Under the current directive, most of the smoking-vaping products cannot be taxed like traditional tobacco products
Sixteen EU countries have asked the European Commission to propose a new law in the coming months on the tobacco taxationto include new products such as electronic cigarettes – vapors – which are not covered by the existing legislation.
The initiative, led by the Netherlands, has the support of Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia and Portugal.
In their letter to the Commission, the finance ministers of the countries report that an update of the EU legislation on the 2011 tobacco tax “because – in the absence of EU regulations on vaping – each country now applies different rules and levels of excise duty, distorting the tax bloc’s single market.”
“Under the current directive, most of these products cannot be taxed like traditional tobacco products. The provisions of the current directive are insufficient or too limited to meet the challenges faced by the administrations of the Member States, given the constantly evolving supply of the tobacco industry“, the joint letter said, according to Reuters.
“Due to shortcomings in EU legislation, Member States have taken appropriate measures at national level. This has led to fragmentation, an uneven playing field and ultimately a distortion of our internal market“, he said.
The update to EU tobacco tax legislation was due to take place at the end of 2022 but has been delayed and governments want the new Commission, which took office on December 1 for the next five years, to tackle it urgently.
The European Commission has so far set regulatory standards for e-cigarettes, including limits on nicotine content and labels explaining they should not be used by non-smokers. Manufacturers must register with the government before selling.
But otherwise the rules differ from country to country. In France, people under 18 cannot buy vape and their use is prohibited in certain public places, including universities and on public transport.
Italy lifted the ban on the use of e-cigarettes in public places in 2013. Use in or near schools is still prohibited. The disposable vape have attracted particular attention from lawmakers in some European Union countries amid environmental and health concerns. France has moved to ban them completely.
Germany’s Bundestag, the upper house of parliament, called on the government to push for a similar EU-wide ban on single-use vaping.
OR tobacco industry Imperial Brands IMB.Lwhich makes the vape brand blu, said the harmonization of EU tax rules would likely have a positive impact for consumers and manufacturers, provided vape taxes remain lower than those on cigarettes.
“We believe that proportional excise duty can play a role in effectively regulating vape“, he said.
Source: Skai
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