The European Commission’s report on a potential anti-vaping tax has just been made public. It confirms suspicions first unveiled by the German newspaper : such a proposed project will not be adopted in the immediate future.
Consequently, no vaping-related tax will be put in place in Europe in 2018.
Entitled DG TAXUD, the Commission’s report was against an e-cigarette tax proposition. Experts believe that a tax on e-liquids would be “premature”. For vape supporters, this is without a doubt an important victory and a major relief.
Facing public health concerns related to tobacco, the electronic cigarette is an attractive alternative. Consequently, the Commission has preferred to exercise caution when taxing e-cigarettes. No decision will be made before 2019, when taxes on tobacco products will also be up for review.
Increased national taxes for the e-cigarette?
If the European Union has rejected the idea of a global vaping tax, member states can still opt for imposing national taxes. Today, vaping products are subject to specific taxes in nine EU countries. Italy, Portugal, Romania and Slovenia have already adopted such measures. Latvia, Hungary, Finland, Greece, and Croatia also followed suit.
per millilitre on e-liquids; this is at the same time that Philip Morris’ Iqos tobacco-heating device benefits from much lower tax rates. In Germany, the Independent Association of Vape Producers hopes to use all of its weight to avoid a similar situation.
The decision not to tax electronic cigarettes and related products on a European level is good news for vapers everywhere. At least until 2019, no European law will be able to tax vape products. However, it will be important to pay particular attention to political decisions made by individual European Union member states.