Poor Tax Design in Alaska Vapor Tax Proposal


A proposal to introduce a wholesale tax on vapor products in Alaska could make switching from combustible tobacco products very expensive for smokers.

If enacted, HB 110 (SB 45) would, among other things, impose a 75 percent wholesale tax on nicotine vapor products (including components)—a rate comparable to the rate on other tobacco products and cigarettes.

Such a steep tax would markedly increase vapor products retail prices, which could limit the number of smokers that switch.

While excise taxes on both cigarettes and vapor products can be a legitimate way to recoup some societal costs associated with nicotine consumption, it is hard to justify equal tax treatment between vapor products and combustible tobacco. Vaping is unlikely to be harmless, but the consensus is that vapor products are significantly less harmful than traditional combustible tobacco products. Public Health England, an agency of the English Ministry for Health, concluded that vapor products are 95 percent less harmful than cigarettes.

Read full article here.

Ulrik Boesen – Tax Foundation – 2022-01-07.

Want More Investigative Content?

Curate RegWatch
Curate RegWatchhttps://regulatorwatch.com
In addition to our original coverage, RegWatch curates top stories on issues and impacts arising from the regulation of economic, social and environmental activity in Canada and the U.S.


Please enter your comment!
Please enter your name here


Useful Idiots | Misguided Assumptions Leave Vapers Ignored | RegWatch

Reporting from the Global Forum on Nicotine 2023 in Warsaw, Poland, RegWatch takes a deep dive into the machinations of tobacco control and its...

Vaping Coverage Get it NOW!

Sign Up for Incisive Content!

RegWatch original video is designed to move opinion. Get our videos first and be the first to share.

Your Information will never be shared with any third party