The e-cigarette industry is boiling again. Finally, there is big news from the United States, where the House Ways and Means Committee approved a tax on e-cigarettes, the first U.S. tax on nicotine liquids, according to a recent Bloomberg report. The aim is to prevent teenagers from using e-cigarettes, which can raise the price of e-cigarette products to levels that teenagers cannot afford.
“Increasing the cost of e-cigarettes will be directly related to reducing the use of e-cigarette products,” Representative Tom Suozzi, Democrat of New York who sponsored the legislation, said in a statement. In addition, the Joint Committee on Taxation noted that once the new law is passed and implemented, it will generate nearly $10 billion in revenue for the federal government over the next 10 years.
Who’s going to pay a tax bill on e-cigarettes?
E-cigarettes in the U.S. are clearly the first to bear the brunt of the trend.
There have been media calculations in China, with a nicotine content of 3% and a tax of 0.7 ml of liquid for $0.68, juUL’s average nicotine content of 5%, and a smoke liquid of 0.7mL, taxable at $1.15. As a result, the current $15.99 group of JUUL will raise the price of a cigarette bomb by $4.60. However, for the possible “taxed” news, JUUL China told the tiger smell did not receive the relevant notice.
And on the e-cigarette tax, in the United States really has not yet a relatively official announcement, is true or false, the specific situation will have to wait some time.
In the United States, a near-saturated, highly mature e-cigarette market, the topic continues. On August 23, the first suspected e-cigarette death in the United States occurred in Illinois. The data showed that at least 22 patients between the ages of 17 and 38 also developed the same symptoms as the case after using e-cigarettes.
A few days after the incident, on September 12, Mr. Trump met with the heads of the U.S. Department of Health and Human Services (HHS) and the FDA at the White House to discuss the health threat posed by e-cigarettes and announced a ban on the sale of all non-traditional tobacco-flavored e-cigarettes on the U.S. market. In late September, JUUL announced that Kevin Burns, its chief executive, had stepped down as chief executive, replaced by K.C. Crosthwaite, a former Altria executive, and stopped advertising on all television, online and print media in the United States.
Finally, however, the latest findings on lung damage caused by e-cigarette use suggest that cannabis products played a role in the outbreak: On September 28th the U.S. Centers for Disease Control and Prevention (CDC) published its Morbidity and Mortality Weekly report, which found that 77% of people were affected by the outbreak. The subjects used products containing THC (tetrahydrocannabinol) or both products containing THC and nicotine.
Still, the panic of the e-cigarette crisis has not been over for a short time – Wal-Mart announced in mid-September that it would stop selling e-cigarettes, followed by Us supermarket chain Kroger and Walgreens, the largest U.S. drugstore chain operator.
If the e-cigarette tax is anything to go by, it’s a fundamental plan that u.S. government agencies have at this stage that are actually binding on e-cigarettes. And is through a series of means such as taxes to control e-cigarettes in fact, the Philippines, Russia and so on.
The Philippines has been imposing a consumption tax on e-cigarettes and heated tobacco products since July, followed by a bill to raise taxes further. Carlos Dominguez, the country’s finance minister, said recently that the country would increase its consumption tax to discourage more people from using e-cigarettes amid growing global concerns about the health risks of e-cigarettes, but that it was unlikely to ban the sale and use of such products. The bill could more than quadruple the tax rate on e-cigarettes and heated tobacco products.
“I don’t think we’re going to ban it,” Domingos said. We believe that e-cigarettes already exist and are already very popular in the Philippines and cannot be banned. ”
Russia has also increased taxes on e-cigarettes. In the middle of this month, Russian Health Minister Veronika Skvortsovam said the country’s health ministry had drafted a bill to impose a consumption tax on e-cigarettes and justified the proposed tax bill with “e-cigarettes attracting people to smoke,” Reuters reported.
Russia’s new law provides for the beginning of January 1, 2020. The consumption tax on all electronic nicotine delivery systems will increase year by year: the consumption tax on electronic atomized cigarettes and heating non-burning equipment will be increased to 50 rubles (RMB 5.2) per unit, 52 rubles (RMB 5.4) in 2021 and 54 rubles (5.6 yuan) in 2022; (1.4 yuan), 14 rubles (1.5 yuan) in 2021 and 15 rubles (1.6 yuan) per 1 ml in 2022.
