A lot of considering reduction or elimination of tobacco products in favor of electronic cigarettes cite reduced expense as a primary motivating factor. But do electronic cigarettes really cost less? As a general rule, most users say yes. Despite the costly initial outlay for a starter kit, upwards of $140, over time those who make a complete transition find their monthly expenses go down.
Electronic cigarettes are reusable to a point, with different replacement schedules for the various components. Rather than buying a pack or a carton of heavily taxed traditional cigarettes, users of the electronic version primarily pay for refills of the vapor-producing liquid, which comes in varying concentrations of nicotine and an assortment of flavors. Once the initial supplies are purchased, average users spend around $40 per month to maintain their habit. What this will save over tobacco cigarette use depends on how much you smoked and what the cost of cigarettes is in your area. In countries with low cigarette taxes, generally those outside of the United States and the European Union, users might find that electronic cigarettes actually cost more than traditional smokes.
Tobacco taxation is the major contributor to the high cost of tobacco cigarettes, and therefore plays a significant part in electronic cigarette savings, which are not currently taxed in the same manner. More than 90% of the tobacco produced globally is used to make cigarettes. Known as a consumption tax, the amount paid by an individual is dependent on the amount consumed. Between 30% and 80% of the retail price paid by the purchase is made up of taxes, resulting in significant revenues for the government from this product.
Tobacco is a popular choice for taxation when additional revenues are required, as the health risks make it an easy target. Studies have shown that every 10% increase in cigarette prices reduces overall use by 3-5% and reduces the number of children who take up the habit by 6-7%. These figures are often cited to suggest benefits to increasing taxes to pay for unfunded government programming, as happened in the case of the IDEA Full Funding Act, currently in Congressional Committee, which would use cigarette taxation to pay for additional educational support for special needs children.
The United States Food and Drug Administration (FDA) originally proposed handling electronic cigarettes as medical devices, which would not have subjected them to tobacco taxation laws. However, manufacturers opposed this through the court system and won, leaving their status under current law unclear. The FDA now states that electronic cigarettes will now come under tobacco regulation, and the agency is in the process of developing specific guidelines. What this may mean for electronic cigarettes is taxation similar to that of tobacco, which will significantly increase the cost to the consumer. Should electronic cigarette prices rise by 30% ? 80%, they will no longer be competitive in terms of cost with traditional cigarettes. Proponents of a price increase include tobacco manufacturers, while opponents include electronic cigarette manufacturers and users.
For the moment, many find e cigarettes are more budget friendly. However, in the words of Keith King, president of electronic cigarette maker Veppo, ?regulation means taxation?, so how long this will remain true is uncertain.
Cost effectiveness is the big issue of vapor cigarette.You can know about different brands of smokeless cigarettes
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Source: http://healthandfitnesstips.biz/vapor-cigarettes-a-cost-effective-alternative-to-usual-smoking
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