Last February, Vermont lawmakers had proposed a 92% wholesale tax on vaping products and other electronic devices, in the hope that it would generate $1.1 million in revenue in the fiscal year 2022.

Vermont Lawmakers are hoping that this harsh tax which would apply to all electronic cigarette products, including devices and e-liquids that do not contain nicotine, would generate $1.1 million in revenue in fiscal year 2022. All revenue generated would be deposited into the State General Fund.

The “Tobacco Products Tax” expanded the existing definition of “other tobacco products”, and now includes:

  • E-cigarettes.
  • Vaping hoodies.
  • Vaping liquid cartridges.
  • Vaping liquid.
  • Repair parts that can only be used in vaping devices.

This tax could lead to increased smoking rates

Meanwhile, many public health experts are worried that this tax will ultimately increase the number of local smokers. Research keeps indicating that vaping products are significantly safer than combustible cigarettes and also that they are the most effective smoking cessation tools to date. Hence they keep pointing out, any taxes imposed on the products should be relative to their risks.

Sadly, this Vermont tax is not only not relative to the products’ risks, but it goes on to the other extreme imposing a duty that is almost twice as high as the per pack tax rate on cigarettes, which is calculated at about 47%.

Meanwhile, in addition to this new tax, the state of Vermont has also raised the age to purchase tobacco and vaping products to 21 and has put in place restrictions to sell e-cigarettes online.

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