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The German government has proposed a new tax for nicotine-containing vapor products, which would be effective in summer 2022.

The new tax is “a response to current market developments.” It would include a tax of €0.02 ($0.02) per mg of nicotine for e-liquids, effective July 1, 2022. Beginning Jan. 1, 2024, the tax would double by the end of 2026.

“This is appropriate for reasons of fair taxation since only nicotine-containing substances in e-cigarettes are to be regarded as substitutes for cigarettes,” the draft of the proposed Tobacco Tax Modernization Act states. Authorities are also justifying the decision based on the “existing risk potential” of vapor products compared to traditional tobacco products.

“They are not harmless consumer products and can cause serious illnesses,” the draft bill states.

Lawmakers expect the new tax to bring in €135 million in 2022 and up to €2.9 billion by 2026.

The German Alliance for Tobacco-free Pleasure (BfTG) says the plan “makes no sense.”

“The tax would make smoking cheaper than vaping and make e-liquids many times more expensive,” BfTG chairman Dustin Dahlmann told ECigIntelligence, warning that it could lead to a flourishing black market and a collapsing legal industry, such as in Italy and Estonia. The BfTG believes taxation should be left at the EU level.

Currently, vapor products are not specially taxed. They are subject to the 19 percent value-added tax, however.

A decision is expected by the end of 2021.

The post Germany: New Vapor Tax Proposed appeared first on Vapor Voice.

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