Library | Vapor Products Tax

November 29, 2018 PDF

Tax Notes International article on taxation of heated tobacco in Europe and beyond

November 29, 2018 PDF

Tax Notes International article on taxation of heated tobacco in Europe and beyond

While the European Commission considers whether to include heated tobacco products in a revised Excise Directive, a growing number of European nations have independently created new tax categories for this novel tobacco product. The rates are generally specific, based on tobacco weight and set at rates similar to other smoking tobacco. Source: Tax Notes International.

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October 18, 2018 PDF

ICLE publishes study calling for research on taxation policy of vapor products

October 18, 2018 PDF

ICLE publishes study calling for research on taxation policy of vapor products

The International Center for Law & Economics has published a paper citing the need for identifying and evaluating the trade-offs between harm reduction and revenue generation associated with the taxation of vapor products.

ICLE Vapor products, harm reduction & taxation White Paper 2018-10-3

January 16, 2018 PDF

European Commission report: no tax on vapor products at this time

January 16, 2018 PDF

European Commission report: no tax on vapor products at this time

The European Commission has issued a report to explain its decision not to propose harmonized taxation of novel products such as electronic cigarettes and heat-not-burn tobacco under the tobacco excise Directive 2011/64/EU.

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June 15, 2017 PDF

Study on Council Directive 2011/64/EU

June 15, 2017 PDF

Study on Council Directive 2011/64/EU

The European Commission released an external consultant’s study conducted as part of its review of Council Directive 2011/64/EU on the structure and rates of excise duty applied to manufactured tobacco. More data on new products are required.

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May 31, 2017

US GAO reports on imports of electronic cigarettes and e-liquids

May 31, 2017

US GAO reports on imports of electronic cigarettes and e-liquids

In 2016 the US Customs and Border Protection introduced new tariff codes to track imports of electronic cigarettes and liquids. The Government Accountability Office (GAO) has issued a report that analyzes the data obtained from this tracking.

GAO report on imports of electronic cigarettes and e-liquids

March 21, 2017 PDF

EU survey on e-cigarettes and the Tobacco Excise Directive released

March 21, 2017 PDF

EU survey on e-cigarettes and the Tobacco Excise Directive released

A survey conducted for the European Commission concerning vapor products and the Tobacco Excise Directive shows little public support for taxing electronic cigarettes.

Survey results of EU public consultation on Tobacco Excise Directive

December 16, 2016 PDF

New Nicotine Alliance briefing paper on possible revision of EU Tobacco Excise Directive

December 16, 2016 PDF

New Nicotine Alliance briefing paper on possible revision of EU Tobacco Excise Directive

There is a risk that excise duties, if carelessly applied to smoke-free nicotine products, will create adverse changes in demand in favor of smoked tobacco products.

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September 20, 2016

Understanding the basic economics of tobacco harm reduction

September 20, 2016

Understanding the basic economics of tobacco harm reduction

A new study from the Institute of Economic Affairs suggests that minimizing taxes on low risk tobacco products will improve public health. Substituting low-risk alternatives (e-cigarettes, smokeless tobacco) for smoking would be welfare enhancing for most smokers. The study concludes that the optimal level of tax on low risk products is zero.

Understanding-the-basic-economics-of-tobacco-harm-reduction

September 20, 2016

Nicotine without smoke: Tobacco harm reduction

September 20, 2016

Nicotine without smoke: Tobacco harm reduction

According to the UK Royal College of Physicians a rational approach to nicotine taxation would be to apply tax in proportion to their hazard, in which case the tax on e-cigarettes and other non-tobacco nicotine products should be held stable or even reduced (pp 163-164).

Nicotine-without-smoke-tobacco-harm-reduction

August 30, 2016 PDF

Irish Government releases General Excises Paper

August 30, 2016 PDF

Irish Government releases General Excises Paper

Ireland’s Department of Finance has published a tax strategy paper which includes a proposal for a 50c tax per 10ml of e-liquid that would yield an estimated €8.3 million per annum to the Irish Treasury.

Irish Government releases General Excises Paper

July 05, 2016 PDF

Impact Assessment of extending EU excise directive to new tobacco products

July 05, 2016 PDF

Impact Assessment of extending EU excise directive to new tobacco products

An Inception Impact Assessment prepared in June 2016 by DG TAXUD addresses possible proposals for revising Council Directive 2011/64/EU. One such approach would be to “Adjust the scope of excisable tobacco products by including new products in order to facilitate an appropriate, equal taxation treatment of new products within the internal market.”

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March 20, 2016

Vapor products and tax policy

March 20, 2016

Vapor products and tax policy

The Tax Foundation reviews the increasingly widespread taxation of vapor products in this article. Despite the lower relative risk of vapor products compared to combustible cigarettes, a growing number of governments at the state and local level are levying excise taxes on these new devices.

Vapor products and tax policy

January 20, 2016 PDF

Italy bases e-cigarette tax rate on excise applied to tobacco cigarettes

January 20, 2016 PDF

Italy bases e-cigarette tax rate on excise applied to tobacco cigarettes

Italy introduced its current tax on e-cigarettes in Legislative Decree 188 in December 2014 . The tax rate was set at 50% of the excise on an equivalent amount of cigarettes based on the Weighted Average Price of 1000 cigarettes based on a complex procedure defined by the Director of Customs & Monopolies.

Determining excise rate for e-cigarettes in Italy VPT

August 13, 2015

Differential Taxes for Differential Risks — Toward Reduced Harm from Nicotine-Yielding Products

August 13, 2015

Differential Taxes for Differential Risks — Toward Reduced Harm from Nicotine-Yielding Products

The authors of this study, which appeared in the New England Journal of Medicine, believe that national, state, and local policymakers should implement differential taxes on nicotine yielding products on the basis of degree of risk in order to maximize incentives for tobacco users to switch from the most harmful products to the least harmful…

Differential Taxes for Differential Risks - NEJM

June 19, 2015 PDF

Electronic Cigarettes: Imports, Tariffs and Data Collection

June 19, 2015 PDF

Electronic Cigarettes: Imports, Tariffs and Data Collection

The majority of e-cigarette devices sold in the United States and Europe are imported, primarily from China. Yet governments and industry experts have been challenged to determine the volume of e-cigarette imports due to the absence of the necessary record keeping tools to separate these goods from broad basket categories covering many products.

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January 22, 2015 PDF

Are Evolving Regulations Laying the Groundwork for Taxing E-Cigarettes?

January 22, 2015 PDF

Are Evolving Regulations Laying the Groundwork for Taxing E-Cigarettes?

This article, originally published in Tax Notes International, traces the taxation of electronic cigarettes. The authors look at the traditional economic rationale for applying excise taxes to selected goods and consider whether they are valid in the case of e-cigarettes or destined to be supplanted by more subjective political and social criteria.

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