What does this mean for consumers?
For consumers, this change means that all e-cigarettes and liquids will from now on be subject to a tobacco tax when the product is purchased. The adjustment is intended to protect health, among other things. The introduction of the law increases the price and is thus intended to keep consumers away from the harmful product. Likewise, it is supposed to create an equity aspect in terms of tax revenue. Until now, the liquids were not treated in terms of tobacco tax and were therefore not subject to tax. Thus, nicotine-free liquids were equated to nicotine-containing liquids.
What impact will this change have on manufacturers?
From now on, liquids will only be produced and sold with tax bands. The banderoles will be issued by the Federal Printing Office and affixed to the products as a seal. When the product is opened, the band is thus invalidated. Thus, not only the tax obligation has changed, but also other requirements for the overall product. The traditional boxes were used with a tuck-in flap on the lid and bottom. Now the opening of the bottom must be prevented. Otherwise, the product could be removed without invalidating the band.
This means that, in addition to a banding solution, many manufacturers also have to renew or at least rebuild the case packer. Above all, this lengthens the manufacturing or packaging process, which then leads to price increases.
Where does the law apply?
Currently, the law only applies within Germany. However, there are to be new talks at the end of the year at the European level about it. Desire is to be created here a uniform regulation. However, it is feared that most will follow.
What are the costs?
For consumers, the main thing that changes continuously is the price. Currently, the price for 10 ml of liquid is 5.00 EUR. By 2026, the price should gradually rise to a full 8.00 EUR. That means a price increase of 60%.
The product may still be sold until at least February 13, 2023, without a band. This is the main reason why manufacturers are producing at full speed at the moment, in order to offer their consumers the cheaper and tax-free liquids.