Electronic Cigarette Communication will reduce tax if it is approved

Electronic Cigarette Communication will reduce tax if it is approved

Tobacco tax is an important source of tax revenue in China. If electronic cigarettes are taxed, it will also become an important increment of tax revenue. From the information disclosed now, the tobacco tax is likely to be levied according to a certain proportion of the wholesale price. The price of head brand cigarette bombs is high. If the head brand interests are not violated, the government can collect more taxes. On the contrary, if generic distribution seizes the leading brand market, it will also reduce taxes. It should be pointed out that the price of some head brand cigarette bombs is usually 99 yuan, while the price of generic products is about 60 yuan. The industry has been talking about imposing high taxes on electronic cigarettes, and the relevant departments are also soliciting opinions from practitioners. It is estimated that electronic cigarette taxes are involved

Tobacco tax is an important source of tax revenue in China. If electronic cigarettes are taxed, it will also become an important increment of tax revenue. From the information disclosed now, the tobacco tax is likely to be levied according to a certain proportion of the wholesale price. The price of head brand cigarette bombs is high. If the head brand interests are not violated, the government can collect more taxes. On the contrary, if generic distribution seizes the leading brand market, it will also reduce taxes.

It should be pointed out that a head brand cigarette bomb usually sells for 99 yuan, while the generic price is about 60 yuan. The industry has been talking about imposing high taxes on electronic cigarettes, and the relevant departments are also soliciting opinions from practitioners. It is estimated that the tax scheme involving electronic cigarettes will come out soon.

Recently, it has been reported in the industry that the electronic cigarette products that have passed the national standard approval have universal distribution behavior. This caused an uproar in the industry. In the event that the fight against universal distribution has become a consensus, the approval department should be more rigorous. General distribution will not only attack the interests of leading brands, steal the investment and efforts of leading brands, but also be detrimental to the government's tax increase, which will reduce the tax that should be paid.

At present, the top e-cigarette brands have almost all had their products approved, and many e-cigarette products are still applying to seize the last opportunity. The transition period of electronic cigarette supervision will end on September 30. The electronic cigarette products that failed to pass the technical review before this will not be available for sale in the future, leaving little time for each brand.

In the pilot area, there are more than ten e-cigarette brand approved products that can be sold. Some e-cigarette practitioners have found that the two approved products can be used with the first brand of e-cigarette. The insiders believe that this is universal.

Electronic cigarettes include cigarette sticks and cigarette bombs. One cigarette stick can be used for a long time, while the cigarette bombs are easily used up and need to be replaced frequently. For electronic cigarette manufacturers, the sales of cigarette bombs is the core of revenue, which is also the core reason for the attractiveness of the electronic cigarette industry. If a brand's cigarette bombs are replaced by generic products, the value of the brand will be discounted, which is equivalent to making a wedding dress for others.

A leading brand once said that the production and sale of generic cigarette bombs is essentially a parasitic behavior, which is to cling to other people's brands and grab the fruits of their labor, thus obtaining illegitimate interests and obviously violating the principle of good faith and business ethics.

The two brands can pass the technical review. It should be that the specifications of the cigarette rod and cigarette cartridge interface are the same as those of the manufacturer of a certain head, and the approval department has not noticed this. After approval, these two brands can sell cigarette bombs to a head brand user.

Generally, each e-cigarette brand has its own technical route, and people will intentionally or unintentionally pull apart differences from each other, with different specifications, to form their own style. If you are deliberately the same as others, you should pay special attention.

On April 26, the State Tobacco Monopoly Administration released the Instructions for Technical Review of Electronic Cigarette Products on its official website, which described how electronic cigarette enterprises should submit the instructions for technical review, mentioned the topic of "adaptation", and stipulated that if a non self owned product was selected as an adaptation product, the letter of authorization for the licensed adaptation of the product should also be uploaded.

That is to say, the government intends to crack down on generic distribution, protect innovation and intellectual property rights, and require the licensing of adaptive products, which is to let the leading brands take the initiative.

However, the above two products that have passed the examination and approval are relatively concealed. They should have declared the cigarette rod and cigarette cartridge at the same time, and the specification is exactly the same as the head brand. It is still unknown how the regulatory authorities determine this behavior.

Internationally, it is also cracking down on universal matching. On March 1, the United States International Trade Commission issued the latest ban on the import of all unauthorized electronic cigarette cartridges that infringe the patent design of the United States electronic cigarette manufacturer JUUL.

Generally, the price of generic cigarette bombs is lower. For consumers, the quality of generic cigarette bombs is also a concern.