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The Federal Council proposes extending the current tobacco tax to vaping liquids, and plans to do so at a rate that reflects the products' lower toxicity. The government does not want to discourage tobacco smokers from switching from smoking to vaping, and therefore proposes a tax rate that is 77% lower than that levied on regular cigarettes.
In addition, the e-liquid tax is planned relative to the different nicotine content in the products. Actually, one idea is to tax the nicotine content in vape liquids for open systems, which means the tax will increase as the nicotine content increases. As for disposable devices or those using cartridges, the tax will be based on the amount of liquid contained in them regardless of their nicotine content.
The government believes that such a tax can be easily enforced and would generate around CHF 15.5 million per year, which could be used for social services. The Federal Council's proposal, which will be debated until March 31, 2022, responds to a motion approved by parliament and the Council of States in March 2021.
Impact of tobacco tax rates on adult consumption
Meanwhile, a recent study published in the Journal of Risk and Uncertainty, looking at the effect of traditional cigarette and e-cigarette tax rates on adult tobacco consumption levels, found that an increase in tax rates on vaping products was directly proportional to an increase in smoking rates.
The study, titled "The Effects of Traditional Cigarette and E-cigarette Tax Rates on Adult Tobacco Product Use," analyzed the effects of taxes on traditional cigarettes and vaping products on the same product use patterns among adults in the United States. The researchers examined data from the Behavioral Risk Factor Surveillance System and the National Health Interview Survey (NHIS) during the period 2011 to 2018.
The research found evidence that higher taxes on traditional cigarettes reduced adult smokers and increased adult e-cigarette use. Similarly, higher e-cigarette tax rates increased traditional cigarette use and reduced vaping.
"The cross-tax effect implies that the products are economic substitutes. Our results indicate that a proposed national e-cigarette tax of $1.65 per milliliter of vaping liquid would increase the proportion of adults who smoke daily by approximately 1 percentage point, which translates to 2.5 million additional adult daily smokers compared to the counterfactual of not having such a tax," read the study's Abstract.
So, that's the article for this occasion, hopefully, an article like this can be new insight for you vapers. Of course, if you want to share and gain knowledge about vape, you can come directly to the nearest Vapeboss retail store, where you will be assisted by our Vaporista and given a lot of information about the world of vape. Also, if you lack vape supplies and have difficulty buying them, you can contact our retail WA for purchases with a COD system. Because Vapeboss is the most complete and trusted vape shop since 2014, so whatever your vape needs, they are definitely available there.
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Keep Calm and Vape Like a Boss and Always stay safe while vaping and always follow health protocols during the current pandemic. Have a nice day, Bigboss!