Ireland’s finance minister, Michael McGrath, has delayed the implementation of a Vape Tax due to concerns that it could discourage smokers from using vapes as a means to quit.
The Department of Finance officials highlighted the importance of finding a balance between deterring young people from taking up vaping while still supporting current smokers who switch to vapes for cessation purposes. Reports have suggested that health officials recommended that vapes be taxed based on their relative harm compared to traditional cigarettes.
McGrath acknowledged the complexities involved in introducing a new tax on vaping products, describing it as a “challenging” task. He stated that implementing a domestic tax would require significant investment in IT infrastructure, administrative support, and compliance measures.
Vape Tax Disparity Motivates Smokers to Switch to Vapes
The decision to postpone the vape tax has been welcomed by advocates for tobacco harm reduction. Michael Landl, director of the World Vapers’ Alliance, applauded the finance minister’s choice and urged the Irish government to maintain a vape tax difference between electronic and traditional cigarettes.
Landl emphasized the need for this difference to be significant enough to incentivize smokers to switch to vapes, as they are considered to have a lower risk profile. He further warned that approving the vape tax would have caused a substantial number of vapers to revert to smoking.
No specific timeline has been provided for the introduction of the vape tax in Ireland. Some speculate that it may be contingent on the forthcoming revised EU Tobacco Tax Directive, which is anticipated to include a Europe-wide excise tax on vaping products.
