Italy Set to Reduce E-Liquid Tax on April 1st 2022

Italy will adjust its e-liquid tax for the fourth time in four years, with the new rates set to take effect on April 1st. The Italian Senate passed the changes in late February, which will favor vaping consumers by reducing the tax burden on e-liquids.

Parliament Repeals 2022 Tax Increase

The Italian Parliament has decided to reduce the taxes on e-liquids to the levels set in 2021 by repealing the scheduled increase that took effect in January 2022. As of April 1st, the tax rate on e-liquids containing nicotine will decrease from €0.175 (U.S. equivalent: $0.19) per milliliter to €0.13, while the zero-nicotine e-liquid tax will fall from €0.13/mL to €0.08.

Vaping Industry Faces Constant Uncertainty

The Italian vaping industry has been grappling with constant uncertainty over vape tax rates, as the Parliament changes them seemingly at random in almost every new annual budget. This lack of stability has made it difficult for small businesses to plan for the future and has left consumers struggling to find affordable products that help them avoid smoking.

Italian vapers have experienced a price rollercoaster since 2014, when Parliament introduced a €0.40/mL tax—the highest in the European Union—which nearly doubled the price of e-liquid and drove many vapers to the black market or illegal cross-border sellers. Some even reverted to smoking cigarettes.

High Taxes Burden Consumers

In addition to the e-liquid tax, Italian consumers must pay a 22 percent value-added tax (VAT) on all vaping products. At the current tax rate, a 10 mL bottle of e-liquid (the legal maximum size in all EU countries) that starts at €5.00 ends up costing a vaper over €8.00, with nearly 40 percent of the consumer’s cost going towards taxes.

Tax Reduction Offers Hope for Italian Vapers

The upcoming reduction in e-liquid taxes, effective April 1st, provides a glimmer of hope for the Italian vaping community. By making vaping products more affordable, the government is taking a step towards supporting harm reduction and helping smokers transition to a less harmful alternative.

However, the constant changes in tax rates and the lack of long-term stability in the industry continue to present challenges for both businesses and consumers. The Italian vaping community hopes that the government will adopt a more consistent and supportive approach to vaping in the future.

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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.