Diplomatically making the case for an appropriate taxation and excise regime that works for those operating on all sides of its imposition has been a key mission of the Independent British Vape Trade Association since its founding . The IBVTA summed up the situation concisely in a February 2017 press release :
“ IF REGULATORS , WORKING WITH RESPONSIBLE VAPE PRODUCT COMPANIES , DEVELOP THE APPROPRIATE ROBUST AND PROPORTIONATE REGULATORY AND TAXATION REGIME THEN VAPE PRODUCTS CAN FLOURISH AND TRULY FULFIL THEIR POTENTIAL IN PROVIDING A VIABLE AND SIGNIFICANTLY LESS HARMFUL ALTERNATIVE TO TOBACCO PRODUCTS . HOWEVER , IF REGULATORS AND TAX AUTHORITIES INTRODUCE INAPPROPRIATE AND DISPROPORTIONATE REGULATORY AND FISCAL REGIMES THEN SMOKERS WILL NOT MAKE THE SWITCH AND A ONCE IN A LIFE TIME OPPORTUNITY WILL HAVE BEEN MISSED .”
CEO Richard Hyslop gave a series of speeches and talks on the issue of excise around the country in 2017 ; presenting his expertise at the IBVTA launch conference in April , as well as addressing the E-Cigarette Summit and Next Generation Nicotine Delivery later that year . In 2018 , things remain complicated . Fraser Cropper , Managing Director of Totally Wicked Ltd and IBVTA Chairman , spoke with us about this polarising issue , and the many interconnected matters it covers .
“ There has been no single event that galvanised our focus on taxation ,” he says . “ But the closest thing has been what we saw unfold in the Italian vape industry in 2013-2014 . What was still a very young , emerging vape market was hit with highly punitive taxation which effectively killed it , devastating jobs , having an adverse effect on the sector , undercutting public health progress and not even producing the revenue it needed .” It was later rescinded , and has gone down as a cautionary tale . Spain and Portugal ’ s decisions to apply a € 6 / per 10ml bottle tax have been met with similar disdain and stand as examples of how not to toe this thin line .
BUT WHAT ABOUT THE SITUATION AT HOME ?
“ There are few businesses in the UK that aren ’ t aware of how bad a poor tax model could be . The IBVTA have been doing our best on the international stage to plead our case for an appropriate excise framework with Europe ’ s various Directors-General . The problem in making that progress at home is that the UK government doesn ’ t have a formal , official opinion on how it feels about e-cigarettes . There ’ s no ‘ white paper ’ and concrete law on vaping as distinct products , so to speak .”
Britain ’ s own direction remains unclear , considering the difficulty predicting how our relationship with the EU will change , particularly the Single Market and Customs Union . Despite the stalling , what can the concerned consumer or smaller business owner do in the meantime to ensure they can effectively join the fight against an unrepresentative or unworkable taxation for vapour products ?
“ Joining a trade body is your best hope . Governments listen to them and engage with them . On a smaller level , you can always write to your local MP ; let them know how much vaping has changed your life and helped you , helped your finances and improved your health . Individuals and organisations like trade bodies have different responsibilities in shaping the future of the vape trade and can accomplish different things .”
Dialogue with the government seems to be taking some effect , as seen through the recent meeting between the Science and Technology Committee and a panel of vaping experts .
“ The meeting of the was a move towards political cohesion . We ’ re hoping to give testimony at the next one .” ( See our news section for the full story ).
Getting a clear tax plan is one thing , making it stick is quite another .
“ The IBVTA are also hoping for a bipartisan position on taxation of vapour products , one which would hold firm no matter who ran the country , preventing us from having to worry about a new system with each change of the government .”
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