The North Dakota House has once again voted down a bill that aimed to increase taxes on cigarettes and vaping products. Senate Bill 2281, which proposed a 25-cent tax hike on cigarettes and additional taxes on vaping products, was rejected by House lawmakers.
Read moreTag Archive for: vaping tax
As we enter the year 2025, the e-cigarette market in the United States has undergone significant changes in terms of regulations, taxes, and sales policies. Each state has adopted its own unique approach to managing e-cigarettes, ranging from strict prohibitions to relatively lenient oversight. These varying policies have had a profound impact on the development of the e-cigarette industry in different regions. In this article, we will take an in-depth look at the latest e-cigarette policies across the United States, categorized by policy type.
Read moreThe North Dakota Senate is currently considering a bill that would increase taxes on cigarettes and cigars by $0.25 and equalize the tax rate on vaping products to match other tobacco products. The additional revenue generated would be allocated to local health units and suicide prevention services.
Supporters of the bill, such as Sen. Kathy Hogan (D-Fargo), argue that raising tobacco taxes is an effective way to improve public health outcomes, particularly by deterring young people from vaping. However, opponents call the measure regressive and claim that it will drive responsible nicotine users to purchase products online, where there is less oversight on product quality and safety.
If passed, proponents note that North Dakota’s cigarette tax would still remain lower than those in neighboring states. The House previously voted down a similar proposal before the legislative crossover deadline.
The Indonesian Personal Vaporizer Association (APVI) has reported a remarkable 50% increase in electronic cigarette tax stamp purchases, reaching an impressive Rp2.8 trillion in 2024. This substantial growth is a testament to the rapid expansion of the electronic cigarette industry, driven by strong demand from both domestic and international markets.
Read moreTennessee legislators have introduced a bipartisan bill that would fundamentally transform the state’s vaping industry, sparking intense debate and forcing a one-week delay on the House committee vote originally scheduled for March 3rd.
Read moreThe Bureau of Internal Revenue (BIR) plans to align taxes on vape products and traditional cigarettes this year to increase revenue collection, according to BIR Commissioner Romeo Lumagui Jr. During the BIR Region 7B Tax Campaign Kickoff, Lumagui told reporters, “I think it will happen this year. There will be an improvement, and the drag down of excise taxes on tobacco and vape will not be that big.”
Read moreA new bill in the Iowa Senate that would impose a state tax on vapor cartridges for electronic cigarettes and nicotine pouches is set to be considered by a Senate Committee. The proposed legislation has sparked a debate between those who believe vaping products should be taxed similarly to cigarettes and those who argue that these alternatives are less harmful and should not face the same level of taxation.
Read moreThe Colombian House of Representatives has approved in a second debate a bill that seeks to impose a 30% tax on the consumption of electronic cigarettes and vapes in the country. The proposed “health tax,” as it is referred to in the legislation, aims to decrease the use of these electronic smoking devices in Colombia.
Read moreThe New Mexico Senate Tax, Business and Transportation Committee has advanced a bill (Senate Bill 20) that aims to increase the tax rate on e-cigarettes, nicotine pouches, and other synthetic nicotine products. The bill, sponsored by Sen. Martin Hickey, D-Albuquerque, passed the committee with a 4-3 vote on Feb 18.
Read moreNew 10% Levy Compounds Existing 25% Tax on Electronic Nicotine Delivery Systems
Effective February 4, 2025, the United States imposed a new 10% tariff on a wide range of products imported from China, including the majority of vaping devices used by American consumers. This additional levy, the first punitive measure taken by the second Trump administration, comes on top of an existing 25% tariff that has been in place since August 2018.
The combined 35% tax applies to all Chinese-made electronic nicotine delivery systems (ENDS), such as mods, batteries, pod-based devices, and disposable vapes, classified under Section 301 of the Harmonized Tariff Schedule of the United States (items HTS 8543.70.9930 and HTS 8543.70.9940).
China Retaliates with Tariffs on U.S. Goods
In response to the U.S. action, China swiftly implemented retaliatory tariffs on key American exports, including a 15% levy on coal and natural gas and a 10% tax on crude oil, farm machinery, and certain automobiles. The U.S. tariffs include an anti-retaliation clause that allows President Trump to further increase the 10% rate or introduce additional tariffs if China escalates the trade dispute.
Tariffs Burden American Businesses and Consumers
Contrary to popular belief, tariffs are not taxes on foreign countries but rather on American consumers. As import taxes added to products from abroad, they are designed to give U.S. manufacturers a competitive advantage by making foreign goods more expensive. However, since mass-market vape devices are not produced domestically, the tariffs will ultimately burden American importers, wholesalers, retailers, and consumers through higher prices.
According to the Tax Foundation, the Trump administration’s tariffs from 2018-2019 constituted “one of the largest tax increases in decades.” The extension of these policies by the Biden White House and the introduction of new levies have further compounded the impact on businesses and consumers.
Potential Impact on Vape Prices
The immediate effect of the new 10% tariff on vape prices may be muted, as manufacturers, importers, and wholesalers could absorb some of the cost depending on product profit margins. Chinese parts suppliers may also temporarily lower prices to help manufacturers maintain profitability. However, if the U.S.-China trade war continues to escalate and additional tariffs are imposed, consumers are likely to feel a more significant impact.
As inflation persists, the cumulative effect of tariffs on Chinese vape products could lead to notable price increases for American vapers. While the industry has demonstrated resilience in the face of past economic challenges, the ongoing trade tensions and regulatory uncertainty pose significant risks to businesses and consumers alike.
Policymakers must carefully consider the unintended consequences of tariffs and work towards a resolution that balances national economic interests with the needs of American businesses and consumers. As the vaping industry continues to evolve, it will be crucial to monitor the impact of trade policies and advocate for fair and reasonable treatment of this innovative and rapidly growing sector.
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