A newly released law in the Pennsylvania state has proven to be a nasty hit to the local vape industry and its community. As it stands, the law places a tax on all vaping products amounting to a whopping 40%. The law was passed last year during summer, but it has not gotten into effect until October, which has caused the prices of vaping products to rise to double their previous price or more.
Small Businesses Closing Up
This has left the local vaping industry in a very bad spot, especially because many vape shops are highly specialized and as such, rather small. This tax has caused such shops to have to close down, since acquiring the same products that they offer can be bought in the neighboring states for half the price and the trip there would still pay off. In perspective, roughly 30% of the shops specializing in the sale of vape products have had to close down, which means that nearly 100 shop owners are out of business with this new tax. Moreover, the usual products such as a small, 5 ml bottle of vape juice which usually cost around $4.99 have now increased in price to $10 or more.
The only way for shops to stay in business is by being able to supply themselves or to diversify their offer, which in both cases can hardly be a possible solution for smaller businesses. Furthermore, the tax has made many vaping product manufacturers stop selling their products in the Pennsylvania state since it has become unprofitable for them to do so. This further cripples the options that small businesses have for resupplying their stock.
Neglecting The Positive Effects
And the fact that vaping has a widely spread culture, almost as much as traditional smoking and that people who are planning to quit smoking oftentimes take up vaping as an attempted step between smoking and quitting is completely neglected or at least it appears to have been when such a law was passed.
There Is Still Hope
Luckily a Senate committee has repealed the 40% tax in April and replaced it with a 5-cents-per-milliliter tax, but it only remains to be seen if this will have any effects in mitigating the damage that has already been caused.