EU Introduces New E-Cigarette Tax to Adapt Industry Changes

The European Union is set to introduce a new tax on electronic cigarettes as it seeks to revise the taxation structure of the tobacco industry to accommodate the booming e-cigarette market. The information comes from a source published in CITYA.M.

According to a draft document from the European Commission and a first report from the Financial Times, high-strength electronic cigarette products will be subject to a minimum of 40% consumption tax, while low-strength e-cigarettes will face a 20% tariff.

Tobacco products that are heated will also be subject to a 55% tax, meaning a tax rate of 91 euros will be levied for every 1000 products sold. In addition to this, the changes aim to increase the European Union's minimum consumption tax on cigarettes from 1.8 euros per pack to 3.6 euros, bringing an end to the era of ultra-low cigarette prices in Eastern European countries, where cigarettes can be sold for less than 3 euros per pack.

The European Commission did not immediately comment.

This announcement comes amidst the growing popularity of tobacco substitutes across Europe.

According to data from the Action on Smoking and Health (ASH) organization, the number of smokers in the UK has increased fivefold since 2013, with over four million people actively smoking now.

Despite claims by the English public health authority that electronic cigarettes are about 95% safer than traditional cigarettes, there are still opposing views. Last week, environmental and health groups called for a ban on the sale of disposable electronic cigarettes in the UK, stating that their threat is "rapidly escalating.

In a letter addressed to the Ministers of Environment and Health, 18 organizations including the Green Alliance and the RSPCA have stated that disposable e-cigarettes are unnecessary electronic products that contain plastic, nicotine, and batteries, all of which pose harm to the environment and wildlife when improperly discarded.

This requirement was proposed following a study by Material Focus earlier this year, which revealed that at least 1.3 million disposable e-cigarettes are discarded every week - equivalent to two e-cigarettes per second - enough to fill 22 football fields each year.

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