EU Countries Push for New Tax Laws on E-cigarettes

According to Business Standard's report on December 9th, 16 EU countries, including the Netherlands, have requested the European Commission to propose new tax laws in the coming months in order to tax new tobacco products such as e-cigarettes. Currently, these products are not covered by existing laws.

This initiative is led by the Netherlands and supported by Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia, and Portugal.

Finance ministers from various countries expressed in a joint letter to the European Commission that the current EU Tobacco Tax Directive, established in 2011, is in urgent need of updating. Due to the lack of harmonized regulations for e-cigarettes, countries are currently implementing varying rules and levels of excise taxes, which is distorting the functioning of the EU single market.

According to the joint letter, most e-cigarette products are not taxed like traditional tobacco products under current regulations. Due to the continuous introduction of new products by the tobacco industry, the existing regulations are inadequate to address the challenges faced by member states governments.

The revised EU tobacco tax law, originally scheduled to be introduced by the end of 2022, has been delayed. Governments of various countries are hoping that the new European Commission, which took office on December 1st, will urgently address this issue.

Currently, the European Commission has set some regulatory standards for e-cigarettes, including restrictions on nicotine content and requirements for labels to indicate that they are not intended for non-smokers. Manufacturers must also register with the government before selling their products.

However, specific regulations still vary among countries. For example, in France, those under the age of 18 are prohibited from purchasing e-cigarettes, and their use is banned in certain public places such as universities and public transportation. In 2013, Italy lifted the ban on using e-cigarettes in public places, but their use near schools remains prohibited. France has proposed a total ban on disposable e-cigarettes. The German Federal Council has recommended that the government push for a similar ban on disposable e-cigarettes to be implemented across the entire European Union.