A Look Back at the Top 10 Events in the Overseas Vaping Market in 2021

In 2021, various major electronic cigarette markets overseas experienced varying degrees of change, especially regarding regulatory policies. Some legislations gradually prohibited, while others gradually legalized. Of course, the question of whether to increase the electronic cigarette consumption tax is the biggest test for countries in regulating electronic cigarettes.

1. Philip Morris International Invests Millions in Establishing an Electronic Cigarette Recycling Center in Budapest, Hungary

In September, Philip Morris International established a $10 million electronic cigarette recycling center in the suburbs of Budapest, Hungary. This center can recycle 150,000 electronic cigarette devices per month and has the capacity for further expansion. The company chose this location due to Hungary's stable economy and favorable investment environment.

2. Germany Officially Issues New Tobacco Tax Legislation, Aligning the Tax Rate for Heated Tobacco Products with Cigarettes, and Appropriately Increasing the Tax Rate for Nicotine-Containing E-Liquids.

In September, the German cabinet officially issued the Tobacco Tax Modernization Act. The German government aims to adjust tobacco tax rates through this act to respond to changes in the tobacco market and consumer behavior, improve public health, and protect minors. The new tobacco tax legislation also differentiates the tax rates between cigarettes and heated tobacco products. The act stipulates that the tax rate for heated tobacco products will be aligned with that of cigarettes. The tax rate for nicotine-containing e-liquids will also be appropriately increased, with a rate of €0.02 per milligram of nicotine from July 2022 to the end of 2023; starting in 2024, the rate will increase to €0.04 per milligram of nicotine.

3. Egypt Lifts Ban on the Sale, Import, and Marketing of Electronic Cigarettes

In September, Egypt lifted the ban on the sale, import, and marketing of electronic cigarettes that had been in place since 2015. This decision will undoubtedly pave the way for the establishment of appropriate regulations to curb the illegal trade of electronic cigarette devices, which has been increasingly severe in Egypt.

4. Australia’s Regulatory Bill on Electronic Cigarettes Officially Takes Effect, Requiring a Doctor’s Prescription for Importing Nicotine Electronic Cigarettes and Liquid Nicotine for E-Cigarettes.

On October 1, Australia’s regulatory bill regarding electronic cigarettes, released in 2020, officially took effect, requiring a doctor’s prescription for importing nicotine electronic cigarettes and liquid nicotine for e-cigarettes. This means that starting in October, it will be illegal to import nicotine-containing electronic cigarettes and refills without a valid doctor’s prescription, and border teams will review packages.

5. The U.S. Food and Drug Administration (FDA) Approves the First E-Cigarette Brand and Product through PMTA

On October 13, the FDA announced the authorization of the first e-cigarette: Vuse Solo, manufactured by R.J. Reynolds Vapor Company, a subsidiary of British American Tobacco. The agency allowed the company’s tobacco-flavored e-liquid pods to be marketed but rejected its various other flavored pods.

6. The National Health Service (NHS) in the UK May Allow E-Cigarette Products to Be Prescribed as Medical Products

On October 29, the UK government website GOV.UK updated the latest news regarding e-cigarettes, stating that for the first time in the world, e-cigarettes may be allowed to be prescribed as medical products by the NHS. This could mean that the UK will become the first country in the world to prescribe e-cigarettes as medical products to address smoking rates.

7. Malaysia to Legalize Nicotine E-Cigarettes and Impose Taxes on Them

On October 29, Malaysia plans to impose taxes on nicotine-containing e-liquids, marking the beginning of regulation rather than prohibition of electronic cigarettes. Media commentary suggests that when the Malaysian government officially formulates its plan to regulate and tax electronic cigarette products, one of the world's largest electronic cigarette markets will finally include legal nicotine.

8. Thailand Explores Legalization of Electronic Cigarette Sales

In October, Thailand's Minister of Digital Economy and Society, Chaiwut Thanakamanusorn, stated that they would explore ways to legalize the sale of electronic cigarettes. He mentioned that at least 67 countries have approved electronic cigarettes as a less harmful smoking alternative, while Thailand still refuses to accept them. He believes that electronic cigarettes could be a safer choice for those trying to quit smoking and added that the country has at least 10 million smokers. He emphasized that it is also important to explore the possibility of turning Thai-grown tobacco into electronic cigarette products for export, benefiting both the Thai Tobacco Management Board and tobacco growers.

9. Israel Plans to Impose the World’s Highest E-Cigarette Tax

In November, Israel plans to impose taxes on electronic cigarette products that will be the highest in the world. This tax plan will impose a 270% wholesale tax on bottled e-liquids, plus 11.39 Israeli new shekels (NIS) per milliliter (with a minimum tax of 21.81 NIS per milliliter). 1 NIS equals 32 cents, meaning the minimum tax on e-liquids will be $6.98 per milliliter. The minimum tax on pre-filled pods or disposable products will be 32.72 NIS each, equivalent to $10.47.

10. The Philippines Passes E-Cigarette Legislation

In December, the Philippine Senate passed Senate Bill (SB) 2239, which regulates the import, manufacture, sale, packaging, distribution, use, and consumption of vaporized nicotine products, with a vote of 19-2-2. The bill's proponent, Senate Majority Leader Ralph Recto, stated that the transition of smokers to these types of vaporized nicotine products is a good public policy.