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Portuguese government to tax e-cigarettes and chewing tobacco

ecigThe tax rate will be set at 60 cents per millilitre, according to proposals contained in the 2015 State Budget as the government hopes to raise in excess of €105.9 million in tobacco taxes next year.

The list of taxable products in the tobacco category has just grown to include e-cigarettes which have gained wide acceptance as they deliver nicotine but involve zero smoke inhalation yet they are included in the tobacco tax category on the pretext of tax equity with tobacco products.

In addition to electronic cigarettes, snuff and chewing tobacco are included in the new range of taxable products.

The government justifies its widening of the tax net "for reasons of public health as well as tax equity, since they are products that are presented as substitutes for tobacco."

There also will be a minimum tax on cigars and cigarillos, products that until now had "a more favourable tax treatment compared to other tobacco products."

With these changes, the Government estimates to rake in over € 105.9 million in tax revenue next year.

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Comments  

+2 #1 mm 2014-10-16 13:49
does that mean electric chewing gum tobacco will be taxed as well :cry:

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