Chinese Government imposing a vaping product tax on manufacturers
Back in November of 2022, the Chinese government has imposed a vaping product tax on manufactures.
The news comes in by a statement by the Chinese Ministry of Finance’s website. The consumption tax rate for e-cigarette products and importers are going to be at rate of 35%; where as wholesalers are 11% (via Bloomberg Tax)
What does this mean for U.S. consumers who buy products imported from China? Read further.
There is an excised tax being targeted to Chinese manufacturers, at “guiding a healthy consumption.” This is partly due to the government’s efforts of tightening control over their vaping industry with manufacture standards and restricting citizen’s vaping options. On top of the consumption tax rate, China will require e-cigarette producers to get a tobacco license.
Despite the surprisingly large tax rate, exported products will not be affect by the new excised tax. A tax refund and exemption policy will be available for those that want to export e-cigarettes, said by Global Times.
Whereas the rest of the world will still benefit from the vapes being created in China, domestic use is being constricted so that the state-owned cigarette industry will continue to gain business. The tax is leveling out the competition and making sure that the cigarette industry will benefit from a low-risk market.
Consumers in the U.S. can vape a sigh of relief, your disposables are safe.
What do you think of the tax? Do you believe it might affect us later on? Comment below on your thoughts.