Heated tobacco pays less tax than regular cigarettes but costs the same |Tobacco |PUBLIC

2022-05-28 06:49:28 By : Ms. Cayla Liang

Heated tobacco is taxed in the same way as rolling tobacco.Divided, deputies discussed this Wednesday whether or not iQOS should be equated with conventional tobacco.Heated (non-combusted) tobacco was fiscally equated with roll-your-own tobacco in 2015. A pack of heated Marlboro (iQOS) earns the State 2.11 euros, while a conventional Marlboro pays 3.57 euros in taxes.In practice, there are 1.46 euros less for each pack sold entering the state coffers.But the two cost almost the same to the consumer - the difference is only 20 cents.Portugal was one of the first countries where iQOS (I quit ordinary smoking), by Philip Morris International (of which Tabaqueira is a subsidiary in our country) began to be sold.The launch was discreet, it started in a kind of club in Lisbon, but today heated tobacco is already on sale in many tobacconists and gas stations.It works with a device that costs 70 euros and serves as a charger for a pen where you stick heatsticks, mini cigarettes that are sold in Marlboro packs of 20 units and cost 4.70 euros, 20 cents less than a classic Marlboro but exactly the same price as the smaller version (4.70).As it is heated and does not reach combustion, iQOS is presented by the multinational as a reduced risk product, but health authorities warn that there are still no independent scientific studies to prove it.The maintenance of the high price in the face of much lower taxation is justified by an official source from Tabaqueira with the “high investment in the development and start of commercialization” of the product and the need to respond “to public health concerns about the eventuality” of the product being sold. iQOS can become “a 'gateway' for new consumers”.Furthermore, he adds, “a more favorable tax treatment for heated tobacco products compared to conventional cigarettes” is “the rule in most European Union Member States”.He also notes that this also happens in other segments, such as the rolling tobacco, which, he stresses, is more harmful because it is combustible and, even so, pays about half of the tax.What is certain is that the declared objective of Philip Morris - the CEO of the multinational has already given an interview to the BBC saying the same - is to transfer smokers to this type of product.If the transfer takes place as projected, tobacco tax revenue will thus fall substantially in the future.But, if prices are maintained, the industry will continue to invoice the same.“I want to believe that the Secretary of State for Finance has not yet noticed that he has a great source of income here.This is a question of equality and tax equity”, criticizes João Pedro Lopes, responsible for institutional affairs at Imperial Tobacco, which sells brands such as John Player Special in Portugal and says he does not understand this differentiated taxation.The competitor of Philip Morris International does not have heated tobacco in its portfolio and João Pedro Lopes admits that he is looking with concern at the discussion that is currently taking place in Parliament - where a working group has been studying the government's proposal to revise the law for months and in the Wednesday will discuss amendments to this proposal.One of the central issues is precisely that of equating iQOS with conventional cigarettes, banning their use in closed public places.“There cannot be first and second-class products”, defends João Pedro Lopes.Returning to the question of taxes, it was with the State Budget (OE) law of 2015 that all smoking tobacco (with the exception of cigarettes, cigars and cigarillos and tobacco for water pipes) began to be taxed in the same way. snuff, chewing tobacco and heated tobacco, explains the source from Tabaqueira.It was at this time that the taxation of chewing tobacco, heated tobacco and the nicotine-containing liquid used in electronic cigarettes was introduced.This tax extension “is justified for reasons of public health protection, as well as fiscal equity”, reads the 2015 OE report.Questioned by the PUBLIC, the Ministry of Finance (MF) explained, in writing, that heated tobacco is taxed “under the terms of the Special Consumption Tax Code (Article 104 - A)”, added by the State Budget law. 2015. The legislator opted for its inclusion “in a residual category, which also covers fine-cut tobacco intended for rolling cigarettes and other smoking tobacco, snuff and chewing tobacco”, he notes.Because?Because the European directive on the structure and rates of excise duties on manufactured tobacco (2011) “would not allow classifying this type of product as “cigarettes” for taxation purposes”.“Since then this framework has not been modified, and it may be so in the future”, since this directive is “under review”, adds the MF.In November, a change made taxation more complex.On a proposal from the PS, Parliament approved the halving of taxation for liquid with nicotine in electronic cigarettes.Equating liquids with tobacco “fails not only because of the absence of tobacco but also because of the effects on public health”, they claimed.“It is scientifically proven that electronic cigarettes are much less harmful to the health of smokers and non-smokers than traditional cigarettes, since the cause of death for smokers is tobacco and not nicotine”, they justified.E-cigarettes with nicotine are currently, for the purposes of the tobacco law, equivalent to traditional cigarettes and cannot be used in closed public spaces.Read the articles you want, until the end, without advertisingBe part of the most informed community in the countryBe the first to comment.Choose one of the following topics to create a group on the Public Forum.When you create a new discussion group, you will become an administrator and will be responsible for moderating that group.PÚBLICO journalists can always intervene.Learn more about the Public Forum.By activating this option, you will receive an email whenever new posts are made in this discussion group.@ 2022 PÚBLICO Comunicação Social SATo allow notifications, follow the instructions:These are the authors and topics you chose to follow.You can enable or disable notifications.Receive notifications when we publish a text by this author or on the topics of this article.These are the authors and topics you chose to follow.You can enable or disable notifications.To allow notifications, follow the instructions: