On September 17th, Jason, the diplomatic assistant and public relations representative for 2FIRSTS, conducted an interview with Dustin Dahlmann, the President of the European e-cigarette Association (IEVA).
Europe Electronic Cigarette Association (IEVA) President Dustin Dahlman (left) with ECCC Foreign Affairs Assistant and 2FIRSTS International Public Relations representative Jason.
The prospects for the electronic cigarette market are promising.
Jason: Do you have a positive outlook on the future of the electronic cigarette market? Translation: Jason asked if the interviewee had a positive outlook on the electronic cigarette market in the future.
Dustin believes that the future of the e-cigarette industry is very promising.
Open-ended products have had considerable success in the past decade; electronic cigarette stores have seen good sales and have converted millions of traditional smokers to electronic cigarette users. Disposable products are bringing us an unprecedented number of customers; many smokers have never tried disposable electronic cigarettes before, but once they do, they become loyal customers. We believe this will be a trend, at least it was last year, and I think the outlook for next year is very bright.
We believe there is room for improvement. While our products are widely distributed in dedicated e-cigarette stores in Europe and other countries, we regret that their adoption in smokable public places such as supermarkets, gas stations, and convenience stores is not high. We believe that electronic cigarettes should be available at more retail outlets, beyond just specialized stores.
The EU tobacco tax policy is set to be implemented by the end of the year.
Jason: The European Union is currently considering legislation to impose taxes on e-cigarettes. What is your prediction regarding these rumors? Can you estimate how much value-added tax the European Commission is likely to impose on e-cigarettes?
Dustin stated that it is difficult to say, but up to this point, 16 out of 27 European Union member countries have introduced tax policies on tobacco products, with an average tax rate of 15% per milliliter. For example, Germany initially had a tax rate of 16 points, which is already higher than the average, but they plan to increase the tax rate to 32 points in the future.
Jason: This has doubled.
Dustin expressed concern over the high taxes on e-cigarettes. He doubted that the EU Commission would propose any measures to alleviate the tax burden, such as a tax of 2 euros on 10ml products, which would equate to a tax of 20 cents per milliliter. The current tax rates remain unclear.
The European Commission has stated that they drafted a tax bill at the beginning of the year, but its implementation has been postponed several times. I predict that the bill will be passed by the end of this year, and we will then know the exact value-added tax (VAT) rate. However, at this point, it is difficult to determine whether there will be any tax imposed, or if it will be a rate of 10 or 20 percent. We will continue to monitor this event and communicate with our partners in China as soon as the bill is passed.
IEVA hopes to preserve the diverse flavors of electronic cigarettes.
Jason: Thank you for informing us. We have recently heard that there may be a ban on flavors of e-cigarettes in Europe. What are your thoughts on this?
Dustin stated that an increasing number of EU member countries have introduced similar bans. They are currently negotiating with them, but the trend cannot be stopped.
Firstly, in Denmark, the use of flavors has already been banned. In the Netherlands, it is set to be banned soon. Similar discussions are also being heard in other countries such as Germany.
In the coming months, this will be our greatest challenge. IEVA hopes to preserve the variety of flavors available for electronic cigarettes. To achieve this, we need strong support. We have spread this message through various media outlets, stressing the importance of flavors, particularly for the generations of vapers who have switched from traditional cigarettes.
I want to emphasize that we will do everything in our power to fight against this ban, which so far is only on a national level within Europe. Moving forward, we will actively participate in the development of TPD3, which is being led by the European Commission and was officially launched a few months ago. This is a challenging project, but it is essential that we ensure the flavor ban is not included in this directive, as long as we have enough influence and resources. Therefore, our association must become strong enough to make a difference.
Jason: You mentioned earlier that the Netherlands is planning to ban flavored e-cigarettes. Is this a definite decision?
Dustin confirmed that the Netherlands has introduced a form that lists a range of production materials, including approximately 16 to 17 additives that are permitted for use. However, all e-cigarette raw materials beyond this list cannot be used. Therefore, only tobacco-flavored e-cigarettes are allowed in the Netherlands, and all other flavors are subject to the ban.
Jason: Okay, thank you for agreeing to our interview.
Dustin expressed gratitude towards his Chinese friends and specifically thanked Jason for his great work. He welcomed their team to visit Europe and also mentioned his willingness to visit China and the ECCC at his earliest convenience. He acknowledged the crucial role that they have played in supporting their endeavors and extended his sincere appreciation.
To read more news and updates about the Germany Dortmund Tobacco Expo, please click on the link below.
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