Background: Operating under urgent procedures in September 2017, Cyprus’ unicameral House of Representatives approved amendments to the excise law dealing with tobacco products. The bill, which was approved by 60% of the members voting, introduced taxes on vapor products.
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.
Shortly following Parliamentary approval of the bill on 22 September 2017 the amendments were published in the Official Gazette whereupon they entered into Law.