Excise duty for e-cigarettes at the level of the European Union. Most countries are in favor

It is about alternative tobacco and nicotine products existing on the market relatively recently: electronic cigarettes, heated tobacco products and products in the form of sachets. In connection with the leadership in the EU Council, Poland initiated a debate on excise duty on these products in the European Union. In February this year, she discussed in Brussels with representatives of other countries. “In the past, Member States have repeatedly expressed the need to harmonize the rules of taxation of new tobacco and nicotine products and supported the changes of applicable regulations” – emphasized the EU source.

She added that the debate organized in February by the Polish presidency confirmed this. “The vast majority of Member States spoke for the need to harmonize the regulations in this area,” we heard.

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The discussion concerned the excise of alternative tobacco and nicotine products in all EU countries. In some countries, they are taxable, but not all capitals keep up with taxing new products that go to the market every now and then. Lately The act on excise duty was amended by Poland. In February this year, the Sejm adopted an increase in excise duty for one-time e-cigarettes and taking over the tax of new categories of products: reusable electronic cigarettes, heaters, multi-functional devices and parts for them, nicotine sachets and other nicotine products. Poland also declared the readiness to undertake work in the scope of “taxation structure and excise duty rates used for tobacco products and substitution products” – this is what the priorities of the Polish conductivity were written.

However, so that the member states can take up work, it must first come out with a proposal to change regulations European Commissionthe only EU authority with a legislative initiative.

The debate among the Member States is a signal for the European Commission that countries see the need for reforms. “The European Commission does not have to, but it can take it to heart” – emphasized the EU source. On the other hand, the subject of the conversation initiated by Poland at the EU forum was not the issue of equalizing excise duty on traditional cigarettes in the European Union. Reports on this subject have recently appeared in the Polish media. According to Gazeta Wyborcza in the EU, a great game of cigarette tax begins. ” Referring to the EURACTIV portal, the newspaper said that in March “several member states” sent a letter to the EC with an appeal to accelerate work on tobacco regulations.

If the EC in response to this appeal would decide to align the excise duties on traditional cigarettes in accordance with its own proposal from 2022, this could mean a price shock for smokers in countries such as Poland, where cigarettes are still cheaper than in Western Union countries. The minimum excise duty for cigarettes in the EU would then twice: from approx. 1.80 euros (approx. 7.49 PLN) for a package to 3.60 euros (approx. 14.98 PLN). However, the EC abandoned the proposal from 2022 – just like a number of other taxes regarding taxes, which this authority withdraws from the EU Council every year. Changes in taxes (any, not only regarding excise duty) require unanimous consent of all 27 Member States. Therefore, one government's objection is enough for the proposal to get stuck in the EU Council or because of the blockade it is just withdrawn by the EC. This authority also did not decide to place changes in excise duty in the work program for this year.

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Any changes regarding both the equalization of excise duty to traditional cigarettes and the introduction of such a tribute to innovative tobacco and nicotine products may hinder the requirement of unanimity. An easier way to regulate issues related to tobacco at EU level is to change the directive (adopted by a majority of 15 member countries constituting 65 percent of the population of the European Union). For example, in 2022, a change in the Tobacco Directive came into force, which outlawed in the Union the rotation of heated tobacco products, having a characteristic aroma. “Heaters” were therefore razed in EU law in this respect with cigarettes and tobacco to twist them.