- Tobacco tax

Taxation of vapes/e-cigarettes as per 1 October 2024

Starting on 1 October 2024, vapes and e-cigarettes are included under tobacco tax regulations as substitute products and are subject to tobacco tax. The new regulations will apply to both nicotine-containing and nicotine-free e-liquids and enter into force simultaneously with the tobacco products act. Notably, disposable e-cigarettes will be taxed at a higher rate compared to refillable ones.

Read more in the following Newsletter:

Increase of tobacco tax rates as per 1 January 2025

If you are savoring a cigar with a glass of fine Scotch or kicking back with a bold pinch of snus, take note: tax changes are on the horizon. On October 16, 2024, the Federal Council passed an ordinance regarding the amendment of the Tobacco Tax Act (TTA), moderately increasing the tax rates on cigars, cigarillos, fine-cut and water pipe tobacco, other smoking tobacco, and other tobacco products such as snus, chewing, and snuff tobacco.

From January 1, 2025, certain tobacco tax rates will increase as follows:

Cigars and cigarillos: CHF 0.76 per unit (before CHF 0.56) and 1% of the retail price.
Fine-cut and water pipe tobacco: CHF 46.00 (before CHF 38.00) per kilogram and 25% of the retail price, with a minimum of CHF 90.00 (before CHF 80.00) per kilogram.
Other smoking tobacco and remaining tobacco products (e.g., rolling tobacco, cigar cuttings): 16% (before 12%) of the retail price.
Chewing and snuff tobacco: 10% (before 6%) of the retail price.

The tax rate on traditional cigarettes can no longer be increased. The Federal Council fully exhausted its authority in this respect in 2013.

Meanwhile, the tax rates on e-cigarettes remain unchanged:

Nicotine-containing liquids for refillable e-cigarettes: CHF 0.20 per millilitre.
Disposable single-use e-cigarettes (both nicotine and non-nicotine variants): CHF 1.00 per millilitre.

(The picture was created by ChatGPT on 20 October 2024 at 22:28 PM CH time)