Sixteen EU Countries Advocate for Tobacco Tax Law to Include Vapes

BRUSSELS, Dec 9 (Reuters) - Sixteen European Union countries have urged the European Commission to propose a new law in the coming months aimed at taxing tobacco within the bloc to encompass new products such as electronic cigarettes, commonly known as vapes. These products are not currently covered under existing legislation.

The initiative is spearheaded by the Netherlands and supported by Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia and Portugal.

"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," said a joint letter from finance ministers seen by Reuters.

An update to the EU's 2011 tobacco taxation law is deemed necessary because each country now applies different rules and levels of excise tax due to a lack of EU regulations on vaping. This inconsistency is distorting the single market within the bloc.

"Due to shortcomings in EU legislation, Member States have taken appropriate actions at national level. This has led to fragmentation, an uneven playing field and ultimately distortion of our internal market," stated their letter.

An update was originally scheduled for late 2022 but has been delayed. Governments are urging action from the new Commission that commenced its term on December 1 for five years.

The European Commission has established some regulatory standards for e-cigarettes including nicotine content limits and labeling requirements indicating they should not be used by non-smokers. Manufacturers must register with governments before selling these products.

However, regulations vary across countries. In France individuals under 18 cannot purchase vapes and their usage is prohibited in certain public areas like universities and public transport. Italy lifted a ban on using electronic cigarettes publicly in 2013 but still forbids use near schools.

Disposable vapes are receiving particular scrutiny from lawmakers amid environmental and health concerns. France plans an outright ban while Germany's Federal Council has called for similar measures across Europe.