Famously known as the “City of Brotherly Love”, Philadelphia, Pennsylvania, the vape scene in particular, could use a nice big bear hug… or better yet, a break from the levy of taxes imposed by the state legislature last year which has had a detrimental effect on the industry.
It’s been nearly a year since the tax went into effect. In this time, a 40% tax on purchases from wholesalers has stripped retailers of nearly $13.7 million in revenue, (according to the Department of Revenue), and has forced over 100 vape shops to close their doors. In theory, shops with a $100,000 inventory would have to come up with an extra $40,000 just to stay in business, according to The Inquirer. Though this tax has represented another source of crucial revenue for the state of Pennsylvania, vape shop owners see it as an unnecessary impediment.
In an effort to stay afloat, several vape shop owners have reworked their approach in order to lessen the blow and keep customers happy. In some instances, shop owners have incorporated a profit-margin cut with some higher prices in order to keep the doors open and the lights on.
But there is a silver lining of hope in all this.
With Public Health England’s recent announcement to completely side with vaping and the FDA’s July announcement stating that it would begin efforts to encourage development of innovative tobacco products that may be less dangerous than cigarettes, many vape advocates feel that the industry could be taking a turn toward e-cigarettes.
Read the full article here.