Tax Avoidance.

[vereybowring]

Really glad I switched over to vaping when I did, I will now avoid the extra 2% duty on tobacco products.
This means I will be saving even more money than I would otherwise have done.

This should show all doubters that vaping is the way ahead (at least until they start taxing it more heavily).

 

[rolygate]

Ah, a canny Scot there

 

[jsaveker]

Yes I could not believe seeing up to 50p on a pack of ciggies. That brings them to around 7 squid per pack.

I think this can only go to encourage people to quit or look for alternatives.

Sent from my HTC Vision using Tapatalk

 

[BenP]

Totally agree!

Just have to find a fuel alternative now

 

[Al Capwn]

Come on Ben, it's a penny cheaper

you could always get an electric car...

 

[BenP]

O yes!

I cant wait to save a hole 55 Pence on a full tank

 

[Perfectionist]

Like ya title dude !!

Which is precisely why Vaping is under threat ..... they will plug this "loop-hole" eventually so enjoy the Duty-Free status while you can !!

 

[rolygate]

Perfy is right. When 25% of smokers have switched, the financial pain will be intense, and the tax assault will begin.

It will be interesting to see how this plays out. One possible scenario is that a Labour government returns to power -- ecigs are banned -- a huge black market starts up -- more and more smokers switch -- despite the fact that sales are banned, 25% of smokers eventually switch to ecigs via the black market -- there is a huge loss both in sales tax and tobacco tax -- the government capitulates and legalises ecigs, imposing substantial tax levels.

That's one way it might develop.

 

[Adrena]

Yep just got warning yet another tax hike in GA for tobacco, glad I don't ride that train any longer....

 

[Al Capwn]

Perfy is right. When 25% of smokers have switched, the financial pain will be intense, and the tax assault will begin.

It will be interesting to see how this plays out. One possible scenario is that a Labour government returns to power -- ecigs are banned -- a huge black market starts up -- more and more smokers switch -- despite the fact that sales are banned, 25% of smokers eventually switch to ecigs via the black market -- there is a huge loss both in sales tax and tobacco tax -- the government capitulates and legalises ecigs, imposing substantial tax levels.

That's one way it might develop.

The thing is, I can totally understand your skeptism but I can't see bans/OTT taxes without any scientific data to show ecigs are dangerous. Any kind of movement by the ecig industry to debate the issue would only result in failure for anyone wanting a ban. The "they might encourage children" thing is their only argument and easily countrered.

If they try and ban/tax ecigs then I would simply ask why not do the same with mobile phones which also have "unproven" long term effect concerns.

 

[rolygate]

Unfortunately this is incorrect. The government pharmaceutical licensing agency only just failed in an attempt to ban e-cigarettes, which was blocked in effect because the government changed. If the old one was still in power, e-cigs would now be banned (the new lot didn't want more regulations). In one year's time, the agency will go to law to have ecigs banned in the UK. At that time we will need to fight or say goodbye to 99.99% of products. You will be able to buy a cigarette clone model with a tiny battery, and one or two mild flavours of eliquid, probably with low nic strength. And that's that.

Debate, logic, reasoning or whatever is not relevant. The pharmaceutical industry will lose more and more income from NRTs as e-cigs become more popular, and they are the ones trying to get a ban. Governments are at this point neutral. However the pharma industry has a strong influence over certain government departments, so their agenda is promoted.

Tax will be applied when the pain starts to bite. Since tobacco tax pays for the entire NHS, I believe, then when tobacco tax revenue has fallen by 25% you can expect a reaction. Before that, no doubt.

You can probably see that when 25% of smokers have converted to ecigs - as they will, the only question being the timescale - the financial implications will be interesting. We're talking here about a massive black market of course, if ecigs are banned. Most people will continue to buy on the web, but their supplies will be mailed in from Holland or wherever.