Article by Leona Zhu; Edited by Rui Tian - The era of strict regulation for electronic cigarettes has arrived in Germany, with retail prices expected to rise by nearly 40% over the next few years. The transitional period for e-cigarette taxation in Germany ended on February 12, 2023, and enforcement agencies have begun investigating tax issues in e-cigarette retail stores, signaling the arrival of strict regulation in Germany.
Recently, the main customs office in Münster, Germany raided 15 e-cigarette oil shops, kiosks, hookah shops, and tobacco shops in Westphalia. Illegal e-cigarette products were found in over two-thirds of the shops, including 370 liters of untaxed e-cigarette oil, an estimated tax loss of €60,000 according to the main customs office.
Germany is one of the few countries in Europe that taxes e-cigarettes, with a current tax rate of €0.16 per milliliter of e-liquid. This rate is expected to increase to €0.2 in 2024, €0.26 in 2025, and €0.32 in 2026, leading to a potential retail price increase of nearly 40%. For example, a 10ml bottle of e-liquid currently priced at around €10 (including VAT) will increase by €1.6 with tobacco tax and €1.9 with VAT.
It is worth noting that electronic cigarettes have become increasingly popular in Germany in recent years, with the market growing rapidly. However, concerns have been raised about the potential health risks associated with e-cigarette use, as well as the lack of regulation in the industry.
In response to these concerns, the German government has introduced strict regulations on e-cigarettes, including taxation, packaging requirements, and advertising restrictions. The goal is to reduce the appeal of e-cigarettes to young people and to protect public health.
The enforcement of these regulations is now underway, and it is expected that more e-cigarette retail stores will be investigated in the coming months. As the era of strict regulation for e-cigarettes dawns in Germany, the industry will undoubtedly face new challenges and opportunities."
References:
【1】"Liquidsteuer": Schonfrist für E-Zigaretten-Händler abgelaufen
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