Germany Proposes Tax on Nicotine E-Cigarettes
The German government has proposed taxing nicotine-containing e-cigarettes, with the tax set to take effect in summer 2022. The new levy is a response to current market developments. From July 1, 2022, the tax on vaping e-cigarettes will be EUR 0.02 per m
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The German government has proposed a tax on nicotine e-cigarettes, which will take effect in the summer of 2022.
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The new tax is a response to the current market developments. Starting from July 1, 2022, a tax of €0.02 ($0.02) will be levied on every milligram of nicotine in vaporized e-cigarettes. From January 1, 2024, the tax will double by the end of 2026.<\/span><\/div>
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The proposed Tobacco Tax Reform Bill states: "This is for the sake of fair taxation, as nicotine-containing e-cigarettes can be considered an alternative to cigarettes," and the authorities justified this decision based on the "potential risks" of vapor products compared to traditional tobacco products.<\/span><\/div>
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The draft bill states: "They are not harmless consumer products and may lead to diseases."<\/span><\/div>
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Lawmakers expect the new tax to generate €135 million in 2022, reaching €2.9 billion by 2026.<\/span><\/div>
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The German Smoke-Free Future Alliance (BfTG) stated that the plan "makes no sense."<\/span><\/div>
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BfTG Chairman Dustin Dahlmann told ECigIntelligence: "The tax will make traditional cigarettes cheaper than e-cigarettes and significantly increase the price of e-liquid." He warned that this could lead to a thriving black market for e-cigarettes, as seen in Italy and Estonia. BfTG believes that taxation should remain at the EU level.<\/span><\/div>
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Currently, German vapor products are not specifically taxed. However, they are subject to a 19% value-added tax, and a decision is expected by the end of 2021.<\/span><\/div>



