In 2024, Portugal’s tobacco tax will be extended to nicotine-free vapes. This is according to the national budget proposal, which foresees an increase in tobacco taxes of 176.6 million euros, according to Portugal News.
The extension of the tax to nicotine-free vapes is due to “the exponential growth of the consumption of these products in Portugal. On the one hand, a way for new consumers to develop the smoking habit, and on the other hand, due to the lack of control over these products” , posing a risk to public health.”
The national budget proposal also stipulates that cigarettes will be taxed regardless of price based on their harm to public health, with higher taxes especially on cheaper products, which is a barrier to the entry of new consumers, another goal of the government. An action point.
Align the minimum tax rate on Portuguese cigarettes with the European average, introduce an automatic renewal mechanism for tobacco taxes, harmonize taxes on other tobacco products or equivalents (cigarillos, roll-your-own/fine-cut tobacco, heated tobacco, electronic cigarettes containing nicotine), and Taxes on cigarettes are among other actions governments have taken to discourage consumption.
In addition, the document reads: “Revenues from the Tobacco Tax (IT) are also expected to increase by €176.6 million and from the Alcohol and Alcoholic Beverages Tax (IABA) by €39.6 million due to increases in private consumption and domestic demand next year. Growth and Update on Proposed Tax Rates,”
However, this decision also triggered a series of controversies and discussions. The Portuguese government’s expansion of tobacco taxes to vapes means that vape products will face a higher tax burden. This could lead to higher vape prices, with significant consequences for consumers and the industry. On the one hand, this could reduce vape sales and make it harder for people to obtain alternatives to traditional cigarettes. On the other hand, some people think this is a reasonable move because vapes also contain ingredients such as nicotine, which poses potential health risks.
Challenge:
Expanding tobacco taxes to vapes also poses challenges to manufacturers such as Veehoo vapes. First, higher tax burdens may affect their competitiveness. If vape prices rise, consumers may turn to cheaper alternatives or find other ways to satisfy their nicotine needs. Secondly, the strengthening of supervision may lead to more restrictions and requirements, causing further trouble to the vape industry.
Prospects for veehoo vapes:
Despite facing some challenges, veehoo vapes still have the opportunity to find opportunities in this change. First, veehoo vapes can use this opportunity to demonstrate their commitment to product quality and safety. By complying with stricter regulatory standards, they can build a good reputation and attract consumers who are more concerned about product quality and health and safety. Secondly, veehoo vapes can provide more types of products through innovation and research and development to meet the needs of consumers. This may include low- or no-nicotine options, as well as more flavor and style variations.
In conclusion:
The Portuguese government’s extension of tobacco taxes to vapes is one of the current global trends in regulating the vape industry. This decision has a significant impact on the vape industry and consumers, while also creating challenges for manufacturers. However, this is also an opportunity for brands such as Veehoo vapes to provide consumers with better choices through continuous improvement of product quality, compliance with regulatory requirements, and innovative research and development. The future of the vape industry will depend on the efforts and cooperation of all parties to ensure product safety and consumer health.
Tags: Portugal vape tax，What are the new smoking laws in Portugal，Why are vapes so expensive in Portugal，veehoo vape
