Babylon Vardex Group sues over illegal tax on ENDS.

Sep.22.2022
Babylon Vardex Group sues over illegal tax on ENDS.
Babylon Vardex Group sues Moscow court over central excise tax on liquid in electronic nicotine delivery systems.

The main distributor of Electronic Nicotine Delivery Systems (ENDS), Babylon Vardex Group, has filed a lawsuit with the Moscow Arbitration Court, declaring the behavior of the Central Excise Tax (CAT) as illegal. The latter demands payment of consumption tax for the liquid contained in the ENDS.


Artem Shevelin, the chief lawyer of Babilon LLC, has explained that in addition to paying consumption taxes on equipment, customs authorities are also requiring liquid consumption taxes to be paid on immersed evaporators. The size of these requirements, which relate to goods imported between 2020 and 2022, has not been disclosed. A preliminary hearing for the claim will take place between September and October.


CAT stated that all activities involving ENDS are legal. The Ministry of Finance also pointed out that a consumption tax must be paid on the liquid used for ENDS. It does not matter whether it is sold separately or as part of a package.


Market experts add that pressure on market participants will only push them into a gray area, rendering legal businesses unprofitable for suppliers and sellers alike. However, the current situation calls for a cross-departmental meeting to discuss ways to avoid potential double taxation issues.


On August 9th, the Russian Ministry of Industry and Trade proposed to advance the label test on nicotine liquids and electronic nicotine delivery systems, and to enforce mandatory labels for these products starting from November 1st, 2022.


Statement:


This article is compiled based on third-party information and is intended solely for industry communication and learning.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity or accuracy of the article's content. The article's translation is solely intended for industry-specific communication and research.


Due to the limitations of our translation abilities, the translated article may not accurately reflect the original text. Therefore, readers are advised to rely on the original text for accuracy.


2FIRSTS is in full alignment with the Chinese government's positions and statements on any domestic, Hong Kong and Taiwan-related, and foreign issues.


5. The copyright of the compiled information belongs to the original media and authors. If there is infringement, please contact us for removal.



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.

German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.
Sep.23
From Vuse, Velo and glo to AI Consulting: Former BAT Content Lead Launches Destreza
From Vuse, Velo and glo to AI Consulting: Former BAT Content Lead Launches Destreza
Former BAT global content lead Andy Parton has left the company and launched Destreza, a London-based AI-native marketing consultancy. Parton previously worked across BAT's New Category brands Vuse, Velo and glo and had also served as Global Brand Lead for Vuse Go. Destreza says it will advise consumer businesses on AI in brand strategy, operating models, capability and agency configuration, using specialist AI agents to support research, strategy and creative development. BAT reported £3.621 billion in New Category revenue in 2025.
Sep.22
U.S. Military Could Test Nicotine Pouches and Vapes for Smoking Cessation as Washington Examiner Cites ZYN and Potential $4 Billion Reduction in Related Defense Costs
U.S. Military Could Test Nicotine Pouches and Vapes for Smoking Cessation as Washington Examiner Cites ZYN and Potential $4 Billion Reduction in Related Defense Costs
The House-passed FY2027 National Defense Authorization Act includes a provision authorizing the defense secretary to conduct a one-year smoking-cessation pilot for active-duty service members. Section 707 lists counseling, nicotine gum and patches alongside what the bill calls "electric nicotine delivery systems," nicotine pouches and heat-not-burn products. A recent Washington Examiner op-ed cited ZYN as an example in arguing for the provision, but the legislation does not name any commercial brand or supplier. ZYN is made by PMI-owned Swedish Match USA, with specified products holding FDA marketing authorizations and modified risk orders.
Sep.20
South Korea Constitutional Court Upholds Volume-Based E-Liquid Tax, With Challenged Rates at KRW 370 and KRW 628 per Milliliter
South Korea Constitutional Court Upholds Volume-Based E-Liquid Tax, With Challenged Rates at KRW 370 and KRW 628 per Milliliter
South Korea's Constitutional Court has upheld fixed taxes on nicotine-containing e-cigarette liquids based on solution volume, ruling that challenged provisions imposing KRW 370 per milliliter in individual consumption tax and KRW 628 per milliliter in tobacco consumption tax do not violate the Constitution. The cases stemmed from historical disputes involving importers that reported nicotine as being extracted from tobacco stems rather than leaves. South Korea has since broadened its tobacco definition to include synthetic nicotine, while current tax laws provide reduced rates for certain products not derived from tobacco.
Sep.18
U.S. Health Groups Seek to Overturn FDA Enforcement Discretion for Pending PMTAs as Altria's Helix, NJOY and AVM Move to Intervene
U.S. Health Groups Seek to Overturn FDA Enforcement Discretion for Pending PMTAs as Altria's Helix, NJOY and AVM Move to Intervene
American Vapor Manufacturers (AVM) and Altria subsidiaries Helix Innovations and NJOY filed separate motions on October 7, 2026, seeking to intervene on the FDA's side in a lawsuit challenging its enforcement guidance for certain e-cigarette and nicotine pouch products with pending premarket tobacco product applications (PMTAs). Seven public health and tobacco-control organizations, including the Campaign for Tobacco-Free Kids, sued the agency in July to overturn the policy. AVM argues that vacating the guidance could disrupt orders, inventory, retail distribution and investments in regulatory submissions.
Regulations
Oct.09
EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
EU finance ministers are scheduled to discuss tobacco excise reform on November 9, 2026, seeking agreement on higher minimum duties for conventional tobacco and a common EU minimum tax framework covering e-cigarettes, heated tobacco and nicotine pouches. A November 5 Council document identifies nicotine pouch taxation as the main outstanding issue. The Irish Council presidency proposes phased increases, reaching 50% of retail selling price or €50 per kilogram in 2032. Sweden has formally said it cannot support the current compromise, objecting to both the proposed nicotine pouch tax burden and the adjustment of minimum rates based on national purchasing power. The package also addresses cross-border personal-use reference quantities, raw tobacco controls and the continued exclusion of traditional tobacco snus.
Regulations
Nov.10