Tobacco Industry Pushes Ireland for Vape Tax & Regulation

The tobacco industry is actively pushing the Irish government to increase regulation and implement an excise tax on its “new golden goose”: smoking-alternative products like vapes. British American Tobacco (BAT), a major player in the global vape market with its Vuse brand, is warning that Ireland’s illicit vape trade will thrive unless a planned excise tax is rolled out with strong enforcement measures.

BAT Ireland’s country manager, David Melinn, stated, “If implemented properly, the tax can help deliver on public policy goals, but without strong enforcement, there’s a real risk it could unintentionally further fuel criminal trade.” The company also criticized the Health Service Executive’s plan for 40 annual inspections along the vaping supply chain as “not sufficient” to tackle the scale of the illicit problem.

This push for regulation comes as a KPMG report, conducted on behalf of Hale Vaping, estimates that the illicit vape trade accounts for up to 40% of the Republic’s €550 million vape market. The report recommends a tax stamp regime, which, while expected to increase prices and decrease legal demand, would help minimize the illicit trade that represents lost revenue for companies like BAT, who are looking to “actively migrate” customers to smokeless products. With a potential vape flavor ban also on the horizon, the industry is warning that without robust enforcement, “Ireland risks becoming an even greater target for criminal smugglers.”

• News source: Tobacco lobby keen for Government to regulate new golden goose

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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