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Ecig Prices Rising Due to Taxing is a Legitimate Fear

By Tyler McCanus

Thursday June 11, 2015
ecig taxes could increase the costs of your vaping supplies by 40%

Ecig prices have always been a source of attraction for smokers, as they saw the top cigarette brands taking in more of their hard earned dollar. In fact, the cost of electronic cigarettes has always been a selling point ever since the industry ramped up its sales in the US. The ability to not only make the switch to something that didn’t make you stink among other things, but also save money while you are at it? That seemed too good to be true at the time. It even made some people cynically sure that ecigs were some sort of a scam. Another way to get money out of the hands of consumers and into a product that contained something called eliquid.

We now know that ecigarettes are certainly no scam. This is something pioneers within the industry understood early on. With the push to get products out to the bigger market, more competition came in and tried to get a piece of that growing pie. This is the ideal situation for capitalism and it created the ideal outcome: lower ecig prices. Take a look at how much kits and carts and whatnot were going for only a few years ago and how much they go for now. The mass marketing of the electronic cigarette has brought vapers into a new world of reduced prices, even lower than the prices that drove them away from top cigarette brands and into something called vapor.

Ecig Prices To Be Affected By N.C. Tax

Ecig prices are likely to rise with new tax trendUnfortunately, once Uncle Sam sees there is unfettered commerce going on and realizes he isn’t getting a part of it, things become more complicated.

We saw the same type of thing happen when smokeless products like snus first came to the market. After they began to make their mark, there was incredible push back from government organizations, which was only cooled down after taxation went into effect.


That’s right, taxes are the name of the game here and they, or the lack of them really, play a huge behind the scenes driving force as to why we are hearing so much about ecigarettes and their supposed negative qualities. When there is money to be brought in the government will stop at nothing to do so.

If you think this sounds like mob mentality, we can’t blame you and we can’t totally disagree with you there. On the surface though, politicians are selling this as the logical next step for a product they deem as in the tobacco family rather than the alternative that it is. That’s where you get things such as the recent signing into law by Governor Pat McCrory a tax in North Carolina that will raise ecig prices for retail shop consumers there. The tax amounts to a 5 cent increase per milliliter of eliquid in the state which houses many top cigarette brands and produced the most tobacco in America. North Carolina becomes only the second state, after Minnesota, to pass into law a tax specifically targeting ecigarettes or eliquid.

Even though North Carolina produces the most tobacco of any state, they do have a cigarette tax. That tax adds 45 cents to each pack of traditional tobacco cigarettes, much lower than in some other states. This is what states have become used to and they are now seeing an opportunity to slide in ecigs as the next in line to fall to a policy of taxation.

Eliquid Pricing Online Could Help Offset Taxes

ecig prices aren't as high online, best way to combat new taxWe wouldn’t be surprised if other states stake out similar goals, looking to reap the money of a fast growing multi-billion dollar business.

This brings up a couple of points in spite of the taxation aspect and the expected rise in ecig prices.

In the first point, we question if this hidden reason has been driving so much of that bad press that is somehow manufactured out there.

Some of these stories are so far off base in how they see ecigarettes that it makes us wonder if we are even talking about the same product concept. We will be very curious to see how policy may or may not change if (when?) taxation takes effect in more states. Will we still hear the same vitriol from some commentators or will they take a more measured approach? Taxation does have a way of mainstreaming a product, so will ecigs be more accepted at least?

The other point, another question really, is how this will affect the online marketplace where most of the top ecigarette brands sell their wares. Some seem to charge tax, while others don’t or only do in certain states. But regardless of the possible tax for online purchases, you can generally find better ecig prices online anyway. Ecig brands like VaporFi and Green Smoke are of a very high quality and you can get some pretty good deals most of the time. While we already have our own reasons for preferring to purchase on the web, this would simply add to that.

Even as Big Tobacco brands push themselves into stores across America, there is still a large market for purchasing ecigs online. We suspect this market will continue to grow and serve as a primary source of innovation in the industry. Despite their cash, Big Tobacco hasn’t been able to surpass some of their much smaller competitors in the innovation category. Whatever happens from here, just be prepared to see taxes appear elsewhere and make your calculations accordingly.





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