According to some research in the field, tobacco tax may cause young people to use electronic cigarettes more often. Let’s go through some research and discover a reputable payments company for a reliable and low-cost e-cig merchant account for your e-cig business.
Tobacco Tax in the U.S.
According to the World Health Organization (WHO), 60 countries are to meet the global target of reducing tobacco use by 30% from 2010 to 2025.
In the U.S., federal, state, and local governments are responsible for tobacco taxation. Tobacco product taxes are of two types: the unit tax per pack of cigarettes, and the ad valorem tax based on a constant fraction of wholesale or retail price.
These taxes are imposed on various tobacco products, such as cigarettes, chewing and smokeless tobacco, and e-cigs and related vaping products. And taxes differ from tobacco product to tobacco product.
Specifically, all states and the District of Columbia have taxes on cigarettes, but rates aren’t the same in these areas. For instance, in Missouri, you can find the lowest state cigarette tax rate at just $0.17 per pack. In the District of Columbia, you can find the highest state-level rate at $4.50 per pack.
Tobacco Tax vs Higher use of E-cigs Among Youngsters
E-cigs have gained higher popularity as an alternative to traditional cigarettes and other tobacco products in recent years. The current use of e-cigs among young adults has grown from 2.4% to 7.6% between 2012 and 2018 in the U.S. E-cigs prevalence among all adults was 3.2% in 2018.
According to a new University of Queensland study, tobacco product taxation might be connected with higher e-cig use among youngsters. In addition, according to the Journal of Risk and Uncertainty, higher taxes on traditional cigs cause adults to smoke less often and use e-cigs more often. Similarly, higher e-cig tax rates have led to a rise in traditional cigarette use and cut vaping.
Are you in the tobacco industry? Do you need secure and cheap merchant processing services, including an e-cig merchant account from a reputable provider? Consider working with a reputable high risk payment processor in the U.S. that knows the ins and outs of your industry and works with every merchant to provide the best-suited merchant services to specific business needs.
The Link Between Tobacco Taxes & Higher Use of E-cigs Among Youngsters
Some studies in the field reveal that tobacco taxation causes young adults to use e-cigs more often. Make sure to work with a reliable high risk payment expert to get fast and easy access to the payment processing solutions you need.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high risk merchant account processor in the country that provides the safest and cheapest e-cig merchant account in the industry. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.