapes have been introduced in various countries, including China’s Internet ban. Sales orders, various prohibitions and the introduction of standards have frustrated the rapid development of vape. In addition to the ban, there is actually another policy that will seriously hinder the development of vape, that is, the high vape tax. The high vape tax is mainly for e-liquid, and e-liquid It is also a consumable, which will bring a serious economic burden to vape users.
How does vape collect taxes? This is a technical activity. The vape smoking set is an electronic product, and it is not a consumable. One may be used for many years, so it is obviously impossible to collect heavy taxes on vape smoking set. Then the rest is to collect heavy taxes on e-liquid. e-liquid is a consumable. To use vape, you cannot do without e-liquid, and e-liquid contains nicotine, which is included in the heavy tax. Excuses.
The high tax on e-liquid reflects the details, because e-liquid is simply a physical mixture of several common substances. Ordinary individuals can purchase vegetable glycerin, propylene glycol, and food flavors to make them suitable for themselves. E-liquid, and there are a lot of e-liquid tutorials and flavor recipes online. So nicotine is the key, and only by controlling nicotine can taxes be collected.
Nicotine is a highly toxic substance. It is originally under the control of the government. It is also the most important substance that vape can provide to relieve addiction. Therefore, it is the most suitable way to measure e-liquid tax by using nicotine content.
With so many nicotine manufacturers around the world, how can the government effectively control it? The way is to authorize. Only when nicotine from an authorized manufacturer is purchased, e-liquid manufacturer or vape manufacturer’s products can be sold in the country, and the amount of nicotine sold has been registered when the nicotine leaves the factory. By calculating the cartridge or e- The nicotine content in liquid cannot be sold again when the sales volume reaches the factory setting value. In this way, the government only needs to cooperate with one or two nicotine manufacturers to control the amount of nicotine and effectively collect high vape taxes.
Last year, the US House Ways and Means Committee approved the vape tax collection bill, which will be the first tax imposed on nicotine liquid in the United States. The purpose is to prevent young people from using vape, because this can increase the price of vape products to a level that young people cannot afford.
In fact, I am not commenting on the use of high taxes to prevent teenagers from using this statement. I think that minors now spend more money than our adults. Adults still have the burden of their families. If the vape is heavily taxed, it may be transferred to attract people. There are traditional cigarettes, but minors are naturally interested in new things and like to compare. Even if the vape is high, they will buy it. So I think that after the high vape tax is popularized, minors’ vape The proportion of users may be higher.
The New York Democratic Party representative Tom Suozzi, who initiated the vape tax legislation in the United States, said in a statement: "The increase in the cost of vape will be directly related to the reduction in the use of vape products." In addition, US taxation The joint committee also pointed out that once the new law is passed and implemented, it will bring nearly 10 billion U.S. dollars in revenue to the federal government in the next 10 years. Obviously, it is obvious that the problem of young people is obvious. Taxes are the most important thing. It is really to prevent young people from using e- Cigarette and legislation, your legislative results should be how much less people use vape after the bill is promulgated, not how much tax it brings to the government.
Compared with cigarettes, the current cost of vape has no advantage. A 300-puff cartridge is about 30, and a pack of cigarettes is about 300. A cartridge is equivalent to the price of a pack of high-end cigarettes. If heavy taxes are imposed again, vape will be completely at a disadvantage in terms of replacing cigarettes. So I think the future of vape, which is taxed heavily, is difficult.