EU vaping crackdown, Anafe sounds the alarm: the industry risks collapse
According to Anafe, the revision of the EU Ted and Tpd directives proposed by Brussels could wipe out state revenues and suffocate the market. Instead, it is necessary to fight the 'digital Wild West' of irregular online sales
by Pietro Menzani
The incoming squeeze from Brussels on electronic cigarettes risks causing "the structural collapse of a national sector that today is worth one billion euro and provides 50,000 jobs". Launching the alarm is Anafe Confindustria, the National Association of Electronic Cigarette Manufacturers.
At the heart of the association's warning is the EU Council's proposal on the revision of the Ted (Tobacco excise directive) and Tpd (Tobacco products directive), the EU regulations that regulate the tobacco products market and set minimum levels of taxation within the EU territory.
The Ted Directive
According to the president of Anafe Confindustria Umberto Roccatti, the upcoming reform of the Ted - the directive that sets the minimum rates of excise duty that Member States must apply on tobacco - could result in increases that are 'completely unsustainable for businesses and consumers'. Indeed, the association estimates that the squeeze could result in an increase of more than 100 per cent for products containing nicotine and around 200 per cent for those without.
A revision such as the one proposed by the EU Council,' Roccatti explains, 'would have the effect of suffocating the market by introducing excessively high taxes and wiping out state revenues. The precedent that worries Anafe dates back to 2014, when, according to the association's reconstruction, the introduction of a disproportionate tax led the State to collect only three million euro instead of the 107 million budgeted.
The result on that occasion was the collapse of the legal supply chain 'with the closure of 5,000 small businesses'. Because of this, smuggling became endemic in the sector and Roccatti explains that only four years later, in 2018, the situation returned to equilibrium 'thanks to gradual single-digit increases'.

