Ireland Abandons Planned Vape Tax in Favor of Prioritizing Tobacco Harm Reduction

The Irish Minister for Finance, Michael McGrath, has opted to delay the imminent implementation of a vape tax due to concerns that it could dissuade smokers from utilizing e-cigarettes as a tool to quit smoking. Officials from both the Department of Finance and the Department of Health stressed the importance of finding a balance—discouraging youth vaping while supporting existing smokers transitioning from traditional cigarettes to e-cigarettes.

The World Vapers’ Alliance (WVA) lauded this decision, urging the Irish Government to maintain a disparate tax rate between vapes and cigarettes. Michael Landl, Director of WVA, underscored the substantially lower risk profile of vaping products compared to combustible cigarettes. He emphasized that the tax structure should be proportional to the products’ risk, creating an incentive for smokers to shift to safer alternatives.

Why Vape Taxes May Backfire:

• Studies indicate that raising vape taxes can lead to increased smoking rates, especially among young adults. Ireland's Department of Finance shares concerns about vapers turning to the black market if such a tax were imposed. The implementation of the tax has been postponed without a specified date, awaiting an EU framework to facilitate its introduction. The anticipated EU Tobacco Tax Directive update is expected to include a Europe-wide excise tax on vaping products.
• In alignment with the above, Landl pointed out that taxing vaping products akin to cigarettes could detrimentally impact public health by potentially driving vapers back to smoking or the black market, discouraging smokers from making the switch. He recommends that other countries and the EU follow Ireland's example and refrain from imposing vape taxes.

The Public Health (Tobacco Products and Nicotine Inhaling Products) Bill:

• Simultaneously, a new law in Ireland, effective December 21st, renders it illegal to sell vapes to individuals under 18. Health Minister Stephen Donnelly secured Cabinet approval for this measure, carrying penalties of fines up to €4,000 (approximately ZAR 71,588) and prison sentences of up to six months for violations. This age restriction is part of the comprehensive Public Health (Tobacco Products and Nicotine Inhaling Products) Bill, which also prohibits the sale of tobacco and nicotine products at events for children and the self-service sale of such items.
• Beyond restricting sales to minors, the legislation introduces a stringent licensing system, prohibits advertisements for these products around schools and public transport, and grants additional enforcement powers to the Environmental Health Service. These extensive measures aim to address smoking and vaping among adults while safeguarding minors.
• Health Minister Donnelly expressed gratitude for the support in passing the bill and committed to initiating the remaining measures, namely advertising regulation and the licensing system, in 2024. He added that the results of a public consultation on further vape, and tobacco control measures will be addressed.

Effective Approaches:

Meanwhile, countries like Sweden and the UK have achieved low smoking rates through successful tobacco harm reduction strategies. These strategies endorse the use of safer nicotine alternatives such as snus and vapes. The success of these countries lies in the availability and promotion of less harmful alternatives, coupled with educational campaigns. This approach recognizes that nicotine itself is not the primary harm; instead, it focuses on minimizing the risks associated with combustible tobacco use.