'Challenging' to introduce tax on vapes, says Michael McGrath 

Other EU countries have been successful in implementing taxes on e-cigarettes.

Introducing a new tax on vapes will be “challenging” to implement, Finance Minister Michael McGrath has said.

The Government intends to apply the levy on e-cigarettes as part of a public health response to vaping.

“A domestic tax will require significant IT, administrative, control, and compliance costs,” Mr McGrath said.

“While the implementation environment is challenging, it does not undermine the intention to apply a tax as one tool in the overall public health policy approach to e-cigarettes,” the finance minister said in response to a parliamentary question from Fianna Fáil TD Paul McAuliffe.

The proposed tax on both vapes and e-cigarettes had first been flagged in Budget 2024 speeches when Mr McGrath cited the ongoing delays to EU directives on tobacco products.

“Most excise taxes in Ireland are governed by EU legislation and this helps to reduce compliance and administrative costs,” Mr McGrath said.

“As e-cigarettes are not harmonised excisable products, the Revenue Commissioners will be unable to use existing movement controls and tax warehousing for tax collection purposes.”

Mr McGrath confirmed that the e-liquid within vapes will be the primary component that is levied.

Other countries successful

Director of advocacy of the Irish Heart Foundation, Chris Macey, said that many other EU countries have been successful in implementing taxes on e-cigarettes.

“So it’s clear that the challenges to their implementation can absolutely be overcome and should not lead to any delay that will put the future health of our children at unnecessary risk,” Mr Macey said.

Mr Macey also cited the recent Healthy Ireland survey, which found that almost one in five young people aged between 15 and 24 regularly use e-cigarettes (18%).

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“This is absolutely shocking and given that children and young people are particularly price sensitive, taxes are a crucial element of the package of measures needed to tackle the explosion in vaping among them,” Mr Macey said.

Mr McGrath added that there would be a “whole of government approach” taken to dealing with e-cigarettes and vapes, citing policies being developed by both the Department of Health and the Department of the Environment.

This includes a potential ban on the sale of single-use, disposable vapes, with Tánaiste Micheál Martin previously saying he would like to see Ireland follow Australia’s lead.