Massachusetts suffers million-dollar loss from vape smuggling

Mar.20.2023
Massachusetts suffers million-dollar loss from vape smuggling
Massachusetts loses millions in tax revenue due to cross-border e-cigarette smuggling, despite statewide ban on flavored products.

According to a report by the Eagle Tribune, on October 27th, 2019, the state of Massachusetts banned the sale of flavored cigarettes and e-cigarettes throughout the entire state. However, smugglers have been able to bring these products into the state through underground smuggling networks. As a result of the smuggling of e-cigarette products, the state lost millions of dollars in tax revenue in 2022.


Cross-border smuggling remains the main challenge for tobacco law enforcement.


According to a new report from the Multi-Agency Illegal Tobacco Task Force, a large amount of illegal and untaxed electronic cigarette products related to cross-border smuggling were seized last year. In the previous year, electronic cigarettes provided Massachusetts with approximately $16.3 million in tax revenue. As more smokers quit their addiction, the state's tobacco tax collection has gradually decreased from $610 million in 2016.


According to the report, over 140,000 untaxed e-cigarette products related to cross-border smuggling were seized by authorities in 2022.


The report stated that inspectors frequently encounter or seize mint-flavored cigarettes purchased in neighboring states, as well as flavored electronic cigarettes and cigars purchased from unlicensed dealers.


The number of seized electronic cigarettes in 2022 decreased compared to 2021, with approximately 210,000 electronic cigarette products being confiscated. However, a report highlights that cross-border smuggling remains the primary challenge for tobacco law enforcement in the state.


Buyers who want to avoid paying taxes.


In 2019, former governor of Massachusetts, Charlie Baker, signed a law banning flavored tobacco products and imposing a new 75% wholesale tax on e-cigarettes. However, the state's high tobacco taxes have led to smugglers bringing products from states with lower taxes and selling them to buyers looking to avoid Massachusetts' tobacco consumption tax.


According to the law, anyone found bringing untaxed electronic cigarettes or vaping products into the state can be fined $5,000 for first-time offenses and up to $25,000 for repeat offenders. These regulations also permit law enforcement to seize untaxed electronic cigarettes and any vehicles, boats, or planes used for smuggling.


Currently, Massachusetts has the second-highest tobacco tax in the country, second only to New York. The high tobacco tax has driven many smokers to neighboring New Hampshire, which taxes each pack of cigarettes at $1.78, compared to Massachusetts' $3.51 per pack. This price does not include the state's 6.25% sales tax.


Further reading:


After a ban on flavored tobacco products in the state of Massachusetts, tax revenue has plummeted by $127 million and black market activities have flourished.


A ban on menthol cigarettes in the state of Massachusetts has resulted in a 33% decrease in sales.


References:


The state of Massachusetts is facing difficulties in combating the smuggling of vaping products across state lines.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Philip Morris Italia Invests €1 Million to Upgrade Retail Network, Supporting 45,000 Tobacco Shops in Smoke-Free Shift
Philip Morris Italia Invests €1 Million to Upgrade Retail Network, Supporting 45,000 Tobacco Shops in Smoke-Free Shift
Philip Morris Italia has launched the Trade Academy program, investing €1 million to provide training and development support for approximately 45,000 tobacco retailers in Italy. The initiative aims to strengthen retailers’ capabilities in heated tobacco products, digital tools and consumer services. The move reflects how nicotine companies are increasingly investing in retail networks and frontline capabilities as new nicotine products become more important in the market.
Jul.28
Minnesota Sues Loon as State Enforcement Targets U.S. Vape Brand Operators
Minnesota Sues Loon as State Enforcement Targets U.S. Vape Brand Operators
Minnesota Attorney General Keith Ellison sued Maduro Distributors, Inc., doing business as Loon, on July 15, 2026, alleging that the company illegally manufactured, distributed and sold flavored vapes that appeal to minors.
Jul.16
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA’s proposed foreign tobacco establishment registration and product listing rule remains unfinished, but Accorto told 2Firsts it reflects a shift toward structured oversight similar to medical device and pharmaceutical compliance frameworks. For Chinese and global e-cigarette suppliers, U.S. market access is moving beyond product authorization toward full-chain compliance covering manufacturing, documentation, import control, distribution, retail and marketing discipline.
Special Report
Jul.09
Italian Court Ends Six-Year Cigarette Excise Dispute, Rejecting Damages Claim
Italian Court Ends Six-Year Cigarette Excise Dispute, Rejecting Damages Claim
Italy’s Lazio Regional Administrative Court has dismissed an appeal by Italian Tobacco Manufacturing and Manifattura Italiana Tabacco over the cigarette excise calculation mechanism, upholding the minimum tax burden rules and excluding compensation for smaller tobacco operators.
News
Jun.26 by 2Firsts Perspectives
UK HMRC Urges Public to Report Suspicious Vape Shops in Crackdown on Tax Fraud, Money Laundering and Illicit Tobacco Sales
UK HMRC Urges Public to Report Suspicious Vape Shops in Crackdown on Tax Fraud, Money Laundering and Illicit Tobacco Sales
HM Revenue & Customs is urging members of the public to report vape shops, barber shops and other high-street businesses suspected of tax fraud, money laundering or other illegal activity, with informants not required to provide personal details. HMRC plans more than 30,000 interventions in 2026-27 targeting tax fraud, organised crime and illicit activity, including the sale of illegal vapes and tobacco. The push forms part of a broader UK effort to tackle organised crime on high streets, backed by a £30 million government enforcement programme.
Regulations
Aug.17 by 2Firsts Perspectives
Scottish Vape Display Rules Could Cost Businesses £61 Million, Affecting More Than 11,000 Retail Outlets
Scottish Vape Display Rules Could Cost Businesses £61 Million, Affecting More Than 11,000 Retail Outlets
A Scottish government impact assessment estimates that proposed vape display and packaging rules could create up to £61 million ($82 million) in compliance costs for businesses, affecting more than 11,000 retail outlets. The estimated costs are mainly linked to inventory adjustments, retail storage changes and the resources required for businesses to understand and implement the new requirements. The measures form part of the UK’s broader efforts to tighten vape regulation, particularly around product displays, packaging and sales practices.
Aug.10