January could change the tax system concerning the electronic cigarette by returning the ecig liquid prices to more acceptable parameters. It has been acknowledged in the budget committee in the Senate an amendment to the law of stability that actually commits the Government to consider the introduction of a tax on consumption parameterized by the nicotine contained in the product (edit: it is an agenda and not of an amendment, but the political substance of the speech does not change).
The first important consequence of a legislative definition of the genre would be primarily a rebalancing of the liquids costs. It would give a chance to those who have decided to abandon the traditional smoking that is definitely harmful and sometimes even lethal (through the use of products manufactured by companies like V2 electronic cigarettes to be able to opt for the most effective system to date, according to numerous and authoritative research, to combat smoking and that is the use of electronic cigarettes like the V2 ecigs. In fact this amendment is due to a series of circumstances and requirements. As argued by the speakers, and apparently shared by the other members of the Committee, the application of the previous tax resulted in an increase of 150% of retail prices and wholesale of over 300% compared to last year by determining: a complete suspension of the market, loss of competition from Italian companies (about 70% of sales less than in 2014), customers often illegal diversion to alternative supply methods (foreign web sites that do not appoint a tax representative in Italy and then commercialize liquids taxed at reduced prices) and finally an increase in production of “do it yourself” means.
The senators who proposed the agenda stressed that the combination of these factors resulted in: foregone tax revenue for the exchequer (revenue will not exceed 11 million euros), lack of fiscal and health checks on the products in circulation does not conform to the standards and the crisis of Italian companies resulting in the loss of over 4,000 jobs. These laws are targeting companies like V2 cigs that are here to help smokers quit and/or reduce the risks they are exposed to and they are being lumped in together with the tobacco companies.
A worry though; MPs are mainly inconsistencies and legal limits of the legislation in force so much so that the Constitutional Court intervened on the matter, ruled by highlighting a number of critical issues to be overcome: the indiscriminate subjection to tax of any product containing “other substances” different from nicotine, the unreasonable extension “of the administrative and tax schemes as their own tobacco also trade in flavored liquids which cannot be regarded as tobacco substitutes,” the excess of administrative discretion. Promo codes for V2 ecigs definitely does not fall within these constraints.
Summing up the approval of the agenda on new taxes regarding ecigs find its ratio (from the point of parliamentarians) view as a tax on consumption of parameterized nicotine contained in the product (Euro / mg), would allow an easier monitoring of the sale of nicotine through the supply chain. Companies like V2 ecigs which have varying products with or without nicotine content and verying levels of this nicotine find these new policies unfair. With the traceability of nicotine upheaval also the possibility of tax avoidance.