Proposed EU Taxation Directive for E-cigarettes

Keyword: To be continued.

The EU currently lacks a unified tax law for electronic cigarettes, but member states can develop their own e-cigarette taxes based on their individual circumstances. For example, starting in June 2022, Germany will impose a consumption tax of €0.16 per milliliter on e-cigarette oil, which will double to €0.32 per milliliter on January 1, 2026.

In November 2022, the London news center of 2FIRSTS has learned that the European Union may propose revisions to the current "2011 EU tobacco taxation directive." The European Commission is drafting proposals to include new tobacco products, such as e-cigarettes and heated tobacco, in the tax category for cigarettes. The European Commission plans to levy a minimum consumer tax on e-cigarette oil, with the tax rate depending on the nicotine concentration of the oil. Member states can choose to calculate taxes based on value, quantity, or a combination of both. The minimum consumer tax rate depends on the nicotine concentration of the oil and cannot be lower than:

Nicotine concentration of less than 15mg/ml is subject to a 20% retail tax or costs 0.10€/ml.

Nicotine levels above 15mg/ml will be subject to a retail tax of 40%, or sold at a rate of 0.30€ per ml.

The maximum retail price should include all taxes and fees. The minimum tax is adjusted based on the purchasing power parity of each member country. According to estimates by 2FIRSTS, after the new tax is implemented, the price of a 10ml bottle of e-cigarette liquid will increase by about 2 euros.

The process of amending the tax bill may begin as early as 2023.

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