Netherlands: A national tax on vaping is being prepared

The Dutch government is preparing a bill to introduce an excise tax on vaping products, effective January 1, 2029. The stated objective is to make vaping roughly as expensive as smoking tobacco, thereby discouraging young people from starting. Led by State Secretary for Finance Eelco Eerenberg, this national initiative is a response to the deadlock within the Council of the European Union regarding the revision of the Tobacco Products Tax Directive, which aims to extend minimum taxation to vaping products. The government has pledged to withdraw its proposal as soon as a European regulation is adopted. However, it acknowledges that a national tax could be partially circumvented through cross-border and online purchases. This limitation argues for stricter control of retail distribution, while opponents of the measure are already raising concerns about the potential for a parallel market.

The proposal targets e-cigarettes and e-liquid refills. The tax rate, which has not yet been set, is intended to align the cost of vaping with that of smoking tobacco. The bill is expected to be introduced in the Dutch House of Representatives (Tweede Kamer) in early 2027.[1]-[2].

Protecting young people without waiting for a European agreement

«"The health of our children cannot wait for Brussels. As a precaution, we are therefore also introducing national legislation.", Eelco Eerenberg stated. The idea of a national excise tax on vaping had already been raised by the Dutch government in December 2024. Vaping has become widespread among young Dutch people. According to the Trimbos Institute, 10.3% of 12- to 25-year-olds used an e-cigarette at least once a month in 2023, and 13.3% of 15- to 17-year-olds. Among these regular young vapers, 69.1% also smoked cigarettes every month.[3]. Among adults, regular use affected 2.4% of the population in 2025, but 8.1% of 18-24 year olds.[4].

The tax would complement already strict regulations. The Netherlands has banned flavored e-liquids other than tobacco since January 1, 2024. However, flavored e-liquids remain very popular: in 2025, 85% of 12- to 25-year-olds reported vaping flavored products every month. According to the Trimbos Institute, it is precisely fruit and candy flavors that appeal to young people.

A European decision remains blocked.

On 16 July 2025, the European Commission presented its proposal to revise the Tobacco Products Tax Directive, whose minimum rates had not been updated since 2010. The Commission notes that price differences between Member States, ranging from €2.57 to €11.37 for a pack of cigarettes, encourage cross-border shopping.[5].

The Commission's text plans to extend taxation with a minimum levy to electronic cigarettes, heated tobacco and nicotine pouches, with thresholds adjusted to the general price level of each Member State.

The Netherlands supports this revision. In December 2024, they were among the sixteen member states that signed a declaration in favor of extending the directive to vaping products.[6]. Since taxation requires unanimous agreement within the Council, the matter was nevertheless removed from the agenda of the Ecofin Council meeting of June 12, 2026, due to a lack of agreement, and no new timetable has been set.[7]. This deadlock explains why some states choose to act alone. Eelco Eerenberg acknowledges that vaping products can be "bought online and across the border," making the Dutch excise tax "relatively easy to avoid." A uniform common rule would reduce these price differences between neighboring countries, although taxation falls under the jurisdiction of member states and the tax rates applied can vary considerably.

The illicit market, a recurring argument against public health measures

Vaping industry stakeholders argue that the tax would drive consumers to unregulated markets. This argument, long used by the tobacco industry against taxation, was previously raised by the trade association Esigbond with Dutch policymakers when they adopted the ban on flavored e-liquids. The existence of illegal products led the Dutch consumer protection agency (NVWA) to seize 189,000 flavored vaping products in June 2026.[8] in order to properly implement the measure, but certainly not to abandon it.

The World Health Organization explicitly recommends these two measures: taxing vaping products and banning flavors.

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[1] NL Times, «Dutch government prepares vape tax; EU-wide measure remains pending », October 2, 2026, accessed October 6, 2026.

[2] Gezonder Meer, «Cabinet bereidt accijns op vapes voor per 2029», October 5, 2026, accessed October 6, 2026.

[3] Trimbos-instituut, Jongerenmonitor Tabaks- en nicotineproducten, data sheet 2023, accessed on October 6, 2026.

[4] Trimbos-instituut, «"E-cigarette for vaping"», Accessed October 6, 2026

[5] European Commission, «Revision of the Tobacco Taxation Directive (proposal)», Accessed October 6, 2026

[6] Dutch government, «Statement herziene richtlijn tabaksaccijns», December 9, 2024, accessed October 6, 2026

[7] Eunews, «EU hits an impasse on tobacco taxation. Again », June 4, 2026, accessed October 6, 2026.

[8] NVWA, «NVWA neemt 189,000 illegale vapes in Belgium», June 3, 2026, accessed October 6, 2026.

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