Lithuanian lawmakers have proposed a staggering 1,460 per cent tax rise on e-liquids by 2027.
Vaping advocates argue that the price increase amounts to a “hidden ban” on vapes, as it will make them unaffordable.
The new proposal is to hike the excise tax on e-liquids by as much as 150 per cent per year from 2025 to 2027 . This would make the new rates €0.63/ml in 2025, €1.56/ml in 2026, and €3.91/ml in 2027.
A source at the Lithuanian Trade Association, said lawmakers were playing a “high stakes poker game,” as the rise will make vapes unaffordable and prevent people using them as a tool to quit smoking.
They said: “In Lithuania, a high-stakes poker game is likely taking place between lawmakers, proposing to increase the excise tax rates for e-cigarette liquids.
“There is a proposal to remove us from the market and raise the tax rate each year by 150 per cent from 2025 to 2027. The current highest/latest proposal is to raise it to 3.91 EUR/ml by 2027.
“The final price difference would be 1460 per cent compared to 2024. In our opinion, through this tax increase, a hidden ban on e-cigarettes is effectively being introduced. “
The planned increases are substantial compared to other tobacco product categories; traditional cigarettes will see an annual rise of around 8.5 per cent and heated tobacco 12.5 per cent.
The draft law was approved by the Budget and Finance Committee on June 17 and will be discussed today in the Parliament at the plenary session. Voting on the issue could happen as soon as June 20.
Previously, the committee had considered a proposal for a more moderate 60 per cent annual rise on e-liquid tax, but this was rejected.
The latest proposal says that the current rate of excise duty on e-liquids is low compared to cigarettes, making them too attractive to young people.
The text (translated to English) says: “The rate of increase in the excise rate for e-liquids (60 percent annually) proposed in the draft amendment to the Excise Law would not fundamentally change the existing status quo and would allow to continue to maintain their low price, high affordability and attractiveness of the price, especially for young people, and would allow unscrupulous sellers to continue to earn.”
It goes on to say that profits from the new tax will be used for the country’s defence fund.
It says: “Taking this into account, it is proposed to increase the share of excise duty in the price of products of this category and thereby reduce their affordability and the development of consumption, especially among young people, and at the same time collect more additional income for the state defence fund.”
The government also says it wants to avoid vapes being used as a ‘substitute’ for cigarettes, even though studies show that they are an effective tool in helping people to stop smoking.
