Germany: Bill to Raise E-cigarette and Tobacco Taxes Approved

The German government proposed a new tax on tobacco and nicotine alternative products in April last year. The draft measure was first published by Germany’s Ministry of Finance in February. The amendment will take effect on July 1, 2022, marking the first update to tobacco tax in a decade.

Unfortunately, the measure approved last week will result in safer alternatives being taxed in much the same way as conventional tobacco products. From 2022 to 2023, nicotine-containing products will be taxed at €0.02 per milligram of nicotine alkaloid, rising to €0.04 per milligram in 2024. After that, both product categories will see an additional 15 cents added per pack in 2025 and 2026.

The amendment means that a 10 ml bottle of e-liquid, which currently sells for around €5, will cost an extra €1.60 in 2022 and an extra €3.20 by 2026. The e-cigarette trade association (VdeH) warned that raising the price of safer alternatives could push many vape users back to smoking.

E-cigarette consumers voice concerns over the tax

Last month, the World Vapers’ Alliance (WVA) organized a Covid-friendly demonstration, giving German and European vape users an opportunity to express their concerns and opinions. “These laws pose a major threat to the more than 2 million vape users in Germany who have already quit smoking,” the WVA said in a press release.

“Vaping has already saved millions of lives. However, policymakers and tobacco control advocates refuse to see reality and prefer to put their ideology ahead of saving lives. These proposed new laws will be a major setback for vape users and for smokers who want to quit. That is why our members felt compelled to take action and bring the Vape Army to the streets of Berlin in this Covid-friendly demonstration,” the organization added.