Vape sales not turning a profit due to high tax

Vermont’s 92% vape tax impacts cannabis industry

A law intended to curb the youth use of nicotine vape products is stifling the sale of vapes in Vermont’s nascent cannabis industry. In 2019 Vermont passed legislation that imposed a 92% tax on wholesale purchases of vape products. This is the same year that vaping came under scrutiny after the nation saw an outbreak of illness and death associated with vapes containing Vitamin E acetate and other chemicals. According to reporting from Heady Vermont, cannabis businesses say they’re unable to make a profit on vape sales because of this incredibly high tax. This is making vapes either extremely hard to find or available only for a premium price.

In neighboring Massachusetts, cannabis vapes rank as the second highest selling product behind cannabis flower in a given month. A number of individuals in Vermont have been working on an update to the law that would make selling cannabis vapes more reasonable. Chairman Pepper of the Vermont Cannabis Control Board has also expressed his concern that the tax will cause people to shop on the illicit market where vape products aren’t tested for potency and contaminants.

Read the full story from Heady Vermont on their website here: