Why some say Indiana’s vaping tax proposal…


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by: Kayla Sullivan

Posted: / Up to date:

INDIANAPOLIS — Elevating the cigarette tax in Indiana began as an actual chance this 2021 legislative session however now it’s unlikely. Nonetheless, a small vaping tax remains to be alive on the Statehouse regardless of criticism.

Seattle, Washington native Vasiliy Frantsevich doesn’t perceive why Indiana is selecting to maneuver ahead with a vaping tax improve over cigarettes.

“I think because we already understand how horrible smoking cigarettes is, it’s kind of easier to convince people this is really bad for you,” defined Frantsevich.

In his state, they’ve a 3 greenback per pack cigarette tax. Indiana’s is lower than a greenback. The Indiana Chamber of Commerce and plenty of different teams have been pushing to lift it to 2 {dollars}.

“It costs businesses an estimated $6.2 billion a year here in Indiana in higher healthcare costs, absenteeism, and lost productivity,” stated Indiana Chamber President Kevin Brinegar.

Republican senate leaders stated they needed to save lots of the cigarette tax hike for when federal Medicaid funding decreases. Nonetheless, they stated they’re transferring ahead with a small vaping tax improve to ship a message to younger folks it’s harmful.

The proposal will increase open e-liquid programs 10% and places a .10 cent per mL tax on closed programs just like the JUUL.

“We oppose any kind of new excise tax on vaping products,” stated Gregory Conley, President of the American Vaping Affiliation. “But ultimately if legislators are going to move forward with this, it should be a low and specific tax. One on open systems and one on closed systems.”

The Indiana Chamber of Commerce stated this vape tax is so low it’s not price doing. They don’t assume it should get younger folks to cease or increase sufficient cash to assist. It’s anticipated to solely give the state about $5 million in income.

“Either raise it up to a level that’s comparable to the tax on cigarettes or take it out and we will come back and have this discussion at a later time,” stated Brinegar.

The American Vaping Affiliation stated elevating it to the cigarette tax degree may very well improve cigarette use.

“Any tax on vaping products is premature particularly in a state with nearly 1 million adult smokers,” stated Conley. “These businesses, these vape shops, they are helping smokers quit.”

Lawmakers are nonetheless debating vape and cigarette tax will increase however ought to come to an settlement within the coming days.


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