As New York’s Economy Reels, Flavor Ban Will Hit Empire State’s Economy With $900 Million in Net Loss and Cost 4,600 New Yorkers Their Jobs
Washington, D.C., April 3, 2020 – The Vapor Technology Association (VTA) said today that the ban on flavored vapor products that is now included in the New York state budget will do little to nothing to reduce youth usage since the FDA already banned the flavored products that it found youth are using . Instead, the total ban will eliminate choice for adults and force adult smokers back to combustible cigarettes or to dangerous and illegal black market substitutes.
“We’re disappointed that Governor Cuomo used a global health emergency to force the New York legislature to pass a ban on flavored vapor products through backroom negotiations and without holding a single hearing or debate,” said Tony Abboud, Executive Director of the Vapor Technology Association. “Last year, a New York Appellate Court put a stop to the Administration’s unconstitutional attempt to pursue its flavor ban agenda. Now, through this questionable process, New York is taking actions that will only drive a widespread return to smoking and usher in a dangerous new black market.”
“The youth issue was addressed when the FDA banned the sale of flavored vapor cartridges and pods – the products it identified were used by youth – and when Congress raised the age to purchase products to 21 nationally. For these reasons, the New York ban on flavored vapor products will only harm adult New Yorkers that rely on these products to quit smoking,” said Abboud.
Smoking combustible cigarettes is the leading cause of preventable death and disease in the U.S. New York’s flavor ban will do nothing but drive New Yorkers back to combustible cigarettes which, according to the New York Department of Public Health, takes the lives of 25,400 New Yorkers every year, or nearly 70 New Yorkers every day. New York’s political establishment has just created the greatest impetus for a new and burgeoning black market as adults seek for new ways to access the flavored products they rely on to stay away from combustible cigarettes.
Abboud added, “Despite this, Governor Cuomo has decided to only attack the adult flavored vapor products market, leaving cigarettes readily available. The use of vapor technologies is a safer alternative for adults who are desperately trying to quit smoking. Now is the time that New Yorkers need more access to their flavored vapor products, not less. Now is the time for New York lawmakers to help small businesses stay in business, not shut them down.”
“The New York flavor ban will shut down New York’s independent vapor industry, forcing hundreds of small businesses to close their doors and lay off thousands of workers. At a time when the Empire State’s economy is already suffering, this anti-small business flavor ban will make it even harder for New York’s economy to get back up and running.”
A recent economic impact report, entitled A Flavor Ban Will Decimate New York Small Business, prepared by New York economists John Dunham & Associates (“Dunham”), finds that a state ban on flavors will result in a net loss to the New York economy of more than $900 million in total economic impact in 2020. Specifically, it would result in the loss of an additional $160 million in tax revenue for the state of New York (on top of the lost taxes from the recently enacted federal ban), virtually wiping out the 20% excise tax that New York passed just last year.
“To be clear, government relief programs will not be able to save or revive the hundreds of small businesses and thousands of workers that the Administration and the Legislature have just permanently cast aside,” Abboud said.
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