Vaping has gained a lot of popularity in the recent years. This is especially amongst individuals who’re trying to kick the habit of cigarette smoking. Vaping helps reduce the risks associated with this. As vaping gains popularity, many states are targeting it for new tax laws. The proposed tax laws are different across each state
North Carolina has already made laws which have seen to the increase of taxes on vaping products. Washington D.C proposes that the tax on vape products be increased by 70%. On the other hand, states like Indiana are proposing that the tax on vape products be increased by 24% of the total wholesale price. Other states like Alabama and Minnesota propose that tax be applied per milligram of nicotine solution. This will be a 25%-30% tax increase, respectively.
One of the main reasons for the tax laws on vapor and vaping equipment is the need to regulate consumption of vape products. This is in the belief that vaping could be a new source of nicotine addiction and through taxes, this effect can be controlled.
Other tax proposals are based on pure politics. They may not be happy with the easy money making in the vaping business.
If these tax laws are passed, the vapes will be ridiculously expensive therefore forcing consumers back to cigarette smoking. Therefore, many consumers would turn back into cigarette smoking thus risking their health from the tobacco effects. This will increase the death rates associated with tobacco smoking.
Online shops will be affected by the new vaping tax laws and could possibly go out of business. This is because they could be selling their products at very high prices while shops in other states maintain theirs.