EU Countries Push for Tobacco Tax Reform
EU Countries Push for Tobacco Tax Reform

EU Countries Push for Tobacco Tax Reform

News summary

Sixteen EU countries, led by the Netherlands, have called on the European Commission to propose new legislation to update the EU's 2011 tobacco taxation directive to include vaping products like e-cigarettes. This initiative aims to address the inconsistencies and fragmented taxation frameworks currently in place across member states, which have resulted from outdated regulations. In a joint letter, finance ministers emphasized that the existing laws do not allow for adequate taxation of these products, leading to an uneven playing field and market distortions. They highlighted the urgent need for a comprehensive overhaul of the directive, which was already overdue for an update by the end of 2022. While the EU has set some regulatory standards for e-cigarettes, the taxation rules vary widely, with some countries imposing strict restrictions while others have more relaxed regulations. The ministers urge the new Commission, which began its term on December 1, to prioritize this matter and create a unified approach to vaping taxation across the bloc.

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