Spain's Canary Islands to impose specific tax on vaping products from 2024

The government of Spain's Canary Islands will impose a tax of €0.10 per milliliter on vaping products and e-cigarettes starting in 2024, including it in the regional budget draft for 2024.

According to recent news from the European News Agency, the Canary Islands government will start taxing e-cigarette products and e-cigarettes at a rate of €0.10 per milliliter from 2024, as outlined in the revised Tobacco Products Tax Law.

The Canary Islands will be the first Spanish autonomous community to impose a specific tax on such products, having adopted the financial recommendations issued by the EU and the central government.

The authorities will tax e-liquid for e-cigarettes and any devices containing or not containing nicotine, particularly to hinder youth access and prevent them from developing a habit of using tobacco.

Currently, the financial impact of this measure on the Canary Islands is unclear, although according to the Ministry of Health's report “E-Cigarette Tax Review: European Regulation and Possible Scenarios in Spain,” the national public revenue from e-cigarette taxes could increase between €7 million and €48 million.

Additionally, the bill updates the tax rates for most products, increasing the tax rate for cigars and small cigars from 2% to 4%, and for other tobacco products from 5% to 10%.