Excise systems should not unintentionally disadvantage compliant legal operators while illicit sellers avoid taxation entirely. Tax frameworks must balance revenue generation with market sustainability and competitiveness.

When excise rates create major pricing disparities between legal and illicit markets, consumers are increasingly incentivized to purchase unregulated products outside the legal framework. Effective excise policy must simplify the market for enforcement, so that enforcement can be effective.

Excise frameworks must be continuously evaluated against measurable outcomes including legal market participation, compliance rates, public revenues, and illicit market activity.

Excise tax policy must support public health objectives while encouraging participation in regulated, compliant markets. Legal operators are subject to strict safety, testing, reporting, and age-verification requirements designed to protect consumers.

When excise frameworks create significant price disparities between legal and illicit markets, consumers may be pushed toward unregulated products that operate outside of public health and safety standards. HRC advocates for policy that aligns taxation with broader public health and consumer protection objectives, while minimizing illicit markets.