The EU Commission believes that excise tax should not be applied to electronic cigarettes or heat-not-burn (HNB) products, according to a story by Sarantis Michalopoulos for euractiv.com.
Given the tobacco market’s shift away from traditional tobacco and toward new generation products such as e-cigarettes and HNB devices, and in the light of new developments in the illegal tobacco trade, the EU Council asked the Commission in March 2016 to come up with a proposal on the revision of the Tobacco Excise Directive.
This legislation sets out harmonised rules on the rates of excise duty applied to manufactured tobacco across the EU.
But, due to the availability of only limited data on these products, the Commission decided not to propose a harmonised approach until further information was available.
The Commission said that it would re-examine the situation in the next regular report on tobacco taxation, which is due in 2019.