Exclusive Interview With IEVA： EU Tobacco Tax Policy Will Be Landed At The End Of This Year

 On September 17, Jason, ECCC Diplomatic Assistant and 2FIRSTS International PR interviewed Dustin Dahlmann, President of the European Independent vapor alliance.

 ECCC Diplomatic Assistant and 2FIRSTS International PR Jason (Right) and  Dustin Dahlmann, President of the Independent European vapor alliance(Left)

Electronic vapor products have a bright future

Jason: Are you enthusiastic about the e-cigarette market's future?

Dustin: I believe the e-cigarette market has a very bright future.

 ECCC Diplomatic Assistant and 2FIRSTS International PR Jason (Right) and  Dustin Dahlmann, President of the Independent European vapor alliance(Left)

The last decade has been quite successful for open-ended items; e-cigarette businesses are selling well and converting millions of traditional smokers into e-cigarette users. Many smokers have never tried a disposable electronic cigarette before, but once they do, they become a client. We believe this to be a pattern, at least for the last year, and I anticipate that the forecast for the coming year will also be quite positive.

We believe that there is room for improvement. In Europe and other countries outside of Europe, our products are widely distributed in e-cigarette businesses; nevertheless, we lament that e-cigarettes are not as popular in places where smoking is permitted, such as supermarkets, petrol stations, and convenience stores.

EU tobacco tax to be implemented by year's End

Jason: What are your thoughts on these rumors, given that the EU is presently proposing laws to tax e-cigarettes? What do you foresee the European Commission's VAT on electronic cigarettes to be?

Dustin: It is tough to say. So far, 16 of the 27 EU member states have implemented tax policies, with a 15% per milliliter average tax (of E-liquidl). For instance, Germany began with a 16-point tax, which is already higher than the norm, and we will need to boost the tax to 32 points in the future.

Jason: That is doubled.

Dustin: This is an extremely high tax. We do not anticipate that the EU would release a proposal to cut the tax on E-liquid, such as a 2 euro tax on 10 milliliters of product, or roughly 20 points per milliliter. However, no one can identify what the tax is now.

The EU has also informed us that it drafted a tax bill at the beginning of this year, but its introduction has been repeatedly delayed. I anticipate that before the end of this year, the bill will be finalized, and we will then know the actual amount of this VAT. However, it is difficult to predict at this time; no tax, 10 points, or 20 points are possibilities. As soon as the bill is introduced, we will continue to watch this event and communicate with our partners in China.

IEVA desires to preserve the variety of e-cigarette flavors

Jason: Thank you for the details. We recently learned that there may be a restriction on flavored e-cigarettes in Europe. What do you think about that?

Dustin: An increasing number of EU member states are implementing similar bans. The first country to prohibit flavors was Denmark; the Netherlands may shortly follow suit. We have also heard about this topic in nations such as Germany.

In the next months, this will be our greatest obstacle, as IEVA seeks to preserve the variety of e-cigarette flavors. Therefore, we require solid backing. This message has been disseminated through a variety of media outlets, emphasizing the importance of taste, particularly for generations of e-cigarette smokers and those moving from traditional cigarettes to e-cigarettes.

Therefore, I would say that we will do all in our power to combat this restriction, which, for the time being, exists only at the level of specific European countries. In the future, we will play an active role in the development of TPD3, an initiative led by the European Commission and introduced a few months ago. This initiative has a long way to go, but as long as we have sufficient influence and resources, we must ensure that the taste prohibition is not put into this regulation. Therefore, we must be a sufficiently robust organization.

Jason: You just stated that the Netherlands is prepared to ban flavored e-cigarettes; is this a done deal?

Dustin: Yes. They have introduced a list of raw materials that can be used in the production of vaping products. Approximately 16 to 17 additives are permitted, but none of the raw ingredients for e-liquid can be utilized. Therefore, only tobacco-flavored electronic cigarettes are permitted in the Netherlands; other tastes are not immune from this limitation.

ECCC Diplomatic Assistant and 2FIRSTS International PR Jason (Right) and  Dustin Dahlmann, President of the Independent European vapor alliance(Left)

Jason: Okay, thank you for your time.

Dustin: Thank you. Thank you to all my Chinese friends, and thank you, Jason, I appreciate it very much, you're doing a great job. I welcome your team to Europe, and if it's not convenient, I'll come to China as soon as I can to visit you and visit ECCC. thank you very much, you guys are vital to us.