Is your e-liquid nicotine-free? Or are you trying to cut down? It doesn't matter according to the EU - new proposal could make your e-liquid six times more expensive A leaked EU document now reveals plans for massive price increases via excise duties - also for nicotine-free products. And for users of white snus, tax increases await - primarily in Sweden but also in Denmark.
"A completely counterproductive proposal that will wipe out serious trade, worsen public health and send the wrong signals to smokers and vapers alike," the critics say.
Big price changes
The European Commission is nearing a decision on new minimum taxes for nicotine products across the EU. Several media outlets are reporting this after a detailed assessment report with finalised proposals has been leaked. And according to these proposals, major price changes await everyone who uses smokeless nicotine.
E-liquid with nicotine - or without - is affected
Until now, e-liquid has mainly been regulated at national level. But according to the proposal, e-liquids will be subject to a minimum tax: £2 per ml for less than 15 mg/ml nicotine - and £4 per ml for higher strengths.
For those who use disposables or buy pre-mixed e-liquid in small bottles, it might not make much difference. But for users who opt for shortfills/longfills - nicotine-free liquids that are mixed with nicotine shots - it can be dramatically more expensive.
Tax on nicotine-free liquids
The report recommends that even nicotine-free liquids should be taxed as if they contained low levels of nicotine. Today, these products are not taxed as the content is similar to sugar-free juices. However, it will affect DIY users who buy flavoured liquids separately and mix them with nicotine shots.
An excise tax of £2 per ml would almost six times the price of shortfills - the most common form of e-liquid in dedicated vapour shops today.
"Denmark is probably the best example of how high taxes and flavour bans have pushed a well-functioning market directly into the arms of the black market, which is now trying to out-compete legal retailers. The then Minister of Taxation has even stated that they wanted high taxes to NOT move smokers away from cigarettes. Now it seems that the rest of the EU has the same attitude, which is deeply, DEEPLY irresponsible!" says Jeanette Andersen, Communications Manager at the retailer Geyser for VapeTjek.
In favour of nicotine-rich disposable products
The proposal also means that the tax should be at least 20 % of the price for lower nicotine strengths and 40 % for higher ones. This will make it cheaper to use disposable products with small amounts of liquid - but significantly more expensive to buy larger bottles and mix yourself.
The consequence? Refillable and rechargeable systems - which are otherwise better for both the environment and the user - become economically unviable.
"The EU making disposable products the most attractive sends a contradictory signal to consumers, who may not realise that a ban is coming as a result of the Battery Directive. At the same time, it signals to manufacturers and retailers that the EU wants to make other products unsaleable. In reality, it appears as if the EU really wants a de facto ban on legal retailers and products," says Jeanette Andersen
"The EU is dancing to the tune of the tobacco giants"
Karl-Åke Johansson, spokesperson for the association Svenska Vejpare, which works for consumer interests, strongly criticises the proposal.
"It's clear that the EU is dancing to the tune of the southern European tobacco companies," he says. "They never liked the fact that the technology behind e-cigarettes and e-liquid is so open. As consumers, we choose the flavour, strength and manufacturer - and we can even make the liquid ourselves. The tobacco giants can neither compete with nor buy that." he adds Vejpkollen.se magazine.
Shortfills came because of EU law - now they are penalised
The shortfill system came about in response to the EU's own 2018 rules limiting nicotine-containing liquids to 10ml bottles and 20mg/ml nicotine.
"It became natural for vapour shops to split the flavouring liquid and nicotine. Partly to keep the price down, but also so that users could find the nicotine strength that suited their particular equipment," explains Karl-Åke Johansson.
Eco-friendly steamers get hit
According to Johansson, environmentally conscious users - who vape lower nicotine and choose refillable systems - are hit the hardest.
"This DIY problem that the investigator describes has nothing to do with young people. They will continue to smuggle disposable models as if nothing had happened. The difference is that now they have even less competition from the legal trade," he says.
"Such taxes only affect honest steam shops that survive on selling shortfills and technology. Disposable models are just a by-product - not their core. Now the customers are left to the gangs."
How will users react if the proposal goes through?
"Well, we'll probably do what we always do: regret voting in favour of the EU and get nicotine through the back door instead. If you want to curb use among young people, it's hardly wise to create an even stronger incentive for the black market than today," says Karl-Åke Johansson.
White snus rises dramatically in price
The proposal also affects users of white snus. According to the report, nicotine pouches will be subject to a minimum tax of up to 143 euros - approx. 1,100 DKK - per kilo. Today, they are taxed at DKK 800 in Denmark. In Sweden this corresponds to an increase of 650 %.
This will also affect Danes who cross the bridge to buy cheaper nicotine pouches. In addition, it is recommended that the tax should be a minimum of 50 % of the sales price.
44 % fewer users - but millions in tax
VapeTjek (Swedish: Vejpkollen) has previously reported on the impact of a heavy tax on white snus on users and businesses. According to the European Commission's assessment, the tax could reduce use by up to 44 %, while increasing EU tax revenues by almost €290 million when fully implemented.
