After a long battle with negotiations and consultations, the European Council has finally decided to tax vape products in the same way as tax tobacco, with a tax on vapes applying across the EU.
The European Council will submit a proposal about this decision to the European Commission.
Tax for vape actually has benefits. For example, this policy will prevent unreasonable tax in different counties in the EU.
Also, the EU could require a small amount of tax on vape products. Tax on vapes might help some vaping industries to a certain extent, particularly in the country with a high tax fee. But this also possibly lead to an increase in product prices.
EU could also decide a tax range so that individual governments could set the amount of tax according to their own reality.
But there is a prediction that the price of vapes will rise because of the pressure from tax. Also, if vapes become more expensive than now, to a certain extent, the number of vapors may decline, while an increase in cigarette smoking. Vapors turning back to smoke may hinder the process of Tobacco Harm Reduction (THC).
At present, the UK government promised there is no tax for vape. If the UK leaves the EU before the proposal about vape tax is adopted, and the new tax on vape starts to apply, then tax policy on vape in the UK may remain the same.
The process of works of the EU commission usually grinds slowly. Vape companies could adjust their business strategies and infrastructure based on the latest trend.
According to the negotiation, the UK will finish the transition, and complete leaving the EU at the end of this year. However, due to the COVID-19, the progress of Brexit may be affected and slow down. Therefore, there is no guarantee that the UK will finally leave the EU.
Furthermore, even though the UK successfully leaves the EU, it doesn’t mean the EU’s policy will not influence the UK.
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