In a move aimed at curbing the rising use of vaping products, the Irish government has announced the introduction of a new excise duty on e-liquids. This measure, revealed as part of the 2025 Budget, seeks to deter vaping, particularly among young people, by making it more expensive. With concerns growing about the health impacts of e-cigarettes and their popularity among teenagers, the vape tax has sparked widespread debate across Ireland. Here’s what you need to know about the new tax, when it will be implemented, and what it means for vapers and retailers alike.

What Is the Vape Tax About?

The new tax imposes an excise duty of €0.50 per millilitre of e-liquid, which will apply to both nicotine and nicotine-free products. For instance:

• A standard disposable vape containing 2ml of e-liquid will see a price increase of €1 due to the tax, making a vape that used to cost €8 now retail for approximately €9.
• For larger e-liquids, such as a 10ml bottle, the tax would add an additional €5 to the cost.

The goal of this tax is to make vaping less attractive, especially to young people who are increasingly turning to e-cigarettes. The Irish Heart Foundation and other health organisations have welcomed the move, arguing that higher prices will help reduce youth uptake. However, the vaping community and some retailers argue that the tax could push people back to smoking traditional cigarettes, which are even more harmful.

When Will the Vape Tax Be Implemented?

The new excise duty on vaping products is set to be enforced by mid-2025. While the exact date is yet to be confirmed, it will be implemented through a ministerial commencement order. The delay is due to the administrative challenges involved in applying the new tax, particularly the need to update point-of-sale systems and ensure that all retailers are compliant.

The phased approach also gives retailers time to adjust their pricing strategies and manage existing stock before the tax comes into effect.

Why Is the Government Introducing This Tax?

The introduction of the vape tax is part of a broader public health strategy aimed at reducing nicotine consumption and protecting young people. Recent studies show that e-cigarette use among Irish teenagers has doubled in the past five years, with flavours such as bubblegum and fruit being particularly popular. Health experts argue that these products serve as a gateway to traditional smoking.

Finance Minister Jack Chambers stated that the tax is intended to balance two objectives:

• Discouraging young people from starting to vape.
• Supporting existing smokers who use e-cigarettes as a tool to quit smoking.

While acknowledging the role of vaping in smoking cessation, Chambers emphasised the need to prevent a new generation of young people from becoming addicted to nicotine.

Mixed Reactions: Health Advocates vs Vaping Community

Health advocates have praised the tax as a much-needed measure to protect public health. The Irish Cancer Society and the Irish Heart Foundation argue that higher prices will discourage young people from vaping, citing research that price increases are among the most effective ways to reduce tobacco and nicotine use.

However, the response from the vaping community has been far less enthusiastic. Many vapers see the tax as punitive, arguing that it could drive people back to smoking traditional cigarettes, which remain significantly more harmful. There are also concerns about a potential rise in black-market sales of untaxed e-liquids, making it harder to regulate product safety.

Retailers have also expressed concerns, arguing that the tax could hit small businesses hard, leading to job losses and store closures. Some vape shop owners have called for exemptions or lower rates for e-liquids with low nicotine levels to encourage smokers to switch to less harmful alternatives.

The European Context: A Unified Approach

Ireland is not alone in seeking to tax vaping products more heavily. A coalition of 16 EU countries, including Ireland, has called for the inclusion of e-cigarettes in the EU’s tobacco taxation framework. This would harmonise the way vaping products are taxed across Europe, preventing cross-border shopping and ensuring consistent regulations.

The EU’s move towards taxing e-cigarettes is part of its wider goal to create a “tobacco-free generation” by 2040. The Irish government’s decision to introduce a vape tax aligns with this vision, suggesting that further measures could be on the horizon if vaping rates do not decline.

Looking Ahead: What Does the Future Hold?

The true impact of the vape tax will depend on how it is enforced and whether it is accompanied by additional measures such as education campaigns and support for smoking cessation. Health experts argue that without complementary actions, the tax alone may not be enough to reduce vaping rates significantly.

As the implementation date approaches, the government will need to strike a careful balance between protecting public health and avoiding unintended consequences such as a rise in cigarette smoking or a thriving black market for untaxed e-liquids.

A Controversial But Necessary Step?

The new vape tax has undoubtedly sparked controversy, highlighting the tension between harm reduction and prevention. While health advocates see it as a necessary step to protect young people, vapers and retailers argue that it could do more harm than good by pushing people back to smoking.

As Ireland joins other European countries in taxing vaping products, the debate is likely to continue. For now, one thing is clear: the days of cheap vapes in Ireland are coming to an end.

Stay informed with itson.ie.