Lawmakers Propose Hefty Taxes on Some Electronic Cigarette Products

Honolulu (Hawaii News): National lawmakers are exploring a measure to impose wholesale taxes on nicotine e-cigarettes and related products, which may be passed on to retailers and consumers.

A smoke-free Hawaii coalition stated that the increase in taxes would lead to a reduction in e-cigarette use.

The coalition's policy director, Trish La Chica, said: “Increasing taxes is a proven effective strategy to motivate users to quit smoking.”

Initially, one of the proposed tax rates was set at 70%. House members later decided to remove this amount for public discussion before making a decision.

Scott Rasak of Volcano Fine E-Cigarettes said: “We don’t know when we will face bankruptcy; we strongly oppose any tax increases on our customers and the industry.”

The U.S. government defines e-cigarettes as tobacco products, but currently does not impose a national tobacco tax.

“Vapor products and tobacco products are completely different,” Rasak said. “They do not contain tobacco, nor do they produce smoke; these are entirely separate products.”

Supporters of the tax hope to apply it to all components of e-cigarettes.

“The preferred method is to tax e-smoking devices, including components and parts defined jointly by the Food and Drug Administration,” La Chica said.

Rasak stated that this approach would drive up the prices of devices, negatively impacting business development and harming consumer interests.

“Some of these devices cost as much as $170, and their wholesale price is about $90,” he said.

La Chica cited a 2015 survey indicating that a quarter of high school students in Hawaii have used e-cigarettes. The national legal age for vaping is 21.

“We really want to do everything necessary to protect the new generation from being led to tobacco products,” she said.

While caring for the new generation, these lawmakers overlook those who wish to use e-cigarettes as an alternative to smoking, whose lives also need protection.