The European Commission will propose to increase excises on cigarettes and impose taxes on vapes

According to a draft European Commission (EC) document, the European Union (EU) may introduce a tax on vaping as part of a change in the taxation of the tobacco industry. It is also expected to double excises in EU member states with low taxes on cigarettes. Financial Times (FT).

The minimum EU excise duty on cigarettes will rise from €1.80 to €3.60 per pack of 20, pushing up prices in Eastern Europe where packs can cost less than €3.

The update to the EU directive will also bring the taxation of new smoking products, such as vapes and heated tobacco, in line with cigarette regulations. Stronger vaping products will be subject to an excise duty of at least 40%, while less strong vapes will be subject to a 20% duty. Heated tobacco products will also be subject to a 55 percent duty, or a tax rate of €91 per 1,000 units sold.

The increase in the tax on cigarettes is expected to bring an additional €9.3 billion to EU member states. The EU wants to create a “tobacco-free generation” by 2040.

As part of the EU Cancer Control Plan, health officials want to reduce tobacco use among EU citizens from current levels of around 25% to 20% in 2025 and below 5% by 2040. The Commission this month introduced a ban on heated flavored tobacco products. In the US, the regulator has decided to ban popular vaping products such as Juul.

However, Dustin Dahlmann, president of the Independent European Vape Alliance, notes that imposing taxes on new tobacco products could result in “far less harmful alternatives” to smoking being “taxed too heavily in many countries.”

The proposal must be agreed by all EU member states before it can be enshrined in law. British American Tobacco, one of the world’s largest cigarette manufacturers, said it was “the start of a long legislative process.”

The EC did not respond promptly to the FT’s request for comment.

Maria Fedotova