US TAX HIKE CONTINUES
In spite of pleas from vaping advocates , US policymakers made resolutions to introduce further taxes on e-cigarettes .
Words : Jordan Millar
Oregon A series of vaping and cigarette tax increases are set to roll out in 2021 after the state voted to introduce taxes on e-cigarettes for the first time . The motion will align Oregon more closely with Washington and California with regards to cigarette taxation , with packs seeing a $ 2 - $ 2.50 increase while vaping products will be taxed at 65 percent of their wholesale purchase price , a change that has raised alarm with local vendors .
Maryland Lawmakers in Baltimore want to introduce a 30 percent excise tax on the distribution of all electronic smoking devices . While supporters of the bill claim it could have significant health benefits for the city , critics have stressed that it could have the opposite effect . “ Taxing vapor products like combustible cigarettes … is a move in the wrong direction ,” said Consumer Advocates for Smoke Free Alternatives Association CEO , Alex Clark . “ Increasing the cost of these products is likely to discourage people from switching to a smoke free alternative .” The legislation has been submitted to the Taxation , Finance and Economic Development Committee for consideration .
Despite continued warnings from vape advocacy groups , policymakers across the globe are still campaigning for increased tax excise on e-cigarettes . Lawmakers are being urged to follow the guidance of scientific evidence , rather than equating vaping with the dangers of smoking tobacco .
Following a recent consultation on the Tobacco Excise Directive , the European Commission expressed its intention to tax vaping products at a similar rate to cigarettes . World Vapers ’ Alliance ( WVA ) Director Michael Landl criticised the strategy , highlighting the impact on adult smokers and the lowincome population as points of concern .
He said : “ Making vaping less appealing to smokers by higher prices will discourage current smokers from switching to less harmful alternatives .”
It appears Landl doesn ’ t stand alone , with 84 percent of associations and citizens that responded to the consultation acknowledging the potential harm that a tax structure like this could pose .
“ I am delighted by the overwhelming number of responses in favour of vaping to this consultation . It shows that many people know the potential for harm reduction of vaping ,” said Landl . “ What policymakers need to understand is that tax hikes on vaping will lead to people switching back to smoking , an outcome absolutely nobody wishes for . “ If we want to reduce smoking-induced burdens on public health , access and affordability to vaping products need to be guaranteed .”
Unfortunately , the US has taken a leading role in the fight against vaping , with several states and cities introducing controversial new taxes this year .
Here are some of the latest bills and proposals to hit American vapers .
“ If we want to reduce smokinginduced burdens on public health , access and affordability to vaping products need to be guaranteed .”
Alaska Despite backlash from the local vaping community , Anchorage , Alaska , has passed a bill to tax e-cigarettes to the same tax rates as tobacco products . The legislation came into effect on January 1 and will tax vaping products at 55 percent of their wholesale value . While city officials claim the bill will combat ‘ teen vaping trends ’, local vendors say the move will be is ‘ problematic ’ for adult smokers .
Colorado Colorado voters passed a new bill that will incrementally raise the tax on vaping products over the next seven years . In the first state vape tax in Colorado , the measure creates a rolling tax on e-cigarettes that runs parallel to the state ’ s existing rates for tobacco products . Coming into effect in 2021 at 30 percent of the manufacturer ’ s list price ( MLP ), the tax will increase to 62 percent by July 2027 . Online purchases made to out-of-state retailers will also be subject to the tax rates outlined in the bill .
Georgia Georgia imposed a new excise tax on vaping products from January 1 , to tax single-use devices and open systems at seven percent of the wholesale cost . Closed systems will be taxed at five cents per millilitre under the measure . State representative Bonnie Rich said : “ The tax attempted to mirror , as closely as possible , the cigarette excise tax that we already have .”
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