German tax blunder makes e-cigarette liquids temporarily tax-free

An administrative slip at the finance ministry led to the premature publication of a tobacco tax reform, resulting in e-cigarette liquids becoming tax-free from today onward. The law, which was supposed to raise cigarette prices gradually, was released a day early in the official gazette, causing the new tax rates to apply immediately. Consequently, the €3.20 levy per 10 ml of liquid is suspended until the end of the year, and cigarette packs will cost more than previously anticipated.

Manufacturers have also been told they may not produce new products under the new regulations. Legal commentators argue that the finance minister cannot override the parliament’s decision with an administrative order, and only the Bundestag can amend the law when it reconvenes in early November.