Purchasing vaping products outside the State may turn a consumer into importer before the law
In Pennsylvania, vaping products will be taxed by 40% in October 2016. A tax that goes very far because it does not only apply to the products bought within the state but also in another state. Buying online in any other state or abroad will also need to be declared.
Consumers, like retailers, who will buy vaping products in other states or abroad will become importers and will be taxed by 40%.
Imprisonment for infringers
Vape shop owners and the vapers, themselves, will have to file a report on what they purchased on a monthly basis in order to pay their taxes to the state of Pennsylvania. A $5,000 fine and a 5-year term of imprisonment are foreseen for infringers.
Beside the 40% tax, the vape shop owners will be submitted to a “Floor tax”. This latter, another 40%, also concerns the vaping products in stock on October 1. Owners will have 90 days to pay.
Manufacturers, retailers and vendors will need a state licence to sell vaping products. And of course, vendors will be limited to the products of licensed manufacturers or retailers.
Closings of vape shops are likely, with greater chances of relapse to tobacco for vapers
As a consequence of this law, the owners are fearing to be obliged to close doors. And if they keep their businesses, the offer of vaping products will certainly decrease drastically. At the end of the chain, vapers will be impacted.
Some vapers are fearing to relapse to tobacco smoking as soon as the law comes into force. The owners denounce this decision whose impacts on public health will be disastrous. From the side of employment, it is conceivable that the smallest businesses will be severely impacted.
At the end, only cigars and cigarillos won’t be taxed, in Pennsylvania. Other smokeless tobacco products like nicotine gums will be taxed as well.
Professionals are organizing. A protest before the Pennsylvania State Capitol is being prepared with a on goal: ABANDON TAXES.