Sixteen European Union countries asked the European Commission to propose new legislation to update tobacco taxation in the bloc to include products like e-cigarettes, or vapes, which are currently excluded under existing laws.
In a joint letter to the European Commission, finance ministers from the Netherlands, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia and Portugal highlighted the need for a comprehensive overhaul of the EU’s 2011 tobacco taxation directive. The initiative, spearheaded by the Netherlands, seeks to address inconsistencies across member states that have resulted from outdated regulations.
The letter comes a week after EU health ministers agreed to tighten antismoking measures as part of efforts to minimize the smoking population.
According to Reuters, the ministers expressed concerns over the fragmented approach to taxing e-cigarettes and other novel tobacco products. While some EU member states have introduced their own national measures, this has created an uneven regulatory landscape, distorting competition in the single market.
While the EU has implemented regulatory standards for e-cigarettes—such as limits on nicotine content and mandatory health warnings—taxation policies vary widely. In France, vapes are prohibited for individuals under 18, and their use is banned in certain public spaces like universities and public transport. In Italy, a ban on e-cigarette use in public was lifted in 2013, though restrictions near schools remain. Environmental and health concerns have also drawn attention to disposable vapes. France has announced plans to ban these products outright, and Germany’s Federal Council has called for a similar ban at the EU level.
“Based on the current directive, most of these products cannot be taxed like traditional tobacco products. The provisions of the current directive are insufficient or too narrow to meet the challenges faced by the administrations of Member States given the ever-evolving offerings of the tobacco industry,” the letter wrote.
“Due to shortcomings in the EU legislation, Member States have taken appropriate actions at the national level. This has led to fragmentation, an uneven playing field, and, ultimately, to the distortion of our internal market,” the ministers added.
The push for a new directive follows a delay in updating the EU’s tobacco taxation laws, originally expected by the end of 2022. Governments now hope the new Commission, which began its term on December 1, will prioritize the issue.
