In a move that will result in vaping products having similar tax rate as cigarettes, on October 4th, Governor Gavin Newsom approved a 12.5% percent vape tax for California.
Authored by Democratic State Senator Anna Caballero, the bill aims to discourage youth vaping.
Moreover, it aims to generate $38.4 million in revenue by 2023, “with money to be split among several programs, including early childhood education, public health education and grants to students from disadvantaged communities pursuing an education in the health field.”
Of course public health and tobacco harm reduction experts will argue that being safer nicotine alternatives, taxes on vaping products should be much lower than the ones on cigarettes. Moreover, despite not felt by customers, California already has a 60% wholesale tax for vape distributors in place.
“Most manufacturers that have had to collect or remit the wholesale tax decided not to push it onto the retailers and consumers and ‘ate it,” said Stefan Didak, a tobacco harm reduction (THR) advocate in California, as quoted by Filter.
Diane Caruana – Vaping Post – 2021-11-04.
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