Spanish anti-smoking organisations have urged the government to introduce a tax scheme for e-cigarettes as part of the new Tobacco Act expected to be approved by the end of 2021.
The umbrella organisation the National Committee for the Prevention of Smoking (Comité Nacional para la Prevención del Tabaquismo, CNPT) has prepared a report for the Ministry of Health suggesting an excise duty based on both volume of liquid and the nicotine content.
Specifically, it proposes a general e-liquid tax at the EU average rate of €0.15 per ml, with an additional element for nicotine content at €0.006 per mg.
According to CNPT estimates, with an average tax rate of 35.6%, the Spanish government could collect €35m a year from the tax.
“This is a viable option for the Spanish economy,” Marta Trapero, tax expert and CNPT member, told ECigIntelligence. “The government would obtain an economic return, while at the same time promoting a reduction in the consumption of these products.”
The Ministry of Health prepared a draft amendment to the current Tobacco Act late last year, including some provisions on e-cigarettes, which it does not consider safe. “We need this new anti-smoking law to be approved as soon as possible,” CNPT president Andrés Zamorano said.
What This Means: If the Spanish government finally decides to include a tax scheme for vaping products in the upcoming law it will have a major impact on the industry in the country, which is currently not subject to any specific tax on e-cigarettes.
ECigIntelligence understands the CNPT’s proposal is currently being discussed internally between the Ministry of Health and the Ministry of Finance.
– Marta Villena ECigIntelligence contributing writer