Portuguese Approves Transposition of European Smoking Directive

Portugal smoking directive transposition tax

The Portuguese Parliament’s working group on smoking has approved the transposition of the European directive on smoking into Portuguese law, aligning the country with European Union regulations. Portugal faced the urgency to adopt the directive to avoid breaching EU requirements.

Parliament Focuses on Electronic Cigarette Regulations

The parliamentary group voted on the new tobacco law, specifically focusing on equalizing the regulations for electronic cigarettes with those of traditional tobacco products. They removed the controversial amendments to the current smoking laws, such as banning the sale and consumption of tobacco near schools, petrol stations, or partially covered terraces, from the government’s bill.

Maria Antónia Almeida Santos, an MP in the health committee voting group, explained that the vote solely focused on the transposition of the EU directive, as it was the most pressing matter due to Portugal’s missed deadlines. The group reached an agreement before the dissolution of parliament, ensuring compliance with the European directive.

Future Discussions to Address Health Promotion and Tobacco Sales

Santos stated that other issues related to health promotion and the sale of tobacco products will be addressed at a later time. The approved legislation will now proceed to a final vote in parliament this week.

The government’s bill initially faced opposition from various political parties, with only the majority of the Socialist Party (PS) bench voting in favor, despite its measures to equate traditional tobacco with heated tobacco, tighten the ban on sales in vending machines, and prohibit smoking outdoors near schools, colleges, and hospitals.

Government Proposes Tobacco Tax Increase in 2024 State Budget

The Portuguese government’s proposal for the 2024 State Budget includes an increase in taxes on tobacco products, expecting a revenue of 176.6 million euros. The new budget significantly expands taxation on nicotine-free electronic cigarettes.

The new rules will determine the tax burden based on the amount of nicotine in each product, rather than setting it according to the price of tobacco. The government also aims to discourage the use of cheaper products, such as cigarillos or rolling tobacco, which appeal more to younger people.

The exponential growth in the consumption of nicotine-free electronic cigarettes in Portugal drove the extension of taxation to these products. The government sees this trend as a gateway for new consumers to adopt smoking habits and a risk to public health due to the lack of control over these products.

The new tax rates could increase the price of a pack of cigarettes by 30 to 40 cents in 2024, if the weight of the increased tax burden is passed on to the consumer. Cigarillos, which currently have lower taxes due to their cheaper prices (around 2.50/3 euros), could see their prices double.

The tax rate for electronic cigarettes with flavored liquids is now 12.5%, increasing to 25% if the liquids contain nicotine. ‘Vaping’ cigarettes, which produce vapor from liquid heated by a battery, now have a tax rate of 50%. Rolling tobacco will be taxed at 75% of the rate applied to normal cigarettes.

As Portugal navigates the transposition of the European smoking directive and the implementation of new tax rates, the country takes steps towards aligning with EU regulations and addressing the growing concerns surrounding electronic cigarettes and alternative tobacco products.

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Transposition of European smoking directive into Portuguese legislation approved by Parliament
Tobacco tax increase

Matthew Ma
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