German vapers will pay more for e-liquid beginning next year after legislators approved a tax that will apply to both nicotine-containing and nicotine-free e-juice.
The Tobacco Tax Modernization Act passed the Bundestag (the lower house of parliament) June 11, and was approved by the Bundesrat (the upper house, or “federal council”) on June 25.
The government will collect €0.16 ($0.19 U.S.) per milliliter beginning July 1, 2022. The tax will then increase in steps until 2026, when it tops out at €0.32/mL. For a 10 mL bottle of e-liquid (the legal maximum size under current TPD rules) that costs €5.00, that’s a price increase of about 30 percent in 2022, rising to 60 percent four years later.
Because the tax also covers zero-nicotine products, vape retailers will not be able to avoid the tax by selling separate nicotine-free shortfills and nicotine shots. The tax is expected to drive many vape shops out of business, and increase online sales from retailers outside the country and German black market sales.
Jim McDonald – Vaping360 – 2021-07-01.
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