A recent court case against cigarette producing companies has gotten everyone amazed. Apparently, a company that makes cigarette rolling machines and another one which distributes them were found liable for taxes and excise. This has brought to the attention of the public major events that are taking place in the cigarette manufacturing industry.
Recent changes in the cigarette manufacturing industry have brought about the new concept of the electronic cigarette. Basically, an electronic cigarette is a new kind of cigarette that does not have a flame, no tar, and most important, no carbon monoxide. The tax that is levied on the ordinary type of cigarettes is determined by the amount of tobacco in them. Having no tobacco in them, the cigarettes are tax free. This has become a tricky situation for the IRS since according to the law; the only type of tax they can charge on electronic cigarettes is just the sales taxes.
This loophole in the tax regulation has seen many companies coming up with variants of electronic cigars in order to take advantage of the opportunity to make huge profits and establish themselves in the market. The production costs of these cigarettes are pretty low with the production being outsourced to cheaper firms. This low overhead cost in production has seen the electronic cigarettes going for far cheaper than the tobacco cigarette. This coupled with the incentive being offered by manufacturers to buyers who buy in bulk has seen the electronic cigarette industry grow at a very high rate.
New companies that are getting into the industry are trying to take advantage of the demand for electronic cigarettes which has grown over the years. Companies are now focused at high sale volumes for their products and to capture as large a market share as they possibly can.
Electronic cigarettes present new opportunities for companies. At the same time this has proved that every area of human life is advancing, thanks to technology.