E-cigarette Tax Revenue in Some Countries

Sometimes excise taxes on alcohol or tobacco are called sin taxes, because they also punish the behavior of drinkers and smokers—and in theory help convince the sinners to quit their wicked ways. But because the government becomes dependent on the tax revenue, a decline in the smoking rate creates a financial shortfall that must be made up with some other source of income, or else the government must reduce spending. For most governments, the cigarette tax is a significant revenue source, and the excise is charged in addition to the standard sales tax assessed on most consumer products.

Albania
A 10 leke ($0.091 US) per milliliter tax on nicotine-containing e-liquid

Azerbaijan
A 20 manats ($11.60 US) per liter tax (about $0.01 per milliliter) on all e-liquid

Bahrain
The tax is 100% of the pre-tax price on nicotine-containing e-liquid. That equates to 50% of the retail price. The purpose of the tax is unclear, since vapes are supposedly banned in the country

Canada
A federal tax of $1 CAD (about $0.75 US) per 2 milliliters (or fraction thereof) on the first 10 mL in any bottle, pod, or cartridge, then $1 per additional 10 mL (or fraction thereof). The tax applies to all vaping products, with or without nicotine. Individual provinces may have additional taxes of their own. The tax, which is assessed on manufacturers or importers, took effect Oct. 1, 2022, but retailers may continue to sell older, untaxed products until Dec. 31, 2022

Costa Rica
A 20% wholesale tax on all vaping products and accessories

Croatia
Although Croatia has an e-liquid tax on the books, it is currently set at zero

Cyprus
A €0.12 per milliliter tax on all e-liquid

Denmark
A DKK 2.00 ($0.30 US) per milliliter tax on all e-liquid

Ecuador
A 150% wholesale tax on “other tobacco products” includes vaping products

Estonia
In 2018, Estonia imposed a €0.20 per milliliter excise duty on all e-liquid. In December 2020, the Riigikogu (parliament) suspended the tax—effective from April 1, 2021 and lasting until Dec. 31, 2022—with the goal of ending the large black market that has grown in the wake of the excessive tax (and a flavor ban). According to consumer nicotine group NNA Smoke Free Estonia, “self-mixed, cross-border and smuggled e-liquids account for 62-80% of the entire Estonian e-liquids market.”

Finland
A €0.30 per milliliter tax on all e-liquid

Georgia
A tax of 0.2 Georgian Lari ($0.066 US) on all e-liquid

Germany
A €0.16 per milliliter tax on all e-liquid. The tax will increase in steps until it reaches €0.32/mL in 2026

Greece
A €0.10 per milliliter tax on all e-liquid

Hungary
A HUF 20 ($0.07 US) per milliliter tax on all e-liquid

Indonesia
The Indonesian tax is 57% of the retail price, and seems to only be meant for nicotine-containing e-liquid (“extracts and essences of tobacco” is the wording). The country’s officials seem to prefer that citizens keep smoking

Israel
In January 2022, the Knesset (parliament) Finance Committee approved a modified version of the tax imposed in November 2021 by the Ministry of Finance. All vaping products are subject to a 270% wholesale tax and 8.16 NIS per milliliter tax on e-liquid. The minimum total tax must equal 15.6 NIS/mL. The tax is effective immediately

Italy
Taxe rates of about €0.13 per milliliter for nicotine-containing e-liquid, and €0.08 ($0.10 US) for zero-nicotine products are set to remain in effect through 2022

Jordan
Devices and nicotine-containing e-liquid are taxed at a rate of 200% of the CIF (cost, insurance and freight) value

Kazakhstan
Although Kazakhstan has an e-liquid tax on the books, it is currently set at zero

Kenya
The Kenyan tax, which was implemented in 2015, is 3,000 Kenyan shillings ($27.33 US) on devices, and 2,000 ($18.22 US) on refills. The taxes make vaping far more expensive than smoking (the cigarette tax is $0.50 per pack)—and are probably the highest vape taxes in the world

