The European Union is proposing changes to its tobacco taxation laws, with the aim of including vaping products in the same regulatory framework as traditional tobacco products. This comes amid growing concerns about the increasing use of vaping, particularly among younger populations, which could undermine efforts to reduce smoking rates.
Under the proposed changes, stronger vaping products could be subject to excise duties of at least 40%, while weaker products would be taxed at 20%. Heated tobacco products would face a 55% tax or €91 per 1,000 items sold. The proposal seeks to align the taxation of novel tobacco products with that of cigarettes, as part of the EU’s broader efforts to curb tobacco use.
This shift is part of the EU’s larger health strategy, which includes the “Beating Cancer Plan,” aiming to reduce tobacco consumption from about 25% to less than 5% by 2040. The goal is to create a “tobacco-free generation” by that time.
While public health experts support the tax increase as a necessary measure to reduce tobacco consumption and promote healthier alternatives, critics from the vaping industry argue that it could overburden consumers and inadvertently encourage a return to smoking. There are also concerns about the potential rise of illicit trade due to these steep tax hikes.
The proposal still requires approval from all EU member states before it can become law. If enacted, these changes are expected to generate significant revenue while aiming to reduce smoking-related health issues and promote a healthier European population.
