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Tax On E-cigarettes Means More Smokers

Discussion in 'Manvap' started by Manvap_Tagpod, Mar 16, 2020.

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  1. Manvap_Tagpod

    Manvap_Tagpod Unregistered Supplier

    Dec 19, 2019
    A new study has found that more tax on e-cigarettes sees more people returning to or sticking to smoking.

    It can be seen that since the flavoured sealed pod ban, there’s been a marked increase in traditional cigarette sales.

    upload_2020-3-16_14-55-43.png
    It seems pretty obvious, but with many countries looking to raise tax on all things related to vape, it might make politicians think twice.

    Researchers at Ball Sate University in Indiana USA looked at data from 35,00 US retailers.

    Erik Nesson, an economics professor in the Miller College of Business said:

    Every 10% increase in e-cigarette prices, e-cigarette sales drop 26%.

    But, the same 10% increase in e-cigarette prices causes traditional cigarette sales to jump by 11%.

    Although vaping-related illnesses are a public health concern, cigarettes continue to kill nearly 480,000 Americans each year, and several reviews support the conclusion that e-cigarettes contain fewer toxicants and are safer for non-pregnant adults.

    Thus, balancing e-cigarette and cigarette use will continue to be an important issue for policymakers to consider as they develop e-cigarette related tobacco control policies.

    20 states in America have increased tax rates on e-cigarettes and Erik says the recent flavoured sealed pod ban has seen a spike in sales of lit tobacco:

    We estimate that for every 1 e-cigarette pod no longer purchased as a result of an e-cigarette tax, 6.2 extra packs of cigarettes are purchased instead.

    The public health impact of e-cigarette taxes in this case is likely negative.

    We can make a preliminary estimate that banning and tax increases can simply keep smokers smoking or vapers turning back to tobacco.

    Link to the full study.

    Article origin:

    Neil Humber. Tax On E-cigarettes Means More Smokers, February 2020. Ecigclick: Latest Vape News and Views Trump Wants FDA Out Of Vaping + More Vape News | Ecigclick
     
  2. zoiDman

    zoiDman My -0^10 = Nothing at All* ECF Veteran

    Supporting member
    Apr 16, 2010
    So-Cal
    So if you are a State that Really Likes the Tax/MSA Revenues that Cigarettes bring you, or if you are a Politician and Really Like the Campaign Funding that BT gives to you, this is a Good Thing.

    Right?
     
  3. Manvap_Tagpod

    Manvap_Tagpod Unregistered Supplier

    Dec 19, 2019
    Literally, it is.
    That's also the reason why government has strict limitation on online vape shop, for it may lower the tax income from tobacco.
     

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