Trump to Impose a $100 Million per Year User Fees on the e-cigarette Sector
President Trump has plans to press a yearly user fee on the e-cigarette industry. The sector will be forced to pay up to $100 million/year if Trump admin budget draft released week ago approved. And the FDA will oversee these funds to ensure all firms comply.
Currently, e-cigarettes merchants are not subjected to similar fees, but many other forms of tobacco-based products. They are, e.g., cigars, cigarettes, and snuff. This financial year alone, the FDA expects to collect approximately $712 million in tobacco industry user fees, with cigarettes making up for over 86% of the whole amount.
According to Trump’s budget draft, the proposal to charge a user fee on the firms in the e-cigarette industry would make sure the FDA is financially able to deal with today’s alarming rate of e-cig use among youth, and the future public health concerns.
The FDA Funding
The Trump admin is anticipating $6.1 billion in FDA funding, a figure that’s $418.5 million over what we have now. And user fees from the drug (including the proposed e-cig fee) and other sectors are expect to account for $2.8 billion.
This new proposed fee (on the e-cig sector) will apply to producers and distributors of vaping products including e-juices, and Congress will have to approve it.
Meanwhile, e-cig merchant account owners are protesting over the fee. Liz Mair of Vapers United disapproved of the charge saying It is a tax, not a ‘user fee. According to her, ‘User fee’ is a term some government officials use when they’re looking to hike taxes without offending merchants. She also proposed that the government should focus on making policies to maintain low vaping taxes low so that smokers can switch to e-cigs.
Quit Regular Cigarettes
While FDA Commissioner Scott Gottlieb agrees e-cigarettes can play vital role in helping adult smokers looking to quit regular cigarettes. He insists they must go through regulatory checks to confirm their risks vs. benefits. He also warned that “no child should use an e-cigarette,” because scholars are still analyzing the long-term effects of vaping.
Elsewhere, Matthew Myers, head of Campaign for Tobacco-Free Kids, warned about the shady details of the proposal. This might be a potentially positive development, but it doesn’t come from the FDA’s. FDA’s need to take strict mandatory action against the habits and products that have led to the youth epidemic. He proposes that the FDA should prohibit the sales and marketing of all flavored e-cigs.
The FDA has been concerned about skyrocketing vaping among youths since multiple sets of federal data. Data conquered that high school e-cigarette use rose around 75 percent between 2017-2018. And now, administrators say they plan to save the next generation from nicotine addiction.
Conditions are worsening for the vaping industries as the federal government and FDA work to improve public safety. But industry players feel this new user fee proposal is a pretext the admin is using to impose a tax on the e-cigarette industry.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker. He’s just as passionate about e-cig merchant account owners as he is with traveling and spending time with his dog Cooper.