In the second half of 2021, the entire international e-cigarette market has changed to varying degrees, especially regulatory policies. Some countries have banned them by legislation, and some have gradually become legalized. However, the core is still around whether to increase the consumption tax of electronic cigarettes and how much to increase, which has become the biggest test of the supervision of electronic cigarettes in various countries.
Below, let us review what significant events have occurred and think about it:
Philip Morris International spent tens of millions of dollars to set up an e-cigarette recycling center in the Hungarian capital
In August, Philip Morris International established an e-cigarette recycling center worth 3 billion HUF (10.16 million U.S. dollars) on the outskirts of Budapest, the capital of Hungary, this week. The center can recycle 150,000 e-cigarette devices every month, and it can continue to increase its capacity. The company chose this location because of Hungary’s economic stability and good investment environment.
Germany officially promulgated a new tobacco tax bill. The tax rate of heat-not-burn tobacco products is the same as that of cigarettes, and the tax rate of e-cigarette liquid containing nicotine has also been appropriately increased
The German Cabinet officially promulgated the “Tobacco Tax Modernization Act.” The German government aims to adjust tobacco tax rates through the bill to respond to changes in the tobacco market and consumer behavior and improve public health and protect minors. The new tobacco tax bill summarizes the different tax rates between cigarettes and heat-not-burn tobacco products. The bill stipulates that the tax rate for heat-not-burn tobacco products is the same as for cigarettes. The tax rate of e-liquid containing nicotine has also been appropriately increased. Starting from January 2022, the additional tax will be 1.86 euros, rose to 2.01 euros in 2023, 2.15 euros in 2025, and 2.27 euros in 2026. This means that from January 2022, heating tobacco users will pay a tax of 2.74 euros, based on a package worth 6 euros. This is lower than the original proposal made by the Ministry of Finance, which proposed to impose a tax of 3.25 euros per package next year. and
From July 2022 to the end of 2023, the tax rate for e-liquids containing nicotine will be 0.02 euros per milligram of nicotine; starting from 2024, the tax rate will be increased to 0.04 euros per milligram of nicotine.
Egypt abolishes the ban on the sales, import, and marketing of e-cigarettes
In September, Egypt abolished the ban on the sales, import, and marketing of e-cigarettes in 2015. This decision will undoubtedly pave the way for the development of appropriate regulations to curb the illegal trade in e-cigarette devices, which will help eliminate the growing crisis in Egypt due to this illicit trade. And to ensure higher production standards to ensure product quality, health, and safety. As a result, adult smokers can obtain higher quality cigarette substitutes. On the other hand, it also encourages small and medium-sized enterprises, which is conducive to the overall investment environment in Egypt. Businesses can open new stores, create job opportunities, and introduce rechargeable e-cigarette devices. In the end, the Egyptian treasury will also receive tax through this program. Effectively reduce the probability of tax evasion.
Australia’s e-cigarette regulatory bill has come into effect. That is, the import of nicotine e-cigarettes and liquid nicotine used in e-cigarettes requires a doctor’s prescription
On October 1, Australia’s 2020 e-cigarette-related regulatory bill came into effect. That is, the import of nicotine e-cigarettes and liquid nicotine used in e-cigarettes requires a doctor’s prescription. This means that it will be illegal to import nicotine-containing e-cigarettes and refills starting from October without a legal doctor’s prescription, and the border team will review the package.
The U.S. Food and Drug Administration (FDA) approved the first e-cigarette brand and e-cigarette product to pass PMTA
On October 13, the U.S. Food and Drug Administration (FDA) announced the authorization of the first e-cigarette: the Vuse Solo manufactured by R.J. Reynolds Vapor Company, a subsidiary of British American Tobacco. The agency allowed its tobacco-flavored e-liquid cartridges to go on the market but rejected its various other flavored cartridges.
The British National Medical Service System (NHS) may allow e-cigarette products to be prescribed as medical products
On October 29, the British government website GOV. U.K. updated the latest news about e-cigarettes “E-cigarettes could be prescribed on the NHS in world first.” The primary meaning is that e-cigarettes may be allowed to be prescribed as a medical product by the British National Health Service (NHS) for the first time in the world.
This may mean that the U.K. will become the first country in the world to prescribe e-cigarettes as a medical product to reduce smoking rates.
Malaysia will legalize and tax nicotine e-cigarettes
On October 29, Malaysia plans to impose a tax on e-cigarette oil containing nicotine, which marks the beginning of Malaysia’s regulation rather than a ban on e-cigarettes. The media commented that when the Malaysian government formally formulated its plan to regulate and levy e-cigarette products, one of the world’s largest e-cigarette markets will eventually include legal nicotine.
Israel will impose the world’s highest e-cigarette tax
In November, Israel plans to impose a tax on e-cigarette products, which will be the highest in the world. The tax plan will impose a 270% wholesale tax on bottled e-liquid plus 11.39 Israeli New Shekels (NIS) per milliliter (minimum per milliliter is 21.81 NIS). 1 NIS equals 32 cents, which means that the minimum tax for e-liquid is $6.98 per milliliter. The minimum tariff for preloaded cartridges or disposable items is 32.72 NIS per NIS, equivalent to 10.47 US dollars.
The Philippines passes the e-cigarette bill
In December, the Philippine Senate passed the third and final readings of the Senate Bill (S.B.) 2239 Vaporized Nicotine Product Measures with a 19-2-2 vote on Thursday, aiming to regulate the import and export of electronic cigarettes and heated tobacco products (HTP). Manufacturing, sales, packaging, distribution, use, and consumption. The initiator of the bill and the president pro tempore of the Senate, Ralph Rector, said: It is an excellent public policy for smokers to switch to these types of evaporated nicotine products.
Draft of China’s National Standards for Electronic Cigarettes for Solicitation of Comments
On December 2, China’s tobacco regulatory agency publicly solicited opinions on the “Administrative Measures for Electronic Cigarettes (Draft for Comment).” As a result, it shifted the product from a regulatory gray area to national supervision.
Draft regulations of the State Tobacco Administration of China after China’s Cabinet revised its tobacco monopoly to include e-cigarettes. This management method will help the quality and management of e-cigarettes to obtain a higher guarantee. In addition, The production and manufacture of e-cigarettes must be licensed by the tobacco authority to operate.
END
As a substitute for cigarettes, e-cigarettes affect the benefits of tobacco taxation in some aspects. Nevertheless, the progress of the times and the trend of consumer group experience upgrading are irreversible in some respects. Therefore, instead of fighting against sports, it is better to use them. Wouldn’t it be better to accept the convenience and new experience that a new thing brings to people, and to better regulate it through policies and rules, so as to better benefit the people’s health and the surrounding environment, and increase the government’s tax revenue?
We cannot change the past, but we can change the future. The best time to plant a tree was ten years ago, followed by now. So let us embrace the arrival of the new era together!
