The federal government wants to revise the tax rates for tobacco products.
With the “Tobacco Modernization Act”, e-cigarette fans are threatened with drastic price increases.
Berlin - With an adjustment, the Federal Ministry of Finance now wants to ensure that, among other things, tobacco heaters and liquids for e-cigarettes are taxed significantly higher than before.
Under the name of the “Tobacco Modernization Act”, the Federal Cabinet accepted a corresponding proposal from the Ministry of Finance this week, as the
world
reports it could be finalized in the Federal Council meeting on March 26th.
Tax increase for cigarette alternatives - what are the arguments for it?
The latest tax change in the tobacco sector was determined according to the Federal Ministry of Finance in 2011, so now it should be time for a new decision.
In addition to a regular increase in the tax rates for cigarettes and fine-cut tobacco, i.e. loose tobacco for rolling cigarettes, between 2022 and 2026 there are plans to adjust the minimum tax for cigars, cigarillos and pipe tobacco - and to increase the tax rates for cigarette alternatives.
As the reason for the first-time special taxation of liquids in e-cigarettes, the tax authorities say: “According to the Federal Institute for Risk Assessment, it is also possible to develop nicotine addiction through the use of nicotine-containing liquids in e-cigarettes.
Liquids containing a lot of nicotine in combination with fruit flavors represent a particular addiction and health hazard, especially for adolescents. "
New tobacco taxes: This is how the increase should work
According to the draft law, the tax on a pack of 20 cigarettes is expected to rise by an average of around 8 cents per year from 2022 to 2026.
For a 40-gram pack of fine cuts, an average of around 13 to 16 cents additional costs per year are incurred over the same period.
So-called "heat-not-burn" products, i.e. steamers with tobacco strips, are to be equated with cigarettes for tax purposes from January 2022 - so it will be more expensive here too.
The new taxation measure would be particularly painful for users of e-cigarettes: Here the draft law plans two taxation steps for the nicotine-containing liquids.
For example, “the tax rate in the years 2022 (from July) and 2023 should initially amount to 0.02 euros per mg of nicotine.
The tax rate will not be increased to 0.04 euros per mg of nicotine until 2024. ”The tax change should bring the state a total of billions in additional income, reports the
dpa
, among others
.
Liquid prices: sharp increases foreseeable
If you convert the first step of the planned liquid taxation to a commercially available ten-milliliter bottle with the maximum permitted nicotine concentration of 20 milligrams per milliliter, you get a tax amount of four euros.
The bottles, which previously cost around 5 euros, would then quickly reach a price of around 9 euros - in the second step, the price would skyrocket to 13 euros.
The industry representatives are therefore not at all in agreement with the plans of the Ministry of Finance: As the
dpa
reports, there is fear of a significant increase in the black market in imported goods as a result of the enormous price increases.
(eu)
