Germany, as one of the most popular nations to use vaping, is now a signatory to the Tobacco Duty Modernization Act, which will add tax on electronic liquids. The tax will begin for 0.16 cents per milliliter starting on July 1, 2022. It grows until it is 0.32 euros per milliliter by January 1, 2026.
The law updates taxes on all forms that contain nicotine. It’s not only electronic cigarettes and vapes. IQOS is found in its category in the category of heated tobacco. The hookah and shisha are both to be taxed, too, as taxes on cigars, cigarettes, and other tobacco products are rising all over. Vapes and electronic cigarettes are included in the classification of “cigarette substitutes.”
However, taxing e-liquids by volume implies that e-liquids containing 0mg or e-liquids with no nicotine are taxed in the same way as nicotine products. Although this may seem counterintuitive initially, the rationale behind this is likely because of the way in which nicotine-free e-liquids are sold within the EU, generally following the TPD.
The TPD The TPD, also known as The TPD or the Tobacco Products Directive, limited the strength and size of e-liquids that contained tobacco to a maximum of 10 and 20 mg/ml. E-liquids were offered in the form of nicotine shots and shortfalls. Shortfills are bottles that contain large quantities of VG and PG as well as flavoring that is left partially empty. The space is reserved for Nicotine shots. They are tiny quantities of nicotine with high mg. Nicotine shots are intended to mix with shorter fills and smoking. This method of selling vape implies that the majority of vape sold contains no nicotine.
To give an example of how the tax will impact vapers, take a look at the cost of a 120ml bottle or 100ml bottle that contains two nicotine shots. The price could be around 20 euros (24 dollars). In 2022, the time when the tax starts, the cost of the bottle will rise by 19.2EUR (22.7 dollars) on top of the tax. In 2026, the tax would increase up to 38.4EUR ($45.5), which is a significant price increase, and it’s not the only one.
It is also worth noting that the European Union is also in the process of revising its tobacco laws. This is known in the Tobacco Excise Directive (TED). While not all European nations will be able to agree on an e-cigarette tax, it’s another possibility that could impact German vapers.
Although this Tobacco Duty Modernization Act is an all-encompassing tax increase for nicotine, it is a sign that vaping could be affected, too.