Tobacco tax since July 2022 and its follow-up costs – an outlook
This has been discussed for a long time and officially announced on July 1, 2022: the start of taxation on nicotine and non-nicotine liquids for e-cigarettes. A gradual introduction is planned to ease the transition for vape suppliers, retailers and consumers. In this article, you’ll find out what you should do now and how costs are headed!
Fact check: How has the tobacco tax been carried out since July?
- Since July 1st, 2022: Introduction of the provisional tax on all vape liquids of 16 cents/milliliter.
- From this date, fresh liquid may only be produced and sold with a tax stamp.
- February 13, 2023: Up to this date, old stock (stock items) can be sold tax-free.
- February 14, 2023: From now on, the tobacco tax applies to all liquids
- By January 1st, 2026: Gradual adjustment to 32 cents/milliliter of liquid
What this means for you as a consumer
Traders and producers do their own thing. At the same time, many rumors and untruths are circulating on the internet, which this article aims to clear up. At CAK VAPE, we want enlightened customers who make their purchasing decisions based on fact-based knowledge. Therefore, we are happy to bring some light into the darkness – according to our current state of knowledge.
It may happen that your favorite flavor is no longer produced. Be it because the manufacturer generally stops production. Or because this line in particular is no longer profitable. Whatever the reason is, now is a good time to stock up. Because you can still get products from the old stock until February 2023 at the usual price or even cheaper – but only while stocks last!
The same applies to bases, by the way. Whether with or without nicotine – if you want to fill up your supply cheaply, you should start now. Because one thing is certain: large volumes will explode in terms of price.
Outlook for 2023 – what needs to be done?
If you have made provisions, you should have a solid supply of liquids by February 13th, 2023. After that, the tax must be levied – regardless of whether old stock or fresh goods. But the price hike will continue. Because in addition to the tobacco tax, there are other additional costs for the producers. On the one hand, it is the increased energy and raw material prices that make it difficult to work economically. On the other hand, every bottle of liquid must have a tax stamp from February 14th, 2023. This may be a trifle for you as a consumer. For a producer, however, it is a financial expense that cannot yet be quantified.
Incidentally, e-cigarettes themselves have so far been exempt from tobacco tax. So an invitation to you to question your vaping behavior: does it really have to be the powerful DL liquid spinner? Or maybe an economical pod system is enough? The bottom line is that it’s all a matter of attitude. It’s worth taking a look at our large range of pod systems.
This is how the market will change from 2026 – a forecast
Diversity as we know it today will disappear. Unfortunately, this is a sad step, but necessary from an economic point of view. Producers will have to reduce their range and discontinue lines that are not doing as well. So our tip again: Stock up on your favorite aroma while it’s still available tax-free.
As long as the amount of the tax is not linked to the nicotine content, the commercially available 10 ml bottles could only be offered in high doses and/or with nicotine salt.
Is vaping unattractive thanks to the tobacco tax?
Not necessarily. Because the bottom line is that, despite tobacco tax on liquids, e-cigarettes are still cheaper than regular consumption of cigarettes. Because even heavy smokers can get by with a small 10 ml bottle of liquid with 18 mg nicotine for around two days. Still a bargain at around 3.50 euros per day. So don’t freak out and act prudently.
CAK has been in the electronic cigarette industry for several years. We know how painful this development is. Fortunately, our products have passed the market test. And the products are sold all over the world.There is also a lot of heart and soul in our online shop. Nevertheless, we will not let the tobacco tax get us down. We hope that you too will stay with us as a customer. Do you have questions about the tobacco tax? Feel free to send us a message, we will be happy to help you with words and deeds!