Alongside all the drama that surrounds negotiations on an infrastructure plan, there’s an enormous nicotine tax reinstated to it.
In the beginning, let’s be clear regarding the infrastructure bill. One of these bills is already in place, which is a smaller bill but not the one that includes the nicotine tax. The statement that provides for the tax on nicotine is more extensive and is currently being discussed by Congress. The bill is often called the Build Back Better Plan. Several reports claim the tax on nicotine was slashed, but the tax on nicotine was later reinstated in the bill.
The Build Back Better bill concentrates on infrastructure. It assigns and establishes rules for power systems, roads, and water systems, as well as internet infrastructure. The reason why there is the nicotine tax is because it’s the largest bill currently being moved. It is much easier to impose an additional tax on a huge statement being pushed through rather than implement the tax on its own. In addition, the Infrastructure bill must fund its costs by taxing vapes as a way to support the account.
Current versions of the tax are only applicable to nicotine products for vaping and pouches. The tax is based on the quantity of nicotine offered. It comes with a naff guideline of $50.33 per 1 810 milligrams of nicotine, which includes both nicotine derived from tobacco and synthetic sources.
As a reference for comparison, a bottle of 120ml with 3 mg will include a $10.08 tax on it, almost doubling or more than tripling the cost of the bottle. This tax is added in addition to municipal taxes, which can be very costly.
Although cigarettes were part of the tax system, it was subsequently taken out of the tax in its current format. In reality, it’s a tax on nicotine but not on the most well-known form of nicotine.
While the bill is sure to be revised, the tax is worthy of concern. Go to the CASAA(Consumer Advocates for Smoke-Free Alternatives) for more details on how you can contact Senators as well as representatives!