Vaping and tax

Vaping and Taxation

Independent studies show that price is an important factor in encouraging adult smokers to transition towards vaping, and that demand is more responsive to price than cigarettes. We believe if we aren’t able to deliver a strong value proposition to those adult smokers who are price conscious, it will be impossible to encourage them to transition away from cigarettes. Regulatory and excise tax regimes for vaping products should recognise that they are completely different from tobacco products, and we urge regulators to resist the temptation to treat the vaping category as a ‘cash cow’ revenue generator to plug budgetary shortfalls. 

No tobacco

Applying excise taxes to vaping products makes them more expensive. This in turn makes vape products less appealing to cost-conscious adult smokers who are looking for a reduced risk alternative to traditional tobacco products. Vapes do not contain tobacco, so it is confusing to conflate them with traditional tobacco products. Perhaps most importantly, health bodies around the world increasingly acknowledge that vaping provides significant potential for reduced harm if smokers transition from cigarettes, so that transition should be encouraged by an appropriate tax regime. For the category to continue to meet consumer needs, it is essential that excise levels remain low when compared to cigarettes.

blu was founded in the USA in 2009 and is one of the original e-cigarette brands. It was acquired by Fontem Ventures in 2015. As one of the world’s most recognizable vape brands, blu offers adult smokers’ choice through high-quality e-vapour products and e-liquids.

Nerudia was established in 2013 and became part of Imperial Brands in 2017. It is the home of innovation and technology R&D for Next Generation Products (NGP) which includes e-vapour, heated tobacco and oral nicotine delivery. Nerudia is dedicated to creating a world where smokers have choice.

Fontem Ventures is a subsidiary of Imperial Brands PLC, a global consumer organisation and the fourth largest international tobacco company in the world, operating across 120 markets.

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