In the recent past, many consumers have switched from traditional cigarettes to e-cigarettes due to several benefits that they derive from them. For instance, unlike normal cigarettes, apart from being affordable, e- cigarettes do not have the many harmful health effects that normal cigarettes have. But as the majority of people are trying to kick the tobacco habit by turning to electronic cigarettes, Washington governor has proposed an increased taxation on e-cigarettes by 95%.
Although some people supported it, others criticized the proposal. For instance, they posit that the tax proposal will make consumers think that smoking electronic cigarettes is also as bad as smoking normal cigarettes, thereby demonizing it. These would mean companies losing customers hence the government might not even achieve its goal of increasing revenue collection.
Secondly, others have also said that it would make smoking the normal cigarettes to be at par with smoking electronic cigarettes hence it would be very hard to convince smokers to give it a try. And there is evidence that e-cigarettes do help quit smoking. Electronic cigarettes customers’ would also go back to traditional cigarettes. Besides, it would be very difficult to convince prospective customers about the importance of electronic cigarettes.
Lastly, manufactures have said that the tax proposal would also push many well established businesses out of business while at the same time it would take almost half of the revenue from the businesses that still remains thereby grounding them. This would be followed with a reduction in tax revenue due to loss of jobs and the collapse of these businesses.
Briefly, supporters of the policy have said that the focus is not on electronic cigarettes, but rather they are just looking at how they can bring fairness by having the same level of taxation since the electronic cigarettes also have nicotine which is addictive. On the contrary critics have countered this by saying that there is no tobacco in their products. Even though these arguments might be valid, the consumer has the final say on whether the tax is good or bad.