Irish Finance Minister: E-cigarette tax will be introduced in 2025 and the tax rate may gradually increase in the next few years

Irish Finance Minister: E-cigarette tax will be introduced in 2025 and the tax rate may gradually increase in the next few years

Ireland's finance minister has hinted that the introduction of an e-cigarette tax is "likely" to come in the 2025 budget, with the possibility of a gradual increase in tax rates over the coming years. At the same time, taking into account the European Union's directives on e-cigarette products and the impact on smuggling and illegal trade, the specific tax rate is to be discussed. In addition, the sales volume of disposable e-cigarette products in Ireland in the first four months of 2023 has significantly exceeded the sales volume in the whole of 2022.

 

According to a Newstalk report on August 1, Ireland's Finance Minister said that an e-cigarette tax is "likely" to be introduced in the upcoming budget and that the tax rate will increase in the next few years.

 

Last year, then-treasury secretary Michael McGrath said a "domestic tax" would be levied "in the interest of public health", saying at the time that "considerable preparation would be required" in drafting e-cigarette tax legislation. Work".

 

It is thought the government may wait for European Union directives on these products before imposing taxes.

 

New finance minister Jack Chambers said work was progressing on the measure.

 

"We intend to make progress in this year's budget. Revenue and Treasury are working together on how to achieve this."

 

The minister said he hopes to implement a tax on e-cigarettes.

 

"Obviously I will set out the message further on Budget Day, but I want to follow through on Minister McGrath's commitment to next year."

 

"We are working on the details and technical issues of how to achieve this in 2025."

 

Minister Chambers said they were "working through the finer details" of how exactly this would work.

 

Asked whether the measure was certain to be implemented in the 2025 budget, the minister replied: "I can say it is very likely."

 

The minister said any such e-cigarette tax would have to take into account several factors.

 

"Changes are also taking place in Europe, and tax rates must be set to take into account the impact on smuggling or illegal trade in e-cigarettes."

"I would expect that once the tax is introduced in a given budget, it will gradually increase over the next few years."

 

"As to whether it reaches the same tax rate as cigarettes, obviously that's a question for future governments and future ministers to determine."

It is reported that in the first four months of 2023 alone, 26.3 million disposable e-cigarette products were sold in Ireland, a significant increase from the 5.6 million e-cigarettes sold in the whole of 2022.