For the third year in a row, the Democratic-led United States House of Representatives will not approve a White House / FDA budget request to collect user fees from tobacco manufacturers from manufacturers vapers.
The Trump administration included requests for $ 100 million user fees from vape companies in its FDA budgets for fiscal years 2020 and 2021, and Biden’s White House made an identical request for fiscal year 2022. (Federal government exercises begin in October and end in September.)
The tobacco company fees fully fund the FDA’s Tobacco Products Center (CTP) and all of its initiatives. The CTP does not receive any funding from taxes or other sources. Congress approved $ 681.5 million in user fees for fiscal 2021. The Biden administration requested $ 780.8 million for fiscal 2022, including $ 100 million in vape company fees. .
🚨💵✍️House Democrats just released their FDA spending bill. The Center for Tobacco Products will receive $ 681 million, or $ 99 million less than the amount requested by the Biden Administration / FDA in the form of new user fees on e-cigarette manufacturers.
– Paul Blair (@gopaulblair) June 24, 2021
According to a tweet from Paul Blair of Turning Point Brands, the House Owners Expense Bill excludes the user fee for the vape company from the proposed budget. Blair did not speculate why the fee request was denied.
Democrats have held a majority in the House since January 2019. As the party is generally opposed to vaping and tobacco, it is odd that Democrats have missed the opportunity to punish vape makers three times over. One possible explanation is that Congress believes the fee assessment could legitimize an industry they see as illegitimate.
But that doesn’t explain why user fees were included in two previous Democratic vaping bills, including one that was passed by the House in February 2020 (This bill, which would also have banned vaping flavors and online sales, and added a crushing federal nicotine tax, never received a vote in the Senate.)
Over the past three years, the FDA’s budget requests have contained the same user fee requests and a virtually identical explanation for the need to assess the fees on vape makers.
So, user fees for electronic cigarette manufacturers are no longer the order of the day? Why were they thrown out so quickly?
Looks like Democrats would jump at the chance to impose a new tax, especially on bad e-cigarettes.
Unless that signals that electronic cigarettes are here to stay?
– Freedom of choice (@LanceChurchill) June 24, 2021
“Currently, the Tobacco Control Act does not provide a way for the FDA to calculate user fees for electronic cigarettes and other ENDS products, and certain other reputable products,” the agency notes. “These products represent a growing share of the tobacco market as well as the FDA’s tobacco regulatory activities. The FDA is asking for an additional $ 100 million and is seeking permission to include manufacturers and importers of all reputable products among the classes of tobacco products for which the FDA assesses tobacco user fees.
Tobacco company user fees are calculated with a complex formula which includes a multiple of the federal tobacco excise tax rate for each type of tobacco product. Currently, the FDA collects user fees from manufacturers and importers of cigarettes, snuff, chewing tobacco, cigars, roll-your-own tobacco and pipe tobacco. Cigarette sales account for the vast majority of costs.
There is no federal tax on e-cigarettes or other vaping products, so assessing user fees for vaping manufacturers would require a new fee calculation system. If it was based on sales volume, Juul Labs, RJ Reynolds / BAT, and other mass market manufacturers would likely pay the bulk of the fee.
The FDA also collects user fees from manufacturers of drugs and medical devices. These fees are paid to the Center for Drug Evaluation and Research and other FDA offices responsible for marketing authorization for pharmaceutical products and devices.