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Germany will start taxing electronic cigarettes in the same way as traditional cigarettes on July 1, 2022, and from 2022, the tax will increase year by year.
There will be a tax of 0.02 euros per milligram of nicotine alkaloids, which will increase to 0.04 euros by 2024.
Michael Randall, director of the World Vaping Users Association (WVA), said such a tax would ultimately have the opposite effect of what was expected. The reason is as follows.
As a result, the price of e-cigarette oil will rise significantly. It is expected that the price of e-cigarettes in the retail market will triple, which will promote the development of this type of products in the black market and will be detrimental to product supervision.
In addition, this tax will only moderately increase traditional cigarettes. After the comparison, consumers may give up e-cigarettes, a safer alternative, and turn to traditional cigarettes.
Research funded by the National Institutes of Health shows that raising taxes to curb e-cigarettes is often counterproductive, leading former smokers to return to more harmful cigarettes.
A data study on the impact of e-cigarette taxes on traditional tobacco and e-cigarette sales shows that from 2011 to 2017, in 35,000 retail stores in eight states in the United States, the price of e-cigarettes increased by 10%.
E-cigarette sales will fall by 26%, while traditional cigarette sales will increase by 11%.