The German government is proposing a new tax scheme for nicotine-containing vaping products to come into force in summer 2022 as “a response to current market developments”.

The Ministry of Finance plans to introduce a tax of €0.02 per mg of nicotine on e-liquids from 1st July next year. The rate would then be doubled to €0.04 per mg from 1st January 2024 to the end of 2026.

“This is appropriate for reasons of fair taxation since only nicotine-containing substances in e-cigarettes are to be regarded as substitutes for cigarettes,” reads the draft of the proposed Tobacco Tax Modernisation Act (Tabaksteuermodernisierungsgesetz, TabStMoG).

The tax authorities also justify the decision by the “existing risk potential” of vaping products in comparison with traditional tobacco.

“They are not harmless consumer products and can cause serious illnesses,” the draft bill states, in reference to a recent review carried out by the German Cancer Research Center (DKFZ).

Read full article here.

ECigIntelligence – February 17, 2021.

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