(Commonwealth_ Europe) Malta’s vaping market is set to face significant price increases following the introduction of new excise duties in the country’s 2025 budget. According to financial estimates outlined in the Budget Measures Implementation Bill, which MPs are expected to pass to formalize the fiscal measures, refill cartridges and other vaping products will see price hikes of at least €1.30.
The excise tax, which will be levied on nicotine-containing and nicotine-free e-liquid cartridges, is expected to increase the cost by €0.13 per milliliter of e-liquid. For example, a 10 ml starter cartridge, which currently retails at approximately €4.99, will increase by around €1.30, representing a substantial 26% price increase.
This marks the first time Malta will impose an excise duty on vaping products, which have surged in popularity recently. The introduction of this new tax is part of broader government efforts to regulate the sector and potentially address public health concerns linked to the rising use of electronic cigarettes. Despite the higher taxes, the government’s revenue projections for the first year are modest. The Treasury estimates that the new excise duties on vaping products will generate €500,000 in its inaugural year. This figure is a stark contrast to the millions of euros in excise revenue generated by traditional tobacco products, including machine-made cigarettes and rolling tobacco.
Excise duties on tobacco products have been a significant source of government revenue for many years, with duties on cigarettes remaining largely unchanged over the past decade. In 2023, tobacco excise duty revenue amounted to over €92 million, an increase from €80 million in 2015. While there was a notable dip in tobacco tax revenue during the COVID-19 pandemic, largely due to a reduction in tourism and the shutdown of businesses, there has been a steady recovery in recent years.
In addition to traditional cigarette sales, rolling tobacco has gained considerable market share in Malta. Between 2019 and 2023, duties on rolling tobacco increased by 60%, from €4 million to €6.5 million; in 2023, rolling tobacco duties exceeded €7.8 million. This trend is part of a broader shift in consumer behavior, with many smokers opting for cheaper alternatives to pre-rolled cigarettes. The rise of rolling tobacco, particularly among younger smokers, has been a growing concern for public health authorities, especially given the lower price points and the growing presence of flavored tobacco products.
The trend toward lower-cost tobacco products is not unique to Malta. Across Europe, the popularity of roll-your-own (RYO) tobacco has been steadily increasing. Between 2000 and 2015, RYO tobacco sales in Europe rose from 53,000 tons to 82,000 tons. Today, Europe remains home to nine of the largest RYO markets globally, with the United Kingdom being one of the leading consumers. In 2019, smoking prevalence in the UK was 14.1%, according to the International Tobacco Control Project, with RYO tobacco playing a significant role in this market.
Similarly, the use of e-cigarettes and disposable vapes has surged in popularity across Europe and beyond. In Malta, the growing availability of disposable vapes, which make up the majority of local vaping sales, has been a key driver of this increase. These products are often marketed in a range of flavors, including ‘pink lemonade,’ ‘bubble gum,’ and ‘watermelon ice,’ which critics argue may appeal to younger audiences. The ease of use, coupled with attractive flavors, has made disposable vapes particularly popular among teenagers and young adults, raising concerns about the long-term health implications of widespread vaping among this demographic.
While many view e-cigarettes as a less harmful alternative to traditional smoking, the health risks of vaping remain a subject of ongoing debate. While vaping is generally considered to pose fewer health risks than smoking combustible tobacco, the long-term effects of inhaling e-cigarette vapor are not yet fully understood. Concerns persist about the potential for nicotine addiction, respiratory issues, and the presence of harmful chemicals in e-liquids, particularly those used in disposable vapes.
The rise in youth vaping has prompted calls for stricter regulation of the sector. In Malta, as in other countries, lawmakers have been grappling with how to strike a balance between fostering a viable market for alternative nicotine products and protecting public health, particularly among young people. The introduction of the excise duty on vaping products is one of several measures aimed at curbing the widespread use of e-cigarettes and reducing the appeal of flavored products among teenagers.
In addition to the excise tax, there are ongoing discussions regarding the potential for more stringent age verification measures, advertising restrictions, and the regulation of e-cigarette flavors to limit their attractiveness to young users. In the coming years, the Maltese government may explore further regulatory actions as part of its public health strategy to tackle smoking and vaping among youth.
As vaping continues to grow in popularity, the Maltese government’s decision to introduce excise duties on e-cigarette products represents a significant shift in tobacco and nicotine regulation. While the initial revenue from these duties is expected to be relatively modest, the move underscores the growing importance of the vaping sector in the country’s wider tobacco control efforts. Whether the tax will have a significant impact on consumption patterns or merely serve as a revenue-generating measure remains to be seen. However, with rising public health concerns about youth vaping, the debate around e-cigarette regulation in Malta is likely to continue for the foreseeable future.
