Is an Eastern European country about to raise excise tax on vapes?

Today, I saw a piece of news that attracted attention. An Eastern European country wanted to Improvee-cigarettesConsumption tax, that is Eastern Europe Latvia。

Latvia, located to the north of Lithuania, has also recently made Electronic atomization consumption tax decision.

According to Report by Latvia News Network, starting from 2024, Latvia will gradually increase the consumption tax on alternative tobacco products such as e-cigarettes. The amendment received government support on October 9.

(Increase taxes)

Also interesting is, Latvia has increased the consumption tax on e-cigarettes much higher than other products. includes aHNB, cigarettes, alcohol, etc.

According to Latvia regulations, Starting from March 1, 2024, a three-year period of increase in consumption tax will begin, consumption taxes on e-cigarettes, cigarettes, cigars and interchangeable goods will be gradually increased. The consumption tax on the above products in 2025 and 2026 will be adjusted on January 1 each year. Among them, the consumption tax plan for e-cigarettes and their components will increase by an average of 21% per milliliter by 2026smoke oilThe consumption tax will reach 0.35 euros. Germany currently imposes an additional tobacco tax of 0.16 euros per milliliter on e-cigarette oil。If the consumption tax per milliliter of tobacco oil in Latvia reaches 0.35 euros in the future, which is equivalent to a one-time consumption tax of 0.7 euros (equivalent to 5-6 yuan)?

The levy on e-cigarettes includes these categories, such as liquids used in e-cigarette equipment, semi-finished liquid components used in e-cigarette equipment, etc.

Compared with the 21% annual increase in e-cigarettes, this country increases cigarette consumption tax by an average of 5.6% every year, which will increase the price of each pack of cigarettes by about 0.14-0.2 euros. The current consumption tax on local cigarettes per gram of tobacco is approximately 0.14 euros. It is 0.02 euros per gram of tobacco, the excise tax on tobacco and tobacco leaves is 0.09 euros, and heated tobacco (HNB) is approximately 0.22 euros.

This comparison reveals several problems, many European countries may impose consumption taxes on e-cigarette oil in the future, and it may gradually increase them. At the same time, Latvia has increased the consumption tax on e-cigarettes to a relatively high degree every year. Moreover, the consumption tax on heated tobacco in this country is higher than that on traditional cigarettes.

At the same time, it also made it clear that Reduce retail price differences between alternative products through consumption tax.

Why is the tax levied? The Ministry of Finance of Latvia stated that the consumption tax on cigarettes, e-cigarettes and alternative tobacco products is first of all to protect public health and can also ensure the revenue of the national budget, but it does not affect the free trade of these goods in the EU market.

Latvia is a small country in Eastern Europe with a population of only 1.88 million. Belonging to the Indo-European language family, there are also Jewish, Estonia and other ethnic groups. The number of girls is much higher than that of men. They have the characteristics of both the beauty of Russian women and the elegance of Western European women. The country also focuses on environmental protection. There are many lakes and rivers, which are very suitable for leisure living.

(Location) 

With the development of the e-cigarette industry, European countries are also incorporating e-cigarettes into the tax system, which is expected to be an inevitable trend. Inevitably squeeze profits or change market prices!