Dublin, 20.12.2023. – Irish Minister for Finance Michael McGrath postponed the implementation of a vaping tax over concerns that it would discourage smokers who use e-cigarettes to quit smoking.

Department of Finance officials mentioned that a balance needed to be found to discourage young people from vaping while also supporting existing smokers using e-cigarettes to switch. Similar comments were made by Department of Health officials, who recommended that e-cigarettes be taxed differently based on their comparative harm in relation to traditional cigarettes.

Michael Landl, Director of the World Vapers’ Alliance, commented: 

“We welcome the decision of the Minister of Finance and ask the Irish Government to keep a tax differential between electronic and traditional cigarettes in the future large enough to incentivize smokers to switch. The risk profile of vaping products is much lower than that of combustion cigarettes and they should be taxed as such. If the tax had been approved, it would have pushed tens of thousands of vapers back to smoking”.

Research has shown that increasing vaping taxes can lead to higher smoking, particularly among young adults. Department of Finance submission also expressed concerns over vapers switching to the black market in case the tax was enacted. Implementation of the tax was postponed with no new date in sight, while the government also waits for an EU framework to ease its implementation. The update of the EU Tobacco Tax Directive is expected to include a EU wide excise tax on vaping products.

Michael Landl added:

“Taxing vaping products similarly to combustion cigarettes would have a negative impact on public health as it would push vapers back to smoking or the black market and discourage smokers from switching. We recommend other countries and the EU to follow Ireland’s example and refrain from implementing vaping taxes”.