While the European Commission is engaged in a consultation processon the taxing of e-cigarettes, seven EU member states have already instituted their own tax schemes.
Between them, a variety of rates have been set. Unlike in the U.S., however, where several states and local governments have applied taxes on an array of different principles, in Europe taxation has mostly been established on the principle of a set figure per millilitre of e-liquid.
Every four years the European Commission is required to review the rates and structures of excise applied to manufactured tobacco set forth in Directive 2011/64/EU and where appropriate propose changes. The directive mandates a framework for taxing tobacco products to ensure a harmonised approach among member states.
E-cigarettes are not currently included in the directive, and while heat-not-burn (HnB) products contain tobacco and are therefore subject to taxation, their treatment is not explicitly addressed.
