Sixteen European Union (EU) countries have called on the European Commission to introduce a new law to harmonise tobacco taxation across the bloc, including emerging products like electronic cigarettes and vapes.
The request, led by the Netherlands and supported by nations such as Germany, France, and Spain, highlights the pressing need to address disparities caused by outdated legislation.
In a letter addressed to the Commission, the finance ministers from the participating countries emphasised the importance of revising the EU’s 2011 Tobacco Taxation Directive. The absence of regulations specific to vaping products has led individual member states to adopt their own taxation frameworks, resulting in a fragmented market.
The joint letter underscored the challenges posed by the rapidly evolving tobacco industry, stating, “Based on the current directive, most of these products cannot be taxed like traditional tobacco products. The provisions of the current directive are insufficient or too narrow to meet the challenges faced by the administrations of Member States given the ever-evolving offerings of the tobacco industry,” said the joint letter.
“Due to shortcomings in the EU legislation, Member States have taken appropriate actions at the national level. This has led to fragmentation, an uneven playing field and, ultimately, to the distortion of our internal market,” it added.
Some countries, such as France, have stringent rules on vaping, including age restrictions and bans in public places, while others, like Italy, have more relaxed regulations.
The ministers also pointed out that the delay in updating the directive, originally due by the end of 2022, has exacerbated these issues. They urged the newly installed Commission, which began its five-year term on December 1, to prioritise this matter.
Although the European Commission has set baseline standards for e-cigarettes, such as nicotine content limits and mandatory registration of manufacturers, enforcement and additional measures vary widely across the bloc. For example, in France, sales to individuals under 18 are prohibited, and vaping is banned in certain public areas, such as universities and public transport. In Italy, while a 2013 policy lifted a ban on vaping in public spaces, its use remains restricted in or near schools.
Disposable vapes, in particular, have drawn scrutiny over their environmental impact and health concerns. France is moving to ban disposable vapes entirely, while Germany’s Federal Council has urged the government to advocate for an EU-wide ban.
The tobacco industry’s continuous innovation and the increasing popularity of vaping products make regulatory alignment critical for the EU. The finance ministers’ letter highlights the urgency of creating a fair and uniform taxation system that aligns with public health goals and ensures an even playing field within the single market.
As discussions progress, the European Commission will need to navigate diverse national policies and stakeholder interests to develop a comprehensive framework that addresses these challenges. The upcoming legislation could mark a significant step in modernising EU tobacco regulations for a rapidly changing industry.
Melissa Enoch
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