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Thread: Should nicotine e-liquid be taxed in Australia?

  1. #1
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    Should nicotine e-liquid be taxed in Australia?

    Ok, I'm not trying to be deliberately inflammatory, and I can guess what the majority of response is likely to be "NO !!"

    However,

    E-liquids are currently not taxed in Australia and cannot be sold containing nicotine. This massively inhibits take up rates.

    This would be some of the "potential" benefits to vapers if they were taxed (at say 20%):

    They would become a legitimately available mainstream product - businesses, markets and employment would be generated almost overnight.
    Take up rates would massively increase.
    Funds collected could be directed back into education and getting more people vaping.
    Funds collected could be used for further research and development of industry standards that protect the vapour.
    The government is currently desperate for funding at all levels in Australia, the idea of income tax increases (or a carbon tax) is politically toxic, so they have a reason to start really liking vaping.
    sc_rufctr likes this.

  2. #2
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    Quote Originally Posted by Waratah67 View Post
    Ok, I'm not trying to be deliberately inflammatory, and I can guess what the majority of response is likely to be "NO !!"

    However,

    E-liquids are currently not taxed in Australia and cannot be sold containing nicotine. This massively inhibits take up rates.

    This would be some of the "potential" benefits to vapers if they were taxed (at say 20%):

    They would become a legitimately available mainstream product - businesses, markets and employment would be generated almost overnight.
    Take up rates would massively increase.
    Funds collected could be directed back into education and getting more people vaping.
    Funds collected could be used for further research and development of industry standards that protect the vapour.
    The government is currently desperate for funding at all levels in Australia, the idea of income tax increases (or a carbon tax) is politically toxic, so they have a reason to start really liking vaping.
    no no and no

  3. #3
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    Yes.

    But no where near as much as tobacco. To do so would be to tax a "behaviour".

    Tax it enough to fund regulations that serve to help the industry grow legitimately- e.g enforcing child proof caps, accurate labelling of nicotine and ingredients, etc.

    Some US states are doing by the millilitre. North Carolina taxes e-liquid at 5 per ml all eliquid. That is, regardless of the nicotine content. This is really smart as it avoids the temptation of some e-liquid manufacturers cheating the system, plus it legitimises e-liquids, and not as tobacco products.
    JenJ and Waratah67 like this.

  4. #4
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    Going by the way tobacco products are taxed within aus,1L of liquid nic or juice containing nic would be around $400-500 in tax+ the price of the product but if it's not classed as a tobacco product it should only have a 10% gst added to it.Pretty sure the gov don't want to loose that chunk of revenue.These are the only 2 tax options I can see anyway but I'm not an economist

  5. #5
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    Why not?
    It would pay for more first class trips overseas for the Pollies & their family's.
    Cath Mort likes this.

  6. #6
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    No, and here's why.

    Preparations for oral consumption, such as tablets and chewing gum containing nicotine, intended to assist smokers to stop smoking are duty free in the customs tariff.

    Our e-liquids ARE NOT intended to assist smokers to stop smoking, if they were - they'd be policed by the TGA. <-- BAD

    Our e-liquids are classified according to the international rules of classification and interpretation elsewhere in the tariff, they are not specifically mentioned, and the duty rates are 4% for anything over 1000aud.

    E-liquids are not a tobacco product, and therefore do not fall under the classification of exciseable goods.

    Nicotine, on the other hand is classified to another area of the tariff.

    Its a Vegetable Alkaloid, and guess...WHAT?! its duty free too.

    So, essentially - for a '20%' tax to be imposed on it, you'd have to get all of the government departments to consider that its a huge, profitable market, and reclassify the product...and given that all of the classifications internationally are remotely linked...you're going to have to convince EVERY BODY.












    ALSO,



    The government departments advising the government departments, who advise the government departments don't want to increase the 'intake rate'.
    Last edited by D Jovanovic; 31-07-14 at 05:53 PM.
    akef38, Fawks and soulvaper like this.

  7. #7
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    People would just buy overseas as it wouldnt catch GST if bought from over seas, taxing it may stop us from being able to import it in.

  8. #8
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    Quote Originally Posted by hoekone View Post
    People would just buy overseas as it wouldnt catch GST if bought from over seas, taxing it may stop us from being able to import it in.
    Not quite (not all imports are GST free, not all pay GST, but all imports CAN be subject to GST)

    Since GST's inception, Imports are the first things to pay GST, the importer then claims the GST and bills it to the purchaser, the purchaser pays it to the importer and the importer remits it to the government. (loose description)

  9. #9
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    If it allowed the sale of pre mixed e-liquids in Australia I would have to say yes but only at a reasonable rate, possibly a smaller amount on pre mixed imported e-liquids and a slightly lager amount on strait nicotine,, It boggles my mind that I cant buy 3-6mg e-liquid but can buy 100mg nic seems backwards

  10. #10
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    Legitimisation should never be conditional on taxation .... amazing the mindset we have allowed ourselves to be directed in .... if the govt can make a buck then it is good ! ......"good" is not measured by the amount something props up coffers

    Taxation is supposed to be the fair and equitable proportion of wealth deemed necessary to support societal needs ... not a tool to leverage the populace with ... but then again I am an old dinosaur

    We all KNOW if anyone in power was concerned with the damage smoking does to society , they would be investing money in finding out if indeed vaping is the necessary route of Harm Minimisation that we are convinced it is ... instead as vapers, we find groups and Govt bodies, that should be doing just that, running interference and protecting the cash flow and status quo .

    Don't encourage the Bastidges by legitimising thru yet another taxation grab
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