France: Towards a tax of 15 cents per milliliter on e-liquids

Deputy Charles de Courson proposed an amendment to introduce a tax of 0.15 euros per milliliter of e-liquid, whether or not it contains nicotine. The stated goal is to protect youth and generate 200 million euros in revenue for the State.

Update of October 20:
For now, this tax is no longer current. The bill as a whole was rejected, and the National Assembly will have to resume discussions based on the original text, which could reintroduce this tax in future amendments.

A tax on vaping products under consideration

Centrist deputy Charles de Courson submitted an amendment proposing a tax on vaping products, set at 15 cents per milliliter, regardless of nicotine content. According to him, this measure aims to prevent legal loopholes and regulate the market. If adopted, a 50 ml bottle would see its price rise to €27.50, and a 10 ml bottle would reach an average of €7.40.

Potential impact on the e-liquid market

This proposed tax comes with a justification: vaping products, although considered a smoking cessation aid, are not without risk, especially for young people and non-smokers. De Courson hopes to gain support beyond the government majority by presenting his amendment as "cross-party." However, left-wing parties such as La France Insoumise, the Socialist Party, and the Greens unanimously rejected the amendment along with the overall bill.

On the right side of the chamber, Philippe Lotiaux of the National Rally expressed his support for this amendment, using arguments similar to those of the tobacco industry. However, this support is not widespread within his own camp, with some deputies being poorly informed or uninterested in the issue.

A deputy with changing positions

Charles de Courson has not always supported tax increases. In 2022, he was criticized by an anti-tobacco association for submitting an amendment reducing a tax on heated tobacco, sparking accusations of a "tax gift" to Philip Morris. Moreover, in 2014, he had already proposed limiting tobacco taxes, a project that, according to some sources, was inspired by Philip Morris.

In 2021, he met with Jean-Christian Haltel, a vape shop owner, with whom he discussed the effects of taxes on the development of the black market. This raises the question: does De Courson adapt his positions according to circumstances, shifting from supporting tax reductions to defending their increase on other products?

Fivape in opposition

The Interprofessional Federation of Vaping (Fivape) quickly responded by issuing a statement denouncing the negative effects of such a tax. It believes that a 38% price increase on e-liquids would heavily penalize small vape businesses, which represent 85% of the market, while the tobacco industry, which controls 15% of the sector through closed systems, would benefit.

Jean Moiroud, president of Fivape, recalled that one of the main drivers of smokers transitioning to vaping is the more affordable price compared to traditional cigarettes. According to him, such a price increase would harm the effectiveness of vaping as a smoking cessation tool.

Outlook

If the amendment can only come into effect if the overall budget is approved, its future remains uncertain. Nevertheless, the debate around this tax could become part of future legislative discussions. As is often the case in France, once a tax is introduced, it tends to increase over time. The issue therefore remains one to watch closely.