Italian e-cigarette firms say new tax benefits tobacco
A new tax on “reduced risk” products such as e-cigarettes will also apply to heat not burn tobacco products. That has some of the vapor product retailers in Italy upset.
The tax, which was adopted in January, is set at half the rate of that on traditional cigarettes. The controversy centres on the fact that the lower rate is applied to both electronic cigarettes and to tobacco products such as Marlboro HeatSticks, which Philip Morris is launching in Italy alongside a 500 million euro ($568 million) factory investment.
E-cigarette companies say applying the discount to tobacco products is unfair, and designed to help Big Tobacco. The firms and industry experts also say the method of calculating the tax is too complicated and gives an unfair discount to Philip Morris’ products.