A planned new tax that would make life a little more sour for 1TP8 smokers has now been scuppered in Ireland. Authorities fear it would reduce the number of smokers who quit.
It was a planned item in the Irish budget that has now been rethought. The Department of Finance had planned heavier taxation on e-cigarettes and e-juice on the grounds of discouraging young people from taking up the habit. But the country's health ministry instead recommended that e-cigarettes be taxed differently from traditional nicotine products based on the fewer health risks. The authority also suggested that any new tax on e-cigarettes should be earmarked for use in tobacco control and to further reduce smoking in Ireland.
Balanced legislation
Instead, in an advance budget, the Treasury and the country's Finance Minister Michael McGrath say a balance must be maintained to discourage young people from taking up vejpa - while supporting smokers who want to quit. Exactly what that balance will look like is still unclear, but so far it won't be through tax pressure.
Waiting for EU directive
The issue is also related to the fact that no approach has yet been agreed at EU level for vejp products.
"It is a complex tax to implement without an EU framework, so it will take some time to design and implement this," writes the Irish Department of Finance in its advance budget.
Illegal trade
It adds that any increase in taxes on cigarettes and other tobacco products would be unlikely to generate any additional revenue, warning that smokers would instead switch to alternatives, both legal and illegal. The use of illegal products or packs from other EU countries is at an all-time high in Ireland, costing the state around €415 million a year according to the Department of Finance.
