Luxembourg is set to implement a new taxation system targeting e-cigarettes and nicotine pouches, with a tax rate of €120 per litre on e-liquids for electronic cigarettes and a rate of €22 per kilo for nicotine pouches.

Minister of Finance Gilles Roth first made this announcement during the presentation of the 2024 draft budget to the Chamber of Deputies on 6 March.

The forthcoming taxation, slated to come into effect on 1 October 2024, is part of a Grand Ducal regulation currently in the process of being drafted. Under this regulation, e-liquids will be taxed at €120 per litre, while nicotine pouches will incur a tax of €22 per kilo.

Similar taxes are already in place in neighbouring countries, albeit at higher rates than those proposed in Luxembourg.

These developments were disclosed by Minister of Health Martine Deprez and Minister of Finance Gilles Roth in response to a parliamentary question by MP Sven Clement of the Pirate Party. Clement's enquiry centred on the consumption patterns of tobacco and related products in Luxembourg, particularly focusing on emerging products such as disposable vapes and snus-like products such as nicotine pouches.

In addition to taxation, Minister Deprez highlighted the inclusion of new-generation tobacco products within the scope of the country's new national anti-smoking programme.