Economy

E-cigarettes to cost more on health, abuse concerns

vaping

This photo illustration shows a man exhaling smoke from an electronic cigarette in Washington, DC, on September 12, 2019. PHOTO | EVA HAMBACH | AFP

The cost of electronic cigarettes and vapers is set to rise after Treasury changed the way of calculating taxes on liquid nicotine products.

Treasury Cabinet Secretary Ukur Yatani has proposed to change the taxation regime for liquid nicotine to Sh70 per milliliter.

Currently, the product is taxed at a rate of Sh2,525 per cartridge, meaning that units with high capacity can attract tax at a significantly lower rate than that proposed by Mr Yatani.

The regulation is meant to constrain access and consumption of the new form of tobacco which is popular among young people.

There has been a high proliferation of products with liquid nicotine such as vapes, vaporiSers, vape pens, and e-pipes in the markets which have been used as a substitute for conventional cigarettes.

“In recent years, innovations in the tobacco industry have led to the introduction of new products beyond e-cigarettes. These products continue to negatively affect the health of our citizens,” Mr Yatani said.

“The design of these products and their taxation regime makes them easily accessible to users including to school children and the youth, thus leading to nicotine addiction and consequently smoking and use of other drugs.”

The tax is set to increase retail prices and potentially discourage the production and distribution of the products. Young people have been drawn to the new cigarette alternatives which experts believe can cause as much damage as traditional tobacco products.

[email protected]