Kyrgyzstan
A 1 Kyrgyzstani Som ($0.014 US) per milliliter tax on nicotine-containing e-liquid

Latvia
The unusual Latvian tax uses two bases to calculate excise on e-liquid: there is a €0.01 per milliliter tax, and an additional tax (€0.005 per milligram) on the weight of the nicotine used

Lithuania
A €0.12 per milliliter tax on all e-liquid

Malaysia
A 10% tax on vaping devices and a 40 sen ($0.10 US) per milliliter tax on e-liquid. However, the government announced Oct. 29, 2021 that it would begin taxing nicotine-containing liquid, which will require a change in the law that prohibits sales of nicotine-containing products except by pharmacies. (In early 2022, this tax was postponed)

Maldives
Nicotine-containing e-liquid is taxed at a rate of 200% of the CIF (cost, insurance and freight) value

Montenegro
A €0.90 per milliliter tax on all e-liquid

North Macedonia
An 0.2 Macedonian Denar ($0.0036 US) per milliliter tax on e-liquid. The law allows automatic increases in the tax rate July 1 of each year from 2020 to 2023

Norway
A 4.5 Norwegian Krone ($0.51 US) per milliliter tax on nicotine-containing vaping products

Palau
Nicotine-containing e-liquid is taxed as loose tobacco at a rate of $294.12 (US) per 17 grams

Paraguay
The law classifies e-cigarettes as tobacco products, and taxes them at 16% (probably based on the wholesale price). However, most sellers don’t register the products as tobacco, but import them under other classifications

Philippines
A tax of 37 Philippine pesos (PHP) per milliliter for nicotine salt-based e-liquids, and 45 PHP per mL for freebase nicotine e-liquids. For both, the tax will increase by 5 pesos/mL each year until until 2023. From 2024 onward, the tax will increase by 5% each year

Poland
A 0.55 Polish Zloty (PLN) ($0.14 US) per milliliter tax on all e-liquid

Portugal
A €0.323 per milliliter tax on nicotine-containing e-liquid

Romania
A 0.52 Romania Leu ($0.12 US) per milliliter tax on nicotine-containing e-liquid. There is a method by which the tax can be adjusted annually based on consumer price increases

Russia
Disposable products (like cigalikes) are taxed at 50 rubles ($0.81 US) per unit. Nicotine-containing e-liquid is taxed at 13 rubles per milliliter

Saudi Arabia
The tax is 100% of the pre-tax price on e-liquid and devices. That equates to 50% of the retail price

Serbia
A 4.32 Serbian Dinar ($0.044 US) per milliliter tax on all e-liquid

Slovenia
A €0.18 per milliliter tax on nicotine-containing e-liquid

South Korea
The first country to impose a national vape tax was the Republic of Korea (ROK, usually called South Korea in the West)—in 2011, the same year Minnesota began taxing e-liquid. Currently the country has four separate taxes on e-liquid, each earmarked for a specific spending purpose (the National Health Promotion Fund is one). (This is similar to the United States, where the federal cigarette tax was originally earmarked to pay for the Children’s Health Insurance Program). The various South Korean e-liquid taxes add up to a whopping 1,799 won ($1.60 US) per milliliter, and there is also a waste tax on disposable cartridges and pods of 24.2 won ($0.02 US) per 20 cartridges

Sweden
A 2 Swedish krona (SEK) per milliliter ($0.22 US) tax on nicotine-containing e-liquid up to 15 mg/mL. E-liquid containing 15-20 mg/mL is taxed at 4 SEK/mL

Togo
Taxed up to 45% (believed to be based on the wholesale price)

Ukraine
A 3 Ukrainian hryvnia (UAH) ($0.11 US) tax per milliliter tax on all e-liquid

United Arab Emirates (UAE)
The tax is 100% of the pre-tax price on e-liquid and devices. That equates to 50% of the retail price

Uzbekistan
Global Tobacco Control says an excise tax of 500 Uzbekistani so’m per milliliter ($0.05 US) was introduced on e-liquid in 2020, but we could find no confirmation or additional details.