The electronic cigarette does long escape taxes?

CONSUMPTION - While tax revenues to tobacco products are reduced , the eyes are on the electronic cigarette ...

Reviews for smoking. On Monday, the price of a packet of cigarettes increased by 20 cents and that of rolling tobacco , 50 cents. And yet, despite these new increases , tobacco bring less money to the state this year. Just because sales of cigarettes , cigars and rolling tobacco have declined steadily in France .

Result : In 2014, excise duties on these products should provide the public finances, and especially Social Security, main recipient of such income , € 11 billion, 131 million less than in 2013.

electronic cigarette

" Taxing nicotine "

Bercy says rejoice in this loss, "because we do not rely on these taxes to reduce the country's deficit and because the gain in terms of health , so public spending , should also be considered ," suggests a source. Perspective as an argument , do not be fooled , the decline in consumption is also due to increased purchases of contraband cigarettes and borders. And the conversion of some smokers vapotage .

Because the electronic cigarette has the wind in its sails . This market is growing about 15 % per month. However, the e-cigarette supports for the moment VAT at 20% , as the traditional cigarette , but it is not subject to excise duties on tobacco, which represent 64.7% of the sale price of a packet .

For Professor Yves Martinet , president of the National Committee against Tobacco ( NCTC ): " There needs to be an intermediate taxation on e-cigarettes , which take into account the risk to the health of the user. This fee must be higher than that imposed on current products, but lower than for tobacco . " The idea is not to "tax the e-cigarette, but it contains nicotine ," says the expert.

Bercy says he does not consider tax

The NCTC argues in this sense at Bercy. And if the Budget Ministry says it does not "consider new taxes on e- cigarette " professionals of this sector do not delude ourselves: " We expect an increase in taxes in a year or two we have even budgeted in our forecast three years , "says Karin Warin , founder of the brand Clopinette , leading distributor of electronic cigarettes in France . "But these taxes should remain limited , not to destroy our market. Especially , if nicotine is an addictive product, it is not harmful and it should make a difference in terms of taxation . "electronic cigarette wholesale china

The ruling also states that " the tobacco market is 14 billion euros , against 200 million for the electronic cigarette. Obviously, increase our taxes do not offset the loss of tax revenue from tobacco products . "