USA vape tax could impact vapers in a huge way.
In America, a bill has been proposed that would increase taxes on all tobacco products to match those applied to cigarettes. This means that vaping in the USA could be more expensive than smoking. The tax on cigarettes would be doubled from $50.33 to $100.66 per 1000 cigarettes. However, it’s worth noting that if we compare the amount of nicotine in cigarettes to that of other tobacco products, such as e-liquids, they would be taxed at a rate five times higher than cigarettes.
If this bill is passed, consumers will have to pay 5.5 cents per milligram of nicotine for tobacco products other than cigarettes, while cigarettes would be taxed at 1.1 cents per milligram. This tax hike would also apply to other nicotine replacement therapies, such as nicotine pouches, which are safer alternatives to cigarettes[1].
Let’s put this into perspective and pretend that the UK was applying the same tax, not taking into account exchange rates.
| Strength | Extra Cost (Per Bottle) |
| 0.3% | +£0.17 |
| 0.6% | +£0.33 |
| 1.0% | +£5.50 |
| 2.0% | +£11 |
Even though we have a multi buy on liquids, it would still be a huge increase. 3 bottles of VLTZ e-liquid at 1.0% would cost £26.50. An Elfliq multi buy would jump from £10 for 4 bottles to a whopping £54. It’s not just juice that would feel the pinch, either. Disposables would go up by an extra £2.20.
Why is this important?
Aside from the health benefits, cost is one of the biggest reasons that people switch to vaping. As shown on our calculator, a 20 a day smoker saves an average of £3,931 annually. This would definitely not be the case if nicotine were to be taxed.
This increase is only going to lead to people moving back to smoking, which will become cheaper. It should be the opposite way around, with cigarettes being taxed and NRTs being promoted. Studies have shown that even a 1% increase in the cost of e-liquid will make vapers turn back to harmful cigarettes[2].
Rule Britannia
Luckily for us, the UK government are a lot more supportive about vaping. Even the NHS recommend vaping as a stop-smoking tool. Although there are changes coming to vaping policy following a current call for evidence, I’m sure these changes will only be to support vapers and achieve the goal of having our country smoke free by 2030. While vaping in the USA could be more expensive than smoking, that will never be the case in the UK.
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Sources
[1] CASAA. (2023). US – FIGHT A VAPOR TAX (HR 5715/S 2929).
[2] Freidman, A. S & Pesko, M. F. (2023). Young adult responses to taxes on cigarettes and electronic nicotine delivery systems.
