A responsible vapor tax structure should not discourage migration from traditional cigarettes to vapor products. Consistent with this belief, vapor products should carry no tax, or a very low tax.
Excise tax rates on tobacco products should be proportionate to risk. If tax rates on tobacco products are proportionate to risk, smokers may consider switching to potentially less risky, smoke-free products. Vapor products are included with other smoke-free alternatives because these products do not involve the burning of tobacco. They should be taxed at a much lower rate than cigarettes.