TABLE 2. Types of excises applied on ENDS and ENNDS products e-liquids globally, 2022.
|
Type of excise |
Countries |
|
|---|---|---|
|
Taxing only nicotine-containing e-liquids (ENDS products) |
Taxing all e-liquids (ENDS and ENNDS products) |
|
|
Specific |
|
|
|
Base: volume per mL |
Albania, Denmark,a Kazakhstan, Kyrgyzstan, Pakistan, Portugal, Republic of Korea, Romania, Sweden,a Uzbekistan |
Azerbaijan, Cyprus, Estonia,d Egypt, Finland, Germany,e Georgia, Greece, Hungary, Indonesia,f Italy,g Latvia, Lithuania, Montenegro, Morocco,g North Macedonia, Philippines,h Poland, Russian Federation, Serbia, Slovenia,g Ukraine |
|
Base: unit/cartridge |
Kenyab |
|
|
Ad valorem |
|
|
|
Base: retail price |
Ecuador |
Costa Rica, Yemen |
|
Base: retail price exclusive of excise and VAT |
Bahrainc |
Saudi Arabia, United Arab Emirates |
|
Base: cost insurance freight (CIF) value |
|
Jordan |
Notes:
In Denmark (as of 1 July 2022) and Sweden, a differential tax is applied, with a higher rate for e-liquids with a higher nicotine concentration.
In Kenya, the base of the tax on e-liquids is defined on a per unit basis, per cartridge. The amounts of the tax would apply regardless of the volume of the cartridge declared.
Tax applied to e-shisha (or e-hookah) because e-cigarettes are banned in Bahrain.
This tax has been temporarily suspended (April 2021 to December 2022).
Tax implemented as of 1 July 2022.
Moving from an ad valorem excise, Indonesia started imposing from January 2022 a specific excise on ENDS/ENNDS e-liquids with a differential rate applied for open and closed systems. The higher rate is applied on closed systems.
Italy, Morocco, and Slovenia impose differential rates for nicotine and non-nicotine containing liquids. The higher rate is applied to nicotine containing liquids.
The Philippines imposes a differential tax on freebase and salt nicotine-based e-liquids. The higher rate is applied on salt nicotine.
Sources: WHO Technical Manual on Tobacco Tax Policy and Administration 2021 (4). WHO Report on the Global Tobacco Epidemic, 2021 (5). ECigIntelligence, October 2021 (20). ECigIntelligence, November 2021 (21). Indonesia’s Ministry of Finance regulation 193/PMK.010/2021 (14). Ecuador Internal Tax Regime Law 2020 (17). Costa Rica Gazette 12 of 20 January 2022 (18).