EU member states plan to ask the European Commission to place novel tobacco products, electronic cigarettes and heated tobacco products under the EU Tobacco Excise Directive, meaning they would be taxed just like traditional tobacco products, reports Euractiv.

“The current provisions of Directive 2011/64/EU have become less effective, as they are either no longer sufficient or too narrow to address current and future challenges, concerning some products, such as liquids for e-cigarettes, heated tobacco products and other types of next-generation products, which are entering the market,” Euractiv cites the draft Council conclusions.
“It is therefore urgent and necessary to upgrade the EU regulatory framework, in order to tackle current and future challenges in respect of the functioning of the internal market by harmonising definitions and tax treatment of novel products (such as liquids for e-cigarettes and heated tobacco products), including products, whether or not containing nicotine, that substitute tobacco, in order to avoid legal uncertainty and regulatory disparities in the EU,” the conclusions add.
Although novel tobacco products are regulated under the Tobacco Product Directive, which focuses on the health aspect, there is currently no EU-wide excise framework as there is for traditional tobacco products. The situation in the EU single market is quite fragmented, with some member states taxing e-liquids and heated tobacco products at different rates, while others do not tax them at all, the report said.