Dáil Éireann Debate, Tuesday - 5 October 2021
215. Deputy Colm Burke asked the Minister for Finance the extent to which his Department and the Department of Health are engaging at a European level to ensure reform of tobacco taxes across the EU including lobbying for equal tax treatment for reduced risks products and traditional cigarettes in view of the expected publication of the updated Tobacco Directive by the European Commission in 2021; and if he will make a statement on the matter. [48204/21]
View answerThe taxation of tobacco products is governed by the Tobacco Products Tax Directive 2011/64/EU. The Directive aims at ensuring the proper functioning of the internal market and, at the same time, seeks to promote a high level of health protection and to fight against tax fraud, tax evasion and illegal cross border shopping.
The upcoming review of the EU Directive is set to include a revision of EU minima taxation rates, the introduction of harmonised taxation rates, legislation on cross-border purchasing and product regulation, among other issues. The Department has so far engaged with preliminary work undertaken on behalf of the European Commission, regarding minimum rates and harmonised tax regimes for novel products. It is likely that work on updating the EU Directive will begin in the coming months.
Domestically, the Programme for Government outlined plans to introduce a targeted taxation regime to specifically discourage ‘vaping’ and e-cigarettes. The Healthy Ireland Strategic Plan 2021-2025 also cites the exploration of taxation regimes in relation to novel tobacco products and electronic cigarettes as part of the revision of the EU Tobacco Products Directive as an implementation action. Both the Department of Finance and the Department of Health are of the view that tax policy in relation to novel products such as e-cigarettes and heated tobacco products may be best addressed in the context of the revision to the Tobacco Products Tax EU Directive. The introduction of a harmonised taxation rate for novel products at EU level would be welcomed as the current taxation regimes for novel products vary greatly between EU Member State.
