The EU's new budget will be financed by taxes on e-liquids - including those without nicotine. This is now being criticised by industry players who believe it harms public health and favours the tobacco industry.
Along with new taxes on electronic waste, cigarettes and large companies, the European Commission wants to raise billions by 2034 through higher taxes on both nicotine-containing and nicotine-free e-liquids and nicotine pouches. But according to Jeanett Bergfriedt Andersen, Communications Manager at Geyser, one of Denmark's largest retailers of e-cigarettes and accessories, has a different - and more worrying - agenda.
"For the first time, the European Commission has openly recognised that it is not interested in smokers switching to less harmful nicotine products - quite the opposite." says Jeanett Bergfriedt Andersen.
Fear of consequences for small players and consumers
The proposal for new tobacco taxes has just been sent out for consultation in both Sweden and Denmark, causing concern among both manufacturers and retailers.
"I really hope consumers stand up and speak out. The EU completely ignores how these taxes will affect both users and the small, independent vapour shops that have never had anything to do with the tobacco industry," says Jeanett Bergfriedt Andersen.
"We've fought to get people off cigarettes - and now we're being treated like we're part of the tobacco industry."
Denmark already has high taxes - but still needs to adjust
Today, both Denmark and Sweden tax nicotine-containing e-liquids according to nicotine strength, with taxes per millilitre. For liquids with up to 12 mg/ml (15 mg/ml in Sweden) nicotine, the tax is around €0.20.
"Denmark already has a higher rate than what the Commission is proposing, but we probably need to raise the ceiling to 15 mg/ml to follow the EU standard," Andersen explains.
For liquids with a concentration higher than 15 mg/ml, Andersen expects an adjustment to 0.36 euro/ml - an increase from the current approximately 2.50 DKK.
Absurd to tax nicotine-free liquids
However, the biggest opposition in the industry is the plans to tax nicotine-free e-liquids.
"This is completely absurd," says Andersen. "Base liquids with propylene glycol, vegetable glycerine and flavours are also sold in health food stores and pharmacies. Should they now also be taxed?"
In Denmark, only liquids that are ready to be steamed directly count as e-liquid. Longfills and shortfillsproducts that require mixing with nicotine base or additional liquid are exempt - and can only be sold in quantities up to 20ml. In Sweden there are no such restrictions.
According to the European Commission, the tax on nicotine-free e-liquids is intended to prevent so-called "home blending" - but it misses the mark, according to Andersen.
"In the vaping community, home blending means something completely different - it's about making your own recipe. Not about cheating with rules."
"The tobacco giants win again"
If the proposal is implemented in its current form, Jeanett Bergfriedt Andersen believes that the consequences will be severe - especially for retailers who focus exclusively on smoke-free alternatives such as e-cigarettes and refillable systems.
"It's not the big players with disposable models and pre-filled pods that are affected. It's the small, independent shops that work with smoking cessation and counselling," she says.
"If we don't get the politicians to listen, the tobacco companies will be the winners - again. And then we can forget about a smoke-free future."