On October 23rd the South Korean government also said it would speed up research to decide whether to ban the sale of liquid e-cigarettes al-Again, and had begun advising people to stop using them immediately.
But there are also some countries that are more open. In contrast to the hype, the UK, New Zealand and parts of Europe are struggling to make e-cigarettes their name. Martin Dockrell, head of tobacco control at Public Health England, for example, says the problems are often with consumers who buy or make their own illegal cigarettes on the street, most of which contain cannabis ingredients such as THC. These products come from the black market, unlike e-cigarettes purchased through formal channels.
Turn edify to look at the domestic, but the mystery is still to be solved.
What will the e-cigarette tax bring?
The legend is that the national label for e-cigarettes, which will arrive in October, has not yet been definitive.
Blue Hole’s new consumption wrote last month, the national standards committee’s official website was once unable to query the progress of e-cigarette-related national standards. However, previously retained screenshots show that the first is the “e-cigarette” national standard, by TC144 (National Tobacco Standardization Technical Committee) reportand and implementation, the competent authorities for the National Tobacco Monopoly Bureau, and has entered the “in the process of approval” stage.
The second national standard is the “E-cigarette liquid nicotine, propylene glycol and propylene glycol measurement gas chromatography law”, is also by TC144 (National Tobacco Standardization Technical Committee) at the mouth of the report and implementation, the competent authorities for the National Tobacco Monopoly Bureau. Previously, the country’s mark has also entered the “in the process of approval” stage, is now suspected to have exceeded the cycle. But e-cigarette national standard information from the standards committee official website also does not rule out is the new version of the website version caused.
On when the national standard appears, some industry insiders on the tiger sniff said “it is still early”, there are rumors that the release of the national standard has been postponed to next year.
The future management of e-cigarettes may be very much attributed to the National Tobacco Monopoly Bureau, and the e-cigarette tax, it is also possible that the next management action. First of all, the first layer of e-cigarette tax is still, as the United States believes, can help reduce the use of e-cigarettes by minors, but obviously, complete elimination is still unlikely, after all, minors smoking e-cigarettes is a long-term proposition that needs to be addressed from all angles.
In addition, the arrival of the e-cigarette tax, to a certain extent, can help speed up the e-cigarette industry reshuffle.
The national label has yet to land, giving all e-cigarette brands more respite. And for e-cigarette companies that don’t have enough compliance with products, and have weak financing and unhealthy cash flow, the e-cigarette tax is almost the end of the day.
At present, China is collecting tobacco-related taxes and fees mainly include consumption tax, value-added tax, enterprise income tax, tobacco tax and so on. In the mid-year “Health China Action (2019-2030)” issued the opening, the National Health and Health Commission Planning Director Mao Qun’an said that the Health and Health Commission supports the reduction of tobacco consumption through tax means, will work with the relevant departments to further study the possibility of tax price adjustment.
The interface has been combed, and the last time China adjusted its tobacco tax was in May 2015. The wholesale and retail prices of cigarettes in the first to fifth categories increased in 2015 compared to 2014. Tax as a share of retail prices rose from 52% to 56%, and tax profits rose from $911 billion to $1095 billion. A year after the tax increase, cigarette sales in China fell 4.61 percent and smoking fell by about 5.1 million, according to the World Health Organization.
“But China’s current tobacco tax revenueasises as a percentage of its sales price is still a gap from the 75 per cent recommended by the World Health Organization. According to the World Health Organization, China’s tobacco tax rate in 2016 was 51%, ranking 102nd out of 188 countries and regions. ”
Mao Qun’an also made it clear that the National Health and Reform Commission is working with the relevant departments to carry out research on e-cigarette regulation, the plan to regulate e-cigarettes through legislation.
The debate about whether e-cigarettes are “safe and healthy” will always be the most pragmatic of all, or whether it will really be taken into account when e-cigarettes can really be included in the benign regulatory category. But all of this is on the road.