Proposed tax causes outrage
Posted 25th Mar 2016 to Vaping News
As vapers around the EU gear up for big changes coming in May for the TPD, another announcement has caused further outrage in the vaping community.
According to an article in the EU Observer, EU countries may soon see vaping products fall under the same tax laws as cigarettes. Currently, cigarettes are subject to an excise tax of at least 57 percent, whereas e-cigarettes only have VAT at roughly 20 percent.
In the ministers’ draft conclusions, there is an agreement that “the situation in the market should continue to be monitored and, should the market share of such products show a tendency to increase, the ongoing efforts to develop an efficient taxation method for such products would have to be intensified.”
This basically says that if the sales of vape products continues to rise (which seems extremely likely), they will work even harder to introduce an excise tax (a product-specific tax, rather than a general one that you find on most products).
Obviously, vapers have so far been upset by the request for a tax proposal. An excise tax would undoubtedly raise the cost of vaping, which is currently one of the greater reasons that smokers have to make the switch.
If the Research and Markets 2015-2025 analysis on the future of e-cigarettes is anything to go by, the global market is expected to grow to over $50 billion by 2015. This could mean significant incomes for countries who impose a tax on these products.
This change could be a while off yet, however, as late February only marked an agreement to ask the European Commission for a draft proposal for taxing vape products in 2017. However, this proposal may offer British voters a reason to opt out of the EU in order to attempt to avoid future excise taxes on vape products.