The Irish Ministry of Finance recently announced that starting November 1, 2025, a €0.50 per milliliter excise tax will be imposed on all E-liquids. This rate will set the highest E-liquid tax within the European Union. According to government documents and tax authorities, the new measure will apply to all types of E-liquids, regardless of whether they contain nicotine.
The government also plans to pass legislation to further restrict vape juice flavors, packaging, and advertising, as well as ban disposable vapes. The relevant bill is expected to be presented to the parliament for review by the end of the year. In a statement, Minister of Health Jennifer Carroll MacNeill noted that the new tax and legislative restrictions would work together to “prevent youth from accessing and using vape products” and described the move as “a crucial step in protecting the health of the next generation.”
"Tobacco-Free Ireland" Plan: Smoking Rate Target Difficult to Achieve
As early as 2013, the Irish government launched the Tobacco-Free Ireland initiative to reduce the national smoking rate to below 5% by 2025. However, the latest data from the Department of Health shows that the current smoking rate remains around 18%, unchanged from 2019, making the original target nearly impossible to reach within the specified timeline.
Experts believe that the smoking rate had significantly declined between 2016 and 2019 due to the increased use of vaping products. However, the 2019 EVALI outbreak (e-cigarette or vaping product use-associated lung injury) in the U.S. sparked a global backlash against the safety of vape products, which hindered progress in smoking cessation in Ireland.
Impact of E-liquid Tax on the Market
Regarding the new tax, Damian Sweeney, a member of the New Nicotine Alliance Ireland (NNAI), stated that this measure is “a complete step backward.” He pointed out that vape products were originally a vital tool for helping smokers quit traditional cigarettes, but the new high tax would undermine this benefit.
According to NNAI’s estimates, a 10ml bottle of vape juice, which is currently priced around €3, could rise to around €9 once the new tax is implemented. Sweeney believes such price hikes will “directly fuel the expansion of the black market” and may even cause some users to return to smoking traditional cigarettes.
Similarly, Garrett McGovern, a clinical addiction specialist, criticized the decision, noting that imposing a similar tax rate on vaping products and traditional cigarettes would send the wrong message to the public by blurring the distinction in harm between the two. “Although vape products are still cheaper than traditional cigarettes, the narrowing price gap is particularly detrimental to low-income groups,” McGovern stated.
Ireland's Vape Policy: Youth Protection at Its Core
The government emphasized that the purpose of the tax is not to target vape users but rather to reduce minors' access to these products.
Minister McNeill stated that the tax, along with restrictions on vape flavors and packaging, would “significantly reduce the appeal of vape products to young people” while helping regulate the sale of vape products in the still unregulated market.
In December 2023, Ireland officially banned the sale of vape products to anyone under the age of 18. Under the new rules, retailers must obtain a license and comply with stringent sales and labeling requirements.
Additionally, the Public Health (Tobacco) (Amendment) Bill 2024 raises the legal age for purchasing tobacco products to 21. The bill was approved by the Irish Senate on November 7 and is awaiting the President's signature. It is set to take effect on February 1, 2028. This makes Ireland the first EU country to raise the legal age for purchasing tobacco to 21.
Direct Impact of E-liquid and Cigarette Taxes on Consumers
From the consumer perspective, E-liquid prices are expected to rise significantly, particularly for the commonly sold 10 ml and 30 ml sizes.
Market analysis suggests that the price increase will have the following chain reactions:
• Increased costs for long-term users: For those using 2 ml daily, the tax will add over €30 to their monthly expenses.
• Low-cost products will exit the mainstream market, and the availability of imported brands and disposable vape products may decrease.
• Some consumers might return to smoking traditional cigarettes if the price gap between vape products and traditional cigarettes further narrows.
• Cross-border and black market risks will rise, as users may turn to online shopping from countries with no tax or seek out non-regulated channels.
• Currently, the vape industry association and some retailers are calling on the government to reassess the tax rate before implementation and to collaborate with public health experts to assess its impact on smoking cessation policies.
It is also worth noting that the Irish government has simultaneously raised the tax on traditional cigarettes, increasing the price of a pack by €0.50, with the most common brand now costing around €18.55.
While the government emphasizes that this is a necessary measure to “curb smoking,” some public health experts argue that the high taxes could disproportionately burden low-income groups, contradicting the original health policy goals.
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