Ireland is expected to increase the tax on vaping products in Budget 2027 after the levy generated more than €22 million in revenue during its first months in operation.
The e-liquid products tax (EPT), introduced under the Finance Act 2024, came into effect on November 1, 2024. The current rate is €500 per litre of e-liquid, equivalent to €1 on a standard 2ml vape product.
The tax is collected by the Revenue Commissioners from businesses that first place e-liquid products on the Irish market, primarily importers and manufacturers. The first-supply model was adopted as the most practical approach due to the large number of vape retailers operating nationwide. Some wholesalers that also import vaping products are liable for the tax.
The expected increase is likely to form part of Budget 2027, which Minister for Finance Simon Harris is due to deliver on October 6.
Vaping devices heat a liquid containing nicotine and flavourings to create an inhalable aerosol, offering an alternative to traditional tobacco products without burning tobacco.
The proposed tax increase comes as the Government continues efforts to tighten regulation of the vaping industry, particularly in response to growing concerns over the popularity of vaping among children and teenagers.
Earlier this year, the Oireachtas passed the Public Health (Single-Use Vapes) Act, legislation aimed at reducing the availability of disposable vaping products. The Act has since been signed into law by President Catherine Connolly and will prohibit the sale of single-use disposable vapes in Ireland once commenced.
The combination of higher taxation and tighter regulation reflects the Government's broader public health strategy to discourage youth vaping while increasing oversight of the rapidly expanding e-cigarette market.
