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Policy US New E-Cigarette Tax Takes Effect in The State of Kentucky

Earlier this year, a House committee approved a bill aiming to raise approximately $50 million via a new excise tax on vaping products and an increase in existing taxes on tobacco products other than cigarettes, which went into effect last month.

Last February, State Rep. Jerry Miller, R-Louisville, presented an amendment on his House Bill 32, agreeing to lower tax increases equating to a lower revenue gain for the state budget than the $94 million promised by the original version. Ben Chandler, president of the Foundation for a Healthy Kentucky, thinks that tax increases are a step in the right direction as it discourages teens to purchase the products. A significant tax bump reduces consumption,” he said.

These kids are as young as 11 and 12 years old,” added Chandler referring to those trying vaping. And they are experimenting with a product containing high levels of nicotine and made in such a way that it can hook them almost overnight, subjecting them to a lifelong addiction that is among the most difficult addictions on Earth to break.

Going into effect this week, the new excise tax on vaping products will increase prices for cartridge-based e-cigarettes by $1.50 per pod, and containers of refillable e-cigarette liquid will be taxed at 15% of the wholesale price.

Bonnie Hackbarth, lead staff member with the Coalition for a Smoke-Free Tomorrow said that research has shown that increasing the price of nicotine products, deters people from using them. Before the Food and Drug Administrations partial ban on flavored e-cigarettes even began,” said Hackbarth, companies had already introduced products that took advantage of one of the loopholes, and thats disposable e-cigarettes. And this tax will apply to those as well.

Vapesourcing Opinion:

Can raising taxes effectively prevent young people from buying? The result is still unknown.

But raising high taxes often leads to an increase in adult smoking rates and a decrease in smoking cessation rates. This is bad news.


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