Tag Archive for: vaping tax
The Bureau of Internal Revenue (BIR) in the Philippines is optimistic that the implementation of vape stamps will help narrow the excise tax gap in 2025. BIR Commissioner Romeo Lumagui highlighted this strategy as a response to changing consumer preferences and challenges in tax collection.
Read moreThe Alabama House Ways and Means General Fund Committee has passed HB529, a bill that introduces a 10-cent per milliliter tax on the retail sale of consumable vapor products in the state. This tax will be applied on top of the existing Alabama sales tax, with the consumer responsible for covering the additional cost.
Read moreBreakdown of layered US tariffs (Sec 301, IEEPA, Reciprocal) leading to 79% tax on vape imports from China; market impact explored.
Read moreThe FDA’s recent leadership overhaul continues to send shockwaves through the agency, leaving a critical leadership vacuum and raising concerns about its ability to fulfill its mission of ensuring public health. On April 01, the FDA’s chief tobacco regulator, Brian King, was placed on administrative leave, marking the latest chapter in a sweeping purge that has affected multiple departments within the agency. The restructuring has particularly targeted the FDA’s tobacco division, which has been a focal point of debate over policies regarding vaping and e-cigarette regulation.
Read moreAs of April 1, 2025, Spain has implemented a new tax on vaping products, aiming to align the taxation of these items with that of traditional tobacco products. This measure, part of a broader tax reform outlined in Law 7/2024, is set to have a significant impact on consumers and the vaping industry as a whole.
Understanding the New Tax Structure
The new tax applies to all vaping liquids, bases, and nicotine kits, regardless of whether they contain nicotine. The tax rates are as follows:
- Vaping liquids without nicotine or with less than 15 mg/ml of nicotine: €0.15 + VAT per ml
- Liquids with more than 15 mg/ml of nicotine: €0.20 + VAT per ml
- VG/PG mix bases without nicotine: €0.15 + VAT per ml
- Nicotine kits:
- 18-20 mg/ml: €0.20 + VAT per ml
- 10 mg/ml: €0.15 + VAT per ml
To put this into perspective, a 10 ml container with a 10 mg/ml nicotine concentration will see a price increase of €1.50, while a product with a 20 mg/ml concentration will have a €2.00 increase.
The Impact on Consumers
The new tax will lead to significant price increases across various vaping products:
- 100 ml nicotine-free shortfill: +€18.15 including VAT
- 50 ml nicotine-free shortfill: +€9.08 including VAT
- 10 ml liquids: An increase between +€1.81 and +€2.42 including VAT
- Nicotine kits: Prices will approximately triple, with an increase of +€2.42 including VAT
- PG/VG mix bases without nicotine (1 liter): If the tax applies to these bases, the current price could increase by 14 times, adding +€181.15 in VAT and taxes
These price hikes will not only affect occasional vapers but also those who rely on vaping as a tool to quit smoking. Many consumers may find themselves exploring alternatives or turning to the unregulated market, which can pose significant health risks.
Adapting to the New Landscape
In light of these changes, consumers will need to be proactive in adapting to the new vaping landscape. Some strategies to consider include:
- Making purchases before the tax takes effect: If you have the means, stocking up on your preferred products before April 1 can help you save money in the short term.
- Opting for aromas and longfills: These formats, which allow you to create your own liquids, are not subject to the new tax. They may become more popular among vapers looking to save money while still enjoying their preferred flavors.
- Choosing 100% PG or 100% VG bases: As these bases are not suitable for vaping on their own, they are not subject to the new tax. Mixing your own liquids using these bases can be a more cost-effective option.
- Avoiding the illegal market: While it may be tempting to turn to unregulated sources for cheaper products, doing so can expose you to significant health risks. Stick to reputable, legal vendors to ensure the safety and quality of your vaping products.
The Future of Vaping in Spain
The introduction of this new tax marks a significant shift in Spain’s vaping industry. Specialized stores will need to adjust their offerings, potentially removing heavily taxed products like shortfills and promoting more affordable options like aromas and longfills.
It remains to be seen how consumers will respond to these changes in the long term. Some may choose to quit vaping altogether, while others may find ways to adapt and continue enjoying their preferred products.
As a consumer, staying informed about these changes and making smart, health-conscious choices will be crucial in navigating this new landscape. By understanding the tax structure, exploring alternatives, and supporting reputable vendors, you can continue to enjoy vaping while minimizing the financial impact of the new tax.
The Philippines has been steadily increasing excise taxes on tobacco products in recent years, with the latest adjustments taking effect on March 22, 2025. These tax hikes are part of the government’s ongoing efforts to discourage smoking and raise revenue for the country’s universal healthcare program.
Read moreThe Government of Saskatchewan, Canada, introduced amendments to The Provincial Sales Tax Act, 2025 on March 24, aiming to remove the provincial sales tax (PST) exemption on vapour products. As of June 1, 2025, a six percent PST will be applied to all vapour products in the province, in addition to the existing vapour products tax, according to a provincial government news release.
Read moreThe Tennessee House Finance, Ways, and Means Committee recently passed House Bill 968, presented by Representative David Hawk, with a 12-1 majority on March 10, 2025. The bill proposes a 10% tax on all open-system vapor products and bans non-FDA-approved products, creating a registry of approved vapes and ensuring that only FDA-deemed acceptable products are sold in stores.
Read moreGovernor Phil Murphy has unveiled a new tax proposal that would significantly increase the cost of cigarettes and vaping products in New Jersey. The tax hikes, part of the state’s budget plan, are expected to generate $51 million in annual revenue.
Key Tax Increases Under the Proposal
- Cigarette Tax Hike: The per-pack tax would rise from $2.70 to $3.00, bringing in an estimated $41 million annually.
- Vape Liquid Tax Increase: The tax on nicotine-containing e-liquids would triple from $0.10 to $0.30 per milliliter.
- E-Liquid Container Tax: The state would also triple the container tax from 10% to 30%, adding $10 million in projected revenue.
Murphy’s administration justifies the tax hikes as a way to boost public health while also increasing state revenue. However, critics argue that the move disproportionately affects lower-income residents and could drive more consumers to cross-border or black-market purchases.
While some lawmakers support the tax increases as a discouragement strategy for nicotine use, opponents warn that excessive taxation may push consumers toward unregulated alternatives.
As New Jersey’s budget discussions continue, the debate over these tobacco and vape tax hikes is expected to intensify.