European Commission initiates public consultation on taxation of novel products

Less than six months have passed since the European Commission announced that it would defer any proposal for taxing e-cigarettes and other vapor products. Just days ago, however, the Commission initiated a public consultation on excise duties applied to manufactured tobacco and possible taxation of novel products.

From 23 May to 3 September 2018, DG Taxation and Customs Union will seek input from economic operators, business organizations, individual citizens, NGOs and other public and privates parties. Specifically, the Commission will solicit the opinions of interested stakeholders on taxation of e-cigarettes and heat-not-burn tobacco products and collect their views on a possible revision of Council Directive 2011/64/EU. The Directive lays out the basic principles and requirements for the structures and rates of excise taxes on manufactured tobacco products sold in the European Union.

The Commission promises to consult national tax authorities and experts separately.