Vaping Tax Delayed Again: How Far Is the Netherlands From a Smoke-Free Future?

As a major port in Europe and one of the top ten countries for electronic cigarette exports from China, the vaping tax policy in the Netherlands has attracted significant attention. Can strict control over cigarettes and taxation on e-cigarettes truly lead the Netherlands towards a "smoke-free path"?

Recently, according to Telegraaf, the Dutch government announced that there are no plans to introduce taxes on e-cigarettes or e-liquid, leaving this issue to the new government after the elections in November. The Netherlands is awaiting EU approval to begin taxing e-cigarettes. As a major port in Europe and one of the top ten countries for electronic cigarette exports from China, the vaping tax issue in the Netherlands is under close scrutiny.

According to data from Chinese customs, in August, China exported a total of $39.85 million worth of e-cigarettes to the Netherlands, a month-on-month increase of 32.76% and a year-on-year increase of 34.58%; the export volume was 976,125 kilograms, a month-on-month increase of 30.08% and a year-on-year increase of 162.12%, maintaining its position among the top ten exporting countries from China.

According to information from the Ministry of Commerce of China, in principle, imported goods can be exempt from customs duties, VAT, and excise tax during their temporary storage in Dutch customs bonded warehouses; if imported goods are transported under the supervision of Dutch customs, customs duties and VAT can be deferred until they reach their final destination, which can save cash flow for importers. The Netherlands is one of the transit points for Chinese e-cigarette exports to Europe.

Additionally, according to the EU's official website, currently, e-cigarettes and related products exported from China to the Netherlands are subject to tariffs ranging from 3.7% to 6.5%.

The Netherlands has very strict regulations on traditional cigarettes, and the government is gradually tightening smokers' freedom to buy and smoke: since 2020, the Netherlands has prohibited supermarkets, convenience stores, and other retail locations from displaying tobacco products, and plans to ban the sale of tobacco products in supermarkets starting in 2024. By 2030, tobacco products will be removed from small supermarkets at gas stations, and by 2032, smokers will only be able to purchase cigarettes from specialized tobacco shops. The government hopes that by 2040, the new generation in the Netherlands will become a truly "smoke-free generation".

Restrictions on e-cigarettes in the Netherlands are also increasing: in addition to banning online purchases of e-cigarettes starting this year, supermarkets and dining establishments will also be prohibited from selling e-cigarettes beginning in 2024. To reduce the appeal of e-cigarettes to young people, the Netherlands will no longer allow new flavors of e-cigarettes to be introduced to the market, and even sweetening in flavors will be prohibited.

In the ninth edition of the WHO Global Tobacco Epidemic Report, countries were rated on their progress in tobacco control, and it was noted that after Brazil and Turkey, Mauritius and the Netherlands have also reached best practice levels in implementing all MPOWER tobacco control measures. Taxing e-cigarettes is seen by officials in the Dutch Ministry of Health as an important measure to protect the next generation and maintain public health interests.

Industry insiders have indicated that the strict restrictions on cigarettes in the Netherlands have led some smokers to turn to alternatives—e-cigarettes. If heavy taxes are imposed on e-cigarettes in the future, and the demand for nicotine products among the Dutch population does not disappear, this will inevitably lead to a flourishing black market, potentially undermining the Netherlands' "smoke-free generation" plan.