Cyprus introduces taxes on e-cigarettes and heated tobacco

Under urgent procedures Cyprus’ unicameral House of Representatives approved a bill introducing taxes on vapor products. Despite opposition from some legislators who opposed additional taxes, especially on products that had the potential to help people quit smoking, the bill was quickly approved by 26 MPs, roughly 60% of those members voting.

The bill creates a new tax category for heated tobacco products which are defined as “products containing a mixture of tobacco which produces aerosol through the heating of the mixture and not combustion.” Thus, Cyprus follows nearly a dozen other European countries, including Italy and Greece that have created new tax categories for these novel tobacco products which fall outside the scope of European Council Directive 2011/64/EU for excise duty applied to manufactured tobacco.

A specific excise tax will be applied to the net weight of the tobacco mixture at the rate of 150 euros per kilogram.

The tax legislation approved by Parliament also creates a new category for “liquid for use in electronic cigarettes.” Both nicotine containing liquid and nicotine free liquid are subject to the tax which is levied at the rate of EUR 0.12 per milliliter.

Shortly following Parliamentary approval of the bill on 22 September 2017 the amendments were published in the Official Gazette whereupon they entered into Law.