On October 27, according to foreign reports, the Swiss government has proposed to amend the “Tobacco Law” and impose new taxes on e-cigarettes. Parliament has been called to support the proposal, which is expected to bring in additional tax revenue of around 13.8 million Swiss francs ($13.8 million) a year.
The proposed tax rate for reusable e-cigarettes is CHF 0.20 per milliliter of nicotine-containing liquid. For single-use e-cigarettes, the government is targeting CHF 1 per milliliter of liquid – regardless of nicotine content.
What is the purpose of levying consumption tax on electronic cigarettes?
When e-cigarettes were not yet regulated, many people said that e-cigarettes were a lucrative industry, because the production cost was low, but the sales price was high, and there were no corresponding management standards for e-cigarettes, especially in terms of import and export. In principle, many e-cigarettes are made with illegal products. For example, fruit-flavored e-cigarettes contain many dangerous chemical raw materials. In order to improve this market situation, e-cigarettes were launched on October 1. All the fruit flavors are forcibly removed from the shelves, and a child lock must be installed on the cigarette pipe to prevent children from smoking.
The management measures for electronic cigarettes are constantly being implemented, and this action to collect consumption tax will definitely bring a greater blow to electronic cigarettes, because these tax rates will put a lot of pressure on many electronic cigarettes. This regulation will also reduce all profits in e-cigarettes.
The profit of electronic cigarettes has been discussed before. From the factory production to the retail link, there will be very huge profits. It takes less than two minutes to make a simple fruit-flavored pod, and the cost price is less than 10 yuan. However, the sales price is more than 30 yuan, and many dealers and retailers will take 60% of the profit, and e-cigarette companies can earn nearly 10 yuan for each e-cigarette. In general, the entire industry is in chaos, but this time for The regulatory measures of e-cigarettes can be said to be very strict, redefining e-cigarettes, and implementing regulatory strategies for them.

Source: Comprehensive network finishing

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