Brussels (Brussels Morning Newspaper) – Sixteen European Union member states asked the European Commission to propose new legislation to revise tobacco taxation in the union to include products like e-cigarettes, or vapes, which are presently excluded under existing regulations.
As reported by Reuters, a joint letter was sent to the European Commission, from finance ministers of the Netherlands, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia and Portugal. They highlighted the necessity for a comprehensive overhaul of the EU’s 2011 tobacco taxation directive. The endeavour, led by the Netherlands, aims to address inconsistencies across member states that have resulted from outdated laws.Â
What challenges arise from fragmented vape tax policies in the EU?
According to Reuters, the ministers voiced concerns over the fragmented strategy for taxing e-cigarettes and other novel tobacco products. While some EU member states have raised their national measures, this has developed an uneven regulatory landscape, deforming competition in the single market.
While the EU has enforced regulatory standards for e-cigarettes—such as limitations on nicotine content and mandatory health warnings—taxation policies vary widely. In France, vapes are restricted for individuals under 18, and their use is prohibited in certain public spaces like universities and public transport. In Italy, a prohibition on e-cigarette use in public was lifted in 2013, though limitations near schools remain.
“Based on the current directive, most of these products cannot be taxed like traditional tobacco products. The provisions of the current directive are insufficient or too narrow to meet the challenges faced by the administrations of Member States given the ever-evolving offerings of the tobacco industry,” the letter noted.
“Due to shortcomings in the EU legislation, Member States have taken appropriate actions at the national level. This has led to fragmentation, an uneven playing field, and, ultimately, to the distortion of our internal market,” the ministers stated.
The push for a new directive follows a pause in updating the EU’s tobacco taxation laws, originally expected by the end of 2022. Governments now expect the new Commission, which started its term on December 1, will prioritize the issue.
