Is your e-liquid nicotine-free? Or are you trying to cut down on nicotine? It doesn't matter according to the EU - a new proposal could make your e-juice six times more expensive. A leaked investigation now reveals plans for sharp price increases via excise duties - even for nicotine-free products. And for nicotine pouches, a tax increase of almost 600 percent is expected, compared to todays swedish taxes.
"A completely counterproductive proposal, which will wipe out legitimate trade, worsen public health and send completely the wrong signals to both smokers and vejpers" according to the critics.
The European Commission is nearing a decision on new minimum taxes for nicotine products in the EU. several media outlets report sedan a detailed investigation with finalised proposals leaked from the bureaucratic apparatus. And according to the proposals, it looks like big price changes are in store for anyone using smokeless nicotine products.
E-liquid with nicotine
E-liquid, so far taxed according to national rules in most countries, faces a minimum taxation similar to that already in place in Sweden, Denmark and Finland. Two crowns per millilitre for anything below 15 mg/ml and 4 crowns per millilitre for all strengths above that.
It will therefore not be a major shock for those who use disposable models or buy pre-mixed e-liquid in small packs. For those who choose shortfills, i.e. nicotine-free e-liquid, and mix it themselves with a so-called nicotine shot, it looks much worse.
Tax on nicotine-free products
According to the report, nicotine-free liquids should also be taxed as if they contained the lower concentration of nicotine. These are not taxed today, as the ingredients correspond to sugar-free juices. However, the rapporteur wants to tackle what he calls the "do-it-yourself" practice, whereby a flavoured nicotine-free liquid is bought separately and mixed with a small amount of nicotine liquid. An excise duty of SEK 2 per millilitre would mean a near six-fold increase in the price of shortfills, the most common type of e-liquid sold by dedicated vejp shops today.
"The rapporteur proposes to impose a nicotine tax on nicotine-free products. This is completely absurd. Such regulation would mean that a standard bottle of 60 ml nicotine-free e-juice that today costs ~ 100 SEK on the market would be forced up to at least 600 SEK to the end customer" says the e-juice manufacturer Niklas Linder, who runs the company Swedish Mixology in Motala.
"Completely counterproductive"
Mr Linder sees the leaked proposals as directly counterproductive to improving the health of EU citizens.
"Excise duties should be proportionate to risk and taxing nicotine-free products in the same way as nicotine products is counterproductive for public health, to say the least, and sends the wrong signals."
Favours nicotine-rich disposable models
The investigator also wants to force down the sales margins of e-liquid and vaping products by introducing legislation that sets the tax at a minimum of 20 and 40 per cent of the price of the e-liquid, the lower for nicotine strengths below 15 mg/ml and the higher for all concentrations above 15 mg.
In practice, this means that products with a small amount of e-liquid, such as disposable variants, will only be slightly more expensive, while buying e-liquid and nicotine separately will be much more expensive. This means that a transition to refillable and rechargeable systems will no longer be an economically viable solution for those who want to reduce both environmental impact and nicotine concentration. Niklas Linder also sees how the black market will eventually take over completely.
"Further artificially forcing up the price of the products will completely break up the legal market. For good. In the end, disposables will be the only products favoured in the legal market, and there would be absolutely no economic incentive to opt for less nicotine or nicotine-free because the cost will be the same." says Niklas Linder to Vejpkollen.
"Dancing to the tune of industry"
Karl-Åke Johansson is the spokesperson for the Swedish Vapers, an association which represents consumer interests in the area of smoke-free nicotine. He believes that the proposed legislation is a sign of the EU's inability to understand the "problems" they paint around vaping.
"It's clear that the EU is dancing to the tune of the southern European tobacco companies here," says Mr Johansson. "They have never liked the fact that the technology of e-cigarettes and e-liquid is as open as it is. We as consumers can choose the e-liquid of our choice, even manufacture it ourselves if we want. This is a concept that tobacco companies cannot accept, let alone buy or compete with." says Karl-Åke Johansson, who has been running vejpat for almost 15 years.
Responding to EU legislation
The main reason for the shortfill system, where customers buy flavoured nicotine-free e-liquid and mix it with nicotine at will, is as a direct consequence of a specific EU legislation that came into force in 2018. Since then, nicotine liquids can only be sold in bottles of 10 millilitres and a maximum concentration of 20 mg per millilitre.
"It was a natural reaction to split the flavouring and nicotine liquid in the vejp shops. Mainly to keep the price down, but also so that customers could get the nicotine strength that suited the vejp chosen by the user. Some e-cigs work best with lower nicotine strengths and compensate for this with higher power - and vice versa" says Karl Åke Johansson.
Conscious vejpers are hit hardest
According to Mr Johansson, it is mainly e-cigarette users who are environmentally conscious who are affected by taxes on nicotine-free liquid. Those who choose rechargeable systems over disposable models and refill with e-liquid with lower nicotine levels.
"The so-called 'do-it-yourself' problem has nothing to do with young people. They will continue to smuggle in their one-off models as if nothing has happened. It will probably get easier too, as any chance of competing with the criminal trade will disappear. Taxes like this only hurt vapeshops who make a living selling shortfills and technical equipment. For them, disposable models are a by-product of the market, but not essential. It's a free-for-all for gangs to take over their customers." says Karl-Åke Johansson
What do you think will be the reaction of vejpare if the proposal goes through?
"Well, we'll just carry on doing what we've always done. We regret ever voting in favour of membership and buy the nicotine through smuggling instead. And if they want to crack down on youth smoking, it's hardly smart to create another incentive for an even bigger black market than the one we have today." says Karl-Åke Johansson.
White snus up dramatically
White snus users also face huge price increases. According to the report, nicotine pouches should be subject to a gradual minimum tax of up to EUR 143, or SEK 1,560, per kilo. As Vejpkollen previously reported, these are an increase of 650 per cent. Plus VAT. In addition, the investigator wants the tax to be at least 50 per cent of the price. This means that the price of a can of white snus will go up by around SEK 25, and retailers' margins will be significantly reduced.
Vejpkollen has repeatedly reported on how user organisations and businesses would be affected by a substantial increase in the tax on white snus. According to the European Commission's investigators, the effect of the tax should reduce current use by around 44 per cent, but at the same time increase tax revenues within the Union by almost €290 million, when fully implemented.
Ok good just o start smoking again only possibility o afford apparently