BAT Ireland urges urgent action on vape tax
BAT warns illicit vapes will surge without urgent tax rollout, strong enforcement, and tighter controls to protect consumers and retailers
Print31 July 2025
BAT Ireland has warned that Ireland’s illicit vape trade, which according to KPMG estimates accounts for up to 40% of Ireland’s €550 million vape market, will continue to thrive unless the excise tax on vapes is introduced in the coming months and accompanied by strong enforcement measures.
The KPMG estimate was disclosed in the Tax Strategy Group papers published on Thursday.
Excise on vapes was expected to be introduced in mid-2025.
Timeline
The timeline for the tax has been significantly extended due to the complexities faced by Revenue in setting up the system, and no date has been provided for when vape excise will be implemented.
BAT Ireland believes that the tax, alongside the upcoming retail licensing measures, will significantly improve market monitoring and controls, curb the illicit trade, protect consumers, and support responsible retailers if properly enforced.
“BAT Ireland fully supports the timely rollout of this new excise tax, but it must be matched with clear and credible enforcement measures,” said David Melinn, country manager, BAT Ireland.
“If implemented properly, the tax can help deliver on public policy goals, but without strong enforcement, there’s a real risk it could unintentionally further fuel criminal trade.”
“In excess of one in every three vapes sold in this country is illegal according to KPMG estimates. The vape tax will help to bring the market under the control of Revenue, but without proper enforcement, this figure will likely increase further.”
Until retail licensing or the vape tax is introduced, the Government has no way to tell which shops sell vapes or the scale of the illicit market.
The HSE has set an annual target of 40 inspections of manufacturers, importers, and distributors of vapes, which BAT Ireland believes is not sufficient given the size of the market and the scale of the illicit problem.
BAT Ireland encourages the Government to introduce a structured mechanism to track and measure the size of the illegal vape market, similar to Revenue’s long-running Illegal Tobacco Product Research Surveys to ensure ongoing oversight.
“Vape taxes must go hand in hand with additional market controls, including retail licensing and increased inspections, otherwise the only winners from this budget measure will be criminals,” said Melinn.
The upcoming ban on vape flavours as set out in the Nicotine Inhaling Products Bill 2024, is expected to further increase demand for illicit vapes, as vapers who depend on flavours will look to source their e-liquids elsewhere.
“With the introduction of the new excise and a potential vape flavour ban in the pipeline it is critical that urgent enforcement measures are ramped up across the board via Revenue and HSE inspection.
“If not, Ireland risks becoming an even greater target for criminal smugglers.”
Read more: Ireland delays underage vaping ban, BAT Ireland pushes for urgent legislation
© 2025, ShelfLife by Ryan Brennan
Related Articles
Vape licensing needs strong enforcement – RVI →
Followers 0
Fans 0
Followers