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Germany approves tobacco tax increase, including electronic cigarette and heat not nurn

2021/06/30|Knowledge

According to the US tobacco communication network, the Bundestag recently approved a bill to increase the cost of smoking in Germany from 2022. It is reported that by the end of 2021, Germany's tax revenue per pack of cigarettes (20 pack, the same below) will increase by an average of 0.10 euro. In 2022, the tax revenue per pack of cigarettes will increase by another 0.10 euro. In 2025 and 2026, the tax revenue per pack of cigarettes will increase by another 0.15 euro.

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However, the biggest tax increases were e-cigarettes and heat not nurn tobacco products, which used to be subject to small taxes. At present, in Germany, the price of a 10 ml bottle of e-cigarette liquid is about 5 euro. In 2022, an additional tax of 1.60 euro will be added to the price, and the tax will be increased to 3.20 euro by 2026. In addition, Germany will impose additional tax on heated tobacco products, which will be the same as cigarettes in the future.

Representatives of the steam tobacco industry attacked the tax increase, arguing that steam tobacco products contain far less harmful substances than cigarettes and therefore should be subject to lower taxes. The Alliance for tobacco free enjoyment also thinks the tax increase is unreasonable and will file a lawsuit with the federal constitutional court.

The German Electronic Cigarette Trade Association (vdeh) warned that the move would not only encourage e-cigarette users to smoke cigarettes again, but also hit many small and medium-sized enterprises in the tobacco industry. Mr. Michal dobrajc, general manager of the association, said that if the government wants to reduce the smoking rate, it must support the industry that has made a significant contribution to reducing the smoking rate, rather than destroy it. On the contrary, Germany should learn from the experience of other countries, which are forced to reduce the e-cigarette tax due to the re smoking of e-cigarette users and the failure to realize the expected tax revenue.

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