Tobacco taxes are also a large supply of 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. Contrary to the USA, tobacco tax revenues have remained relatively steady despite declining numbers of smokers. But that’s as a result of huge tax increases instead of 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 difficult to get accurate figures of the amount of Reviews Electronic Cigarette for the entire of Europe, but Reason.com estimates that by 2016 6 million vapers had used electronic cigarettes to prevent smoking, while a further 9 million had used vaping to reduce back. More recently, Japan Tobacco International estimated there were approximately 40 million vapers on the planet, with all the possible ways to grow to around 110 million by 2025. With Europe having around 30% from the total, that will mean around 12 million vapers currently.
That’s still small compared to the quantity of smokers inside the EU. The populace from the EU is around 512 million, and Europe estimates that around 26% from 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 comparable to around 9% of the total variety of smokers, we could roughly estimate the reduction in tobacco revenue to become around 7.2 billion euros, with disclaimers as before (the inability to make up dual vapers, for those who have quit both smoking and vaping and the reality that there are more vapers in countries with higher taxes on cigarettes.)
A short mention here of healthcare. Health care is usually excellent inside the EU, so obviously governments to have to fork out for the cost of smoking diseases. But these are typically cheaper to take care of than old age diseases (carcinoma of the lung is a much faster killer than dementia). Smoking diseases also strike many smokers around about pensionable age, saving governments many billions in pension payments.
Of course, we can’t know if these concerns influence the EU. But we can look at just what the EU has done and said. So long ago as 2013, MEPs were raising concerns about e cigarettes. Here’s what one MEP asked: “The usage of traditional cigarettes offers the Member States with sizeable revenues, as a result of the substantial taxes that they are subject… can the Council state what action it plans to use to address the variations in tax revenue materialising in State coffers pursuing the proliferation of electronic cigarettes, which currently appear to be clear of any form of duty?”
The EU commission proceeded to try to medicalise e-cigarettes (a highly effective ban, as at the time there were no electronic cigarettes with medical authorisation). Due in part to vigorous campaigning by vapers, this cause the messy compromise that is the Cigarettes And Tobacco Products Directive. Vaping has become restricted, but remains legal.
The EU has additionally held consultations on implementing vape specific taxes. I attended one of many consultations in London, and the EU representative actually posited tax as a positive factor for the vaping industry – on the basis which a standard EU vape tax can be quite a lot much better than draconian taxes imposed by individual countries. An alternative stance is recorded in EU documents, where they appear to estimate that by harmonising duties on e-cigs, tobacco tax losses might be confined to 2.5% of total tax revenue. (Source: EU Commission Report).
To date these initial attempts have been thwarted. But that may not really be the case, and many in the business think it’s only a matter of 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? In accordance with 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.