Even though there is a common European Directive on electronic cigarettes, the TPD (Tobacco Products Directive), each country can adapt and transpose this directive into national legislation.  The Luxembourg government has therefore announced a new tax on both manufacturers and importers of e-cigarettes. This measure, which is already challenged by industry professionals could inflict a devastating blow to e-cigarette sales in the Grand-Duchy.

This tax which will shortly be implemented. It will target all new products sold in Luxembourg. Both manufacturers and importers of e-cigarettes and refills will need to notify each and every product launched on the market to the Health Department. A 5.000€ tax will come along every notification. This extremely burdensome requirement is included in the national anti-tobacco law and will tax e-cigarettes similarly to tobacco products.  It is hard today to evaluate the impact of such a measure, but we can fear that some specialized vaping stores will have to close in the coming months.

This taxation is part of a Luxembourg legislation that takes a strong stand against vaping. For industry leaders, the first consequences will appear shortly. Manufacturers that are established in Luxembourg will most probably move to France or Germany instead of paying this tax that could threaten their activity.

This new tax confirms the government’s position on vaping. In 2016, Lydia Mutsch, the Health Minister had already declared that vaping was similar to smoking.

Indeed, contrary to neighboring countries, the Grand-Duchy reckons that vaping is not a tool to quit smoking. It is instead a « gateway to tobacco use » for the youth.