Tumbling tobacco taxes have lit a fire under anti-vape campaign, says e-cig firm

Tumbling tobacco taxes have lit a fire under anti-vape campaign, says e-cig firm

Falling tobacco taxes have sparked an anti-vaping campaign, according to new analysis.

US states are paid revenues based on cigarette sales annually by tobacco companies under a settlement which promises them over 200 billion dollars.

But latest research from a leading UK e-cigarette company, shows that many US states who receive this cash have used the revenues to finance tobacco bonds.

California, which receives the most money, is behind on its tobacco bond payments and has spent 75 million dollars on a campaign to demonise vaping, according to ecigarettedirect.co.uk.

States need to pay up to 76 times the amount they originally borrowed despite lower revenues.

And while Public Health England estimates vaping is around 95% safer than smoking, it still receives negative press from US states who face billions of dollars in losses from these revenues, and in some cases face effective bankruptcy.

States are supposed to spend a portion of this money on smoking prevention and treatment of related diseases, but many have reinvested cash back into tobacco production.

James Dunworth, chairman of E-Cigarette Direct, said: “Vaping is a disruptive industry which threatens over USD700 billion in worldwide tobacco revenues and USD250 billion in tax revenues. It would be naive to think that those threatened by vaping would take no action.

“Negative stories around vaping are keeping smokers smoking, and need to be viewed with a sceptical eye rather than being taken on blind faith.”

BLOG: https://www.ecigarettedirect.co.uk/ashtray-blog/2019/05/vaping-lost-tobacco-revenue.html 

Origional sourcr: PRFire.com