The ECOFIN council, representing EU finance ministers, has placed the review of the Tobacco Excise Duty Directive on its agenda, which would introduce a mandatory minimum tax on e-cigarettes and nicotine pouches.
The Council of the European Union’s finance ministers (ECOFIN) discussed the comprehensive reform of the EU excise duty directive on tobacco products at its meeting on November 9. The draft aims to introduce mandatory EU minimum taxes on electronic cigarettes, heated tobacco products, and nicotine pouches in addition to traditional tobacco products, eliminating tax discrepancies between member states.
The planned harmonization would primarily disadvantage countries where e-liquids and devices currently face lower tax burdens. According to reports, consumers in Cyprus, Greece, Hungary, and Bulgaria, in particular, could face significant price increases if minimum tax rates are raised above current levels.
While supporters of the regulation expect the decision to clarify internal market competition and curb cross-border tax evasion, harm reduction organizations and industry professionals have expressed serious concerns. They argue that if the price of alternative devices approaches that of traditional cigarettes, smokers will lose the financial incentive to switch to less harmful products.
In brief
- ECOFIN has put the introduction of a minimum excise tax on e-cigarettes and nicotine pouches on the agenda.
- The planned EU tax harmonization could lead to drastic price increases, particularly in Cyprus, Greece, Hungary, and Bulgaria.
- The European Commission’s legislative proposal is expected to go before Parliament following consultations with member states.
- Advocacy groups and industry players fear for smoking cessation due to the loss of price advantages.
Source: Vapoteurs (vapoteurs.net)
This summary was prepared by artificial intelligence based on the original article.