Minister Donohoe signs commencement order for the E-liquid Products Tax
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The Minister for Finance, Paschal Donohoe, has signed the commencement order to operationalise the E-liquid Products Tax (EPT), as legislated for in Chapter 1 of Part 2 of the Finance Act 2024. The new excise duty will apply from 1 November 2025. The introduction of EPT underlines Ireland’s ongoing commitment to safeguarding public health and tackling the increasing consumption of vapes and related products, particularly among young people.
Under the new law, EPT will apply to both nicotine-containing and non-nicotine-containing e-liquid products at a single flat rate of 50 cent per millilitre of e-liquid. The taxing point for EPT will be the first supply of e-liquid product in the State and the tax will follow Revenue’s standard model of self-assessment. Suppliers of e-liquid product will be required to register with Revenue in advance of making a first supply of e-liquid products in the State. Suppliers will also be liable to account for and pay the tax.
The taxation of new and novel products, including e-liquids, is currently being addressed at EU level through a revision of the Tobacco Tax Directive (2011/64/EU). While the intention to harmonise the taxation of such products is welcomed, in the interim, Ireland and a significant number of other Member States have moved to introduce domestic taxes on e-cigarette products in the interest of public health.
Commenting on this matter, Minister Donohoe said:
“I am pleased to announce the commencement of the E-Liquid Products Tax, which will take effect from 1 November 2025. This measure will help to address the public health concerns created by the rising prevalence of vapes and related products on the Irish market and their increasing usage amongst young people. It also supports Ireland’s broader public health strategy.
I welcome the recently proposed recast of the Tobacco Tax Directive and the intention to include novel products, such as e-liquids, in the scope of the Directive. Harmonising definitions and tax treatment of novel products will help to ensure legal certainty and regulatory alignment across Member States, supporting the proper functioning of the internal market.
Ireland has been consistent in its tobacco control measures and it is important that such consistency extends to new substitute products, such as e-liquids, which are shown to be detrimental to public health.”
The Minister for Health, Jennifer Carroll MacNeill said:
"I welcome the news that the commencement of the E-liquid Products Tax is imminent. We do not know the long-term harms of vaping products and most contain nicotine which is highly addictive. Protecting children and young people from these products is a priority for this Government and this measure will strengthen the work already underway in my Department. Alongside forthcoming legislation to restrict packaging and appearance, flavours, retail advertising and display for nicotine inhaling products and a ban on all single-use vapes, this tax further supports efforts to reduce the appeal and accessibility of vapes to young people."
Minister of State with responsibility for Public Health, Wellbeing and the National Drugs Strategy, Jennifer Murnane O'Connor added:
"As Minister with responsibility for Public Health and Wellbeing, I welcome the introduction of the E-liquid Products Tax. The rise of vaping among our young people in recent years has been worrying. We know that children and young people are particularly attracted to these products, and their low price makes them even more accessible. There are vapes being sold for as little as €2; this tax will help ensure that these products are no longer available at pocket money prices."
Notes
Legislation providing for the introduction of a new national excise duty to e-cigarettes, known as E-Liquid Products Tax (EPT), was included in Chapter 1 of Part 2 of Finance Act 2024. Essentially, e-liquid products are liquids used in e-cigarettes, including refill cartridges for refillable devices.
EPT was made subject to commencement by Ministerial Order to enable Revenue to make all necessary preparations for the introduction of the tax. These include the development of secure and functional IT systems, registration processes, compliance checks and operational supports to ensure the tax is collected efficiently and fairly.
Revenue will issue detailed information for suppliers about when and how to complete their registration and subsequently meet their obligations regarding filing and payment next week.
On 16 July 2025, the EU Commission officially adopted a proposal for a recast of the Tobacco Tax Directive (TTD). Among other provisions, the revised TTD proposes to introduce harmonised taxation policies for new products, such as e-liquids, and bring these products into the scope of the EU Excise Movement and Control System (EMCS). Establishing harmonised definitions, tax treatment and movement and control requirements will close any regulatory gaps across Member States (MS) and address the market fragmentation that currently exists due to MS adopting differing national tax regimes in relation to e-liquid products. Ireland looks forward to contributing constructively to negotiations on the revised Directive.