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The Council of States accepted the amendment to the Tobacco Tax Act in the general vote by 40 yes votes to one no vote. Then the National Council should deal with it.
The approval of the small room came as no surprise. The proposal goes back to a motion from the responsible committee of the Council of States. According to its own statement, the Federal Council wants to take into account the lower harmful potential of e-cigarettes with its design. The tax should be correspondingly lower than for classic tobacco cigarettes.
Specifically, the tax rate for reusable e-cigarettes should be twenty cents per milliliter of nicotine-containing liquid. For single-use e-cigarettes, the proposed tax rate is one franc per milliliter of liquid – regardless of nicotine content.
E-cigarettes popular among young people
The proposal received broad support in the Council. However, Carlo Sommaruga (SP/GE) criticized the proposed tax rate as too low. The health risks of vaping are still unclear. The tobacco lobby ruled here.
The consumption of e-cigarettes in Switzerland is growing explosively, warned Hans Stöckli (SP/BE). Certain products are especially popular with young people.
Finance Minister Karin Keller-Sutter defended the planned tax rates. She referred to the situation in other European countries. Higher taxes lead to shopping tourism.
Until 2012, e-cigarettes were taxed in Switzerland. However, in 2011 both councils accepted a motion from the Solothurn SP Council of States Roberto Zanetti for a tax exemption. Since April 2012, taxes are no longer levied. Zanetti admitted a mistake on Wednesday. His assessment at the time that e-cigarettes would help you quit smoking was wrong.
Eleven centimeters per milliliter
The Council of States had to decide on a number of amendments. A bourgeois minority on the Council of States’ Committee on Social Security and Health (SGK-S) wanted a tax rate of just 11 centimes instead of 20 centimes per milliliter for refillable e-cigarettes.
Even in the absence of long-term studies, health experts confirmed that e-cigarettes are up to 95 percent less harmful than tobacco cigarettes, said Hannes Germann (SVP/SH). The Council should take this into account. The amount of twenty centimes was determined arbitrarily.
In contrast, a left-wing minority on the committee wanted to change the tax base for taxing chewing tobacco, snuff and heated tobacco products. Philip Morris’ product Iqos falls into the latter category.
Sommaruga argued on behalf of his minority that today there is a tax advantage over traditional cigarettes. This is not justified. According to Keller-Sutter, the result of passing the minority motion would have been about five times higher taxes.
Tobacco Prevention Fund
In a second request, the Commission’s left-wing minority wanted manufacturers of the said tobacco and nicotine products to also contribute to the Tobacco Prevention Fund. By voting for the popular initiative “Children without tobacco”, voters have clearly shown that they want to strengthen prevention, Stöckli campaigned for the cause. None of the amendments ultimately found a majority in the Council.
The tax rates for reusable e-cigarettes have been deliberately kept low, the Bundesrat wrote in October in its communication to the House of Representatives.
Smokers who want to quit should not be discouraged from using e-cigarettes as a possible way to quit. On the other hand, the higher tax on single-use e-cigarettes should have an effect, especially when it comes to protecting minors.
The Bundesrat expects the new tax to generate an additional income of approximately CHF 13.8 million annually. The money is intended for the co-financing of AHV and IV.
(SDA)
Source:Blick
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