Finance Ministries Call for Harmonized Taxation on E-Cigarettes to Address Market Distortions
Germany, France, and 14 other European Union countries have called on the European Commission to widen the bloc’s tobacco taxation laws to include new products like electric cigarettes, also known as vapes. In a letter seen by dpa on Tuesday, the finance ministries of 16 EU member states urged the Commission to harmonize taxation on vapes across the EU.
The letter highlighted that most of these products “cannot be taxed like traditional tobacco products” under the current regulations. The 16 EU countries argued that the EU directive on tobacco taxation, which determines which tobacco products are to be taxed and how, has become outdated since its last update in 2011.
E-Cigarettes Not Covered by Current EU Tobacco Taxation Directive
When the legislation was last updated, the use of battery-powered heating devices to inhale nicotine through an aerosol was relatively niche. However, the market for these products has grown significantly in recent years, prompting concerns among EU member states.
The absence of EU-wide legislation has led countries to take different legal measures to tax new tobacco products, resulting in distortions to the bloc’s internal market. The 16 EU countries believe that harmonizing taxation on vapes at the EU level would address these issues and ensure a level playing field across the single market.
EU Economy Commissioner to Examine the Issue
EU Economy Commissioner Valdis Dombrovskis confirmed in a press conference that the EU executive arm had received the letter and would examine the issue. The Commission will now consider the request from the 16 EU countries and assess the need for updating the tobacco taxation directive to include e-cigarettes and other new tobacco products.
As the popularity of vaping continues to grow across Europe, the push for harmonized taxation on these products reflects the changing landscape of tobacco consumption and the need for EU legislation to adapt accordingly.
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