The European Union will not tax vapor products — at least, not for now. However, the problem can be revisited next 12 months.
The European Commission, which is the executive authority for the 28-member European Union (EU), introduced the decision in a Jan. 12 record to the EU’s Council of Finance Ministers. The report observed a evaluate of the 2011 Directive 2011/64/EU (the “tobacco excise directive”), which mandates requirements and guidelines for taxing tobacco products in the EU.
Vapor merchandise like e-cigarettes and e-liquid aren’t currently included within the tobacco excise directive.
The fee mentioned limited records on the vaping market as a motive to not advocate a “harmonized” taxation scheme for e-cigarettes and different vape merchandise presently. The fee believes facts collected through reporting requirements inside the Tobacco Products Directive (TPD) will permit for a better-knowledgeable choice in the destiny.
European vapers will probable have one fewer recommend on the 2019 talks.
The EU will revisit the taxation concept in 2019, during the next evaluation of the tobacco excise directive. Unfortunately, European vapers will likely have one fewer advise on the 2019 talks. The United Kingdom is leaving the EU, and even if “Brexit” isn’t entire before taxation negotiations begin, the U.K. Is not likely to have a great deal sway in the ones talks.
The fee referred to in its report that “reviews on feasible fitness consequences of e-cigarettes and, therefore, the correct tax treatment largely diverge.” The U.K. Is the best modern EU member whose government basically endorses vaping as a harm reduction device for people who smoke.
Nine EU member states have some form of excise tax — on occasion referred to as a sin tax — on vapor products, according to the Vapor Products Tax internet site. Those international locations are Croatia, Finland, Greece, Hungary, Italy, Latvia, Portugal, Romania, and Slovenia. All of these except Finland actually have a tax on warmth-no longer-burn (HNB) merchandise. Additionally, Cyprus and Slovakia haven’t any tax on e-liquid or vapes, however do tax HNB merchandise.