According to vdeh, the German e-cigarette trade association, Germany's planned e-cigarette tax is a health policy disaster that will destroy jobs and promote black market sales without generating significant additional income, foreign reports said.
According to the plan, from July 1, 2022, e-cigarette oil will be taxed at 4 euro per 10 ml bottle. On January 1, 2024, the tax will be increased to 8 euro plus VAT, that is 9.52 euro per 10 ml bottle. Based on the average selling price of about 5 euros per bottle, which is three times the retail price, vdeh said.
On April 21, the vdeh project protested against the plan through statements from scientists and consumers supporting its position on the 20 x 35 meter "water shield" next to the German parliament building in Berlin.
Mikhail dobrajc, managing director of vdeh, said the planned high taxes meant that 95% of the less harmful e-cigarettes would soon be more expensive than regular cigarettes. With 11 million smokers still in Germany, e-cigarettes are the biggest health policy opportunity we have and we have to use them. The planned tax would have the opposite effect.
Vdeh said that the tax plan did not take into account the expected 50% market downturn when calculating the tax, which would make Germany's automobile product tax level five times the EU average.
The trade group warned that the law not only shifted consumption back to more harmful cigarettes, but also dedicated the entire tobacco industry to the black market.