Tobacco taxes are also a big way to obtain revenue within the EU, with the sin tax attracting around 70 billion euros in 2015. According to this document, we estimate it’s now closer to 80 billion. In contrast to the united states, tobacco tax revenues have remained relatively steady despite declining numbers of smokers. But that’s as a result of huge tax increases as opposed to steady sales. In 2008 Europe brought in 101.42 Euros per 1000 cigarettes sold – by 2015 it was 152.44. (Source: World Bank.)
It’s challenging to get accurate figures of the amount of Electronics Cigarette Review for the of Europe, but Reason.com estimates that by 2016 6 million vapers had used electronic cigarettes to avoid smoking, while another 9 million had used vaping to reduce back. More recently, Japan Tobacco International estimated that there were approximately 40 million vapers on earth, with the possible ways to grow to around 110 million by 2025. With Europe having around 30% from the total, that would mean around 12 million vapers currently.
That’s still small when compared to the quantity of smokers in the EU. The population in the EU is about 512 million, and Europe estimates that around 26% of the population still smoke. That’s a tremendous 133 million people, who on average, according to the EU, will experience an average loss of lifetime of 14 years.
Given that vapers are equal to around 9% from the total quantity of smokers, we might roughly estimate the reduction in tobacco revenue to be around 7.2 billion euros, with disclaimers as before (the lack of ability to account for dual vapers, for those who have quit both smoking and vaping and the truth that there are other vapers in countries rich in taxes on cigarettes.)
A short mention here of healthcare. Medical care is usually pretty good within the EU, so needless to say governments to have to fork out for the cost of smoking diseases. But these are generally cheaper to deal with than old age diseases (lung cancer is actually a much quicker killer than dementia). Smoking diseases also strike many smokers around about pensionable age, saving governments many billions in pension payments.
Obviously, we can’t determine these concerns influence the EU. But we can take a look at just what the EU did and said. As long ago as 2013, MEPs were raising concerns about e cigarettes. Here’s what one MEP asked: “The usage of traditional cigarettes provides the Member States with sizeable revenues, due to the substantial taxes that these are subject… can the Council state what action it intends to use to address the variations in tax revenue materialising in State coffers after the proliferation of e cigarettes, which currently seem to be free from any form of duty?”
The EU commission proceeded to attempt to medicalise e-cigarettes (a highly effective ban, as at the time there was no electronic cigarettes with medical authorisation). Due to some extent to vigorous campaigning by vapers, this lead to the messy compromise this is the Cigarettes And Tobacco Products Directive. Vaping has become restricted, but remains legal.
The EU also has held consultations on implementing vape specific taxes. I attended one of many consultations inside london, and also the EU representative actually posited tax as being a positive factor for your vaping industry – on the basis that the standard EU vape tax could be a lot a lot better than draconian taxes imposed by individual countries. An alternative stance is recorded in EU documents, where they seem to estimate that by harmonising duties on e-cigs, tobacco tax losses may be confined to 2.5% of total tax revenue. (Source: EU Commission Report).
So far these initial attempts have already been thwarted. But that could not really function as the case, and lots of in the industry think it’s only dependent on time before a vape tax is implemented. It doesn’t help that inside the EU there mwrnff 24 organisations pushing for tighter vape regulations.
Wonder where their funding is originating to fund lobbying the EU? Based on International Vaping, in 2016 over 500 million euros from it originated from the EU. So essentially, the EU is paying anti-vape organisations to lobby itself for tighter rules on vaping.