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On 17 December 2021, Switzerland’s Federal Council put forward a plan to tax the liquids used for e-cigarettes, reported RTS.
The Federal Council is proposing a tax similar to the tax on tobacco but at a lower rate in line with e-cigarettes’ lower toxicity. The government does not want to discourage tobacco smokers from transitioning to e-cigarettes and proposes a rate 77% lower than the tax on tobacco cigarettes.
The aim is to discourage young people from developing an unhealthy e-cigarette habit, said the government.
One idea is to tax the nicotine content in e-cigarette liquids for open systems. This would mean taxes rising with rising nicotine content. For single use e-cigarettes or devices using cartridges the tax would be levied based on the quantity of liquid contained in them regardless of the nicotine contained in them.
According to the government, such a tax would be easy to put in place and would generate around CHF 15.5 million a year, money which would be used to help fund old age pensions and disability benefits.
The Federal Council’s proposal, which will be discussed until 31 March 2022, responds to a motion approved by the parliament and the Council of States in March.
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