A 2011 update to the EU Tobacco Tax Directive will tax novel smoking products such as e-cigarettes, e-cigarettes and heated tobacco, relative to combustible cigarettes, as global policymakers remain increasingly vague about the new products' popularity among young people. the opinion of.

Products with high nicotine content will be subject to an excise tax of at least 40%, while low-strength e-cigarettes will be subject to a 20% tariff. Heated tobacco products will also be subject to a 55% tariff, or 91 euros per 1,000 units sold.

The legislative change, part of Brussels' push to reduce smoking rates, will raise the EU's minimum excise tax on cigarettes from 1.80 euros to 3.60 euros per pack of 20 cigarettes, which will raise prices in eastern European countries where cigarettes are sold at low prices. at 3 euros.

Alberto Alemanno, professor of EU law at HEC Business School in Paris, told the FT that tobacco control efforts are being undermined across the EU by the lack of an EU-wide excise framework for e-cigarettes and heated tobacco products .

Excise taxes on cigarettes will also increase substantially in countries where prices are relatively low relative to incomes, such as Austria and Luxembourg. The increase in cigarette taxes is expected to generate an additional €9.3 billion in revenue for EU member states.

The changes are aimed at accelerating the EU's push for a smoke-free generation by 2040. As part of the EU's Fight Against Cancer plan, health officials want to reduce tobacco use among EU citizens from about 25 percent currently to 20 percent by 2025 and below 5 percent by 2040.

The commission this month imposed a ban on flavored heated tobacco products to stem a surge in demand among young consumers. In the United States, regulators at the Food and Drug Administration have moved to ban popular vaping products such as Juul.

Peter van der Mark, general secretary of the European Smoking Tobacco Association, an industry body, warned that a sudden and dramatic increase would create a market for the illicit trade.

Dustin Dahlmann, president of the Independent European Vape Alliance, added that taxing novel tobacco products could lead to less harmful alternatives to smoking being overtaxed in many countries .

In EU countries with lower cigarette prices such as Bulgaria, Slovakia, Poland and Hungary, the increase in the minimum excise tax will have a strong impact on consumers and economic operators, according to a leaked impact assessment report. The review also noted that excise taxes on novel tobacco products that are particularly attractive to young people at risk of addiction would contribute to public health efforts to reduce tobacco use.

The proposal must be agreed by all EU member states before it can be written into law. British American Tobacco, one of the world's largest cigarette makers, stressed it was the start of a lengthy legislative process.

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