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Georgia senators passed a bill that would tax e-cigarettes by 7% and raise tobacco purchase age to 21

2020/07/27|Knowledge

Georgia's Senate voted to impose a 7% tax on e-cigarettes and raise the age limit for buying tobacco and e-cigarettes from 18 to 21.

1000puffs Single Use Electronic Cigarette

1000puffs Single Use Electronic Cigarette

"E-cigarettes are designed to keep people away from tobacco, but it has become an industry of its own," Republican Senator Jeff Mullis said. There are good and bad, right or wrong, and for those who smoke a lot, this has curbed this. For those who are just starting out, we would like to curb this situation. "

According to a report released in 2018 by the State Department of public health, a quarter of high school students in Georgia have tried electronic cigarette equipment at least once. This prompted suwani's Republican representative, Bonnie rich, to propose an electronic cigarette law. But the bill failed in March because legislators did not agree that the bill contained a lower tax rate on "improved risk tobacco products" such as snus.

To this end, the Mullis bill increased taxes, which originally only included raising the age limit for the purchase and use of tobacco. After the pandemic flu blockade, the Legislative Council resumed its 2020 session, and some Republican senators called for higher cigarette taxes to help fill the projected $2.2 billion revenue gap.

"Right, wrong or indifference will not be part of this bill," said Brett Harrell, chairman of the house ways and Means Committee Consistent with Harrell's position, Mullis said the tax would not be raised this year, but could be increased in 2021.

At the same time, based on previous studies, studies funded by the National Institutes of Health (NIH) have shown that raising e-cigarette taxes to curb e-cigarettes may be counterproductive, as it will only lead people to adhere to or return to the traditional (more harmful cigarettes).

The study, entitled "the impact of e-cigarette taxes on e-cigarette prices and tobacco product sales: evidence from retail panel data", aims to study the impact of e-cigarette taxes implemented in eight states of the United States. Using data from 35000 retailers across the country from 2011 to 2017, the researchers found that for every 10% increase in e-cigarette prices, sales of e-cigarettes fell by 26%. However, e-cigarette prices also rose by 10%, resulting in an 11% increase in traditional cigarette sales.

"We estimate that for every e-cigarette cartridge that is no longer purchased for e-cigarette taxes, an additional 6.2 packs of cigarettes will be purchased," said co-author and economist Michael pesko of Georgia State University

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