5150sick
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Vape shop calls tax 'pretty much a catastrophe'
- Thread starter 5150sick
- Start date
Oh dear..disaster! The tax on cigs in the UK goes up every year. I am hoping that as the UK government is pro vaping they will not tax vaping stuff the same way they tax cig. However as smokers pay for the health care of non smokes a lot of revenue will be lost if vaping continues to gain momentum, so watch this space!
By taxing the crap out of vaping, they are creating a black market. The greedy fucks have no idea that people will still vape and get their stuff else wheres. Vaping is here to stay.
States taxed the shit out of booze and beer leading up to prohibition, more booze and beer was consumed during prohibition that any other time in history, because it was illicit and illegal. The only reason prohibition was repealed was because the mob was making money hand over fist supplying it and the feds were spending tons of money trying to stop it. It all comes down to money. The state wants the taxes, at a punitive level to offset the Tobacco money they are losing. They have to pay back the tobacco bonds they sold. The money from the bonds didn't go to anti-smoking and health programs, it went into the general fund to be pigged out on by politicians doing pork barrel politics.
States taxed the shit out of booze and beer leading up to prohibition, more booze and beer was consumed during prohibition that any other time in history, because it was illicit and illegal. The only reason prohibition was repealed was because the mob was making money hand over fist supplying it and the feds were spending tons of money trying to stop it. It all comes down to money. The state wants the taxes, at a punitive level to offset the Tobacco money they are losing. They have to pay back the tobacco bonds they sold. The money from the bonds didn't go to anti-smoking and health programs, it went into the general fund to be pigged out on by politicians doing pork barrel politics.
History has a odd way of repeating itself...
they never approved that tax - or any tax on vape products as far as I know. One attempt was removed in conf committee and another attempted separate bill passed the house and died in the senate.
I think the taxing will discourage nicotine use is a false narrative designed to hide the fact that they are greedy pigs that simply want the tax money for their spending on wasteful projects that benefit their buddies, and don't give a damn about the consequences to their constituents.
As it is, they're already routinely catching truckloads of black market cigarettes. Do they really think such things won't increase?
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Yep, local shop here in Philadelphia suburbs said he's going to "eat" the tax and not pass it on to consumers. Problem is, that's a huge chunk of your margin that is going to disappear.
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This tax is a real problem if a shop has lots of low-margin inventory. But if a shop has little low-margin inventory and sells primarily "house" juice, having their cost on the ingredients increase by 40% likely doesn't affect margins all that much. Think about it: If the ingredients to make that $15 bottle of juice cost $1.50 (and we DIYers know that IS about what it costs), the cost of that bottle of juice increases to $2.10. So instead of $13.50, the shop makes $12.90 on that sale.
5150sick
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They would have to start charging $14 for their $10 house juice and $84 for their $60 RX200.
it's not a wholesale tax, it's a sin tax.
also if you buy vape gear online you are expected to keep a list and send a check for 40 cents on the dollar at tax season.
Although I don't spend all my time there, I'm nominally a resident of PA, and I'm reasonably familiar with the relevant section of PA HB 1198.
If you're a shop owner, you pay 40% on the wholesale value (your cost of the goods). If you're a consumer and import stuff into the Commonwealth yourself, you're supposed to pay 40% of your cost (which will be retail). The toughest part for for shops the floor tax (40%) on the wholesale value of all their inventory as of October 1...