Italy's glass water pipes industry welcomes spring
by linbin on June 11, 2020
On November 26, Italy's amendment to the glass water pipes tax was passed in a vote organized by the Senate Finance Committee. Since then, the tax on glass water pipes will be greatly reduced, the tax on nicotine-containing glass water pipes tobacco oil will be reduced by 80%, and the tax on nicotine-free glass water pipes tobacco oil will be reduced by 90%. This means that after four years of unfair taxation by glass water pipes, Italy's glass water pipes industry can finally begin to rebuild and once again help smokers in the country find safer alternatives to cigarettes at reasonable prices.
Italy's water pipes online industry boomed before the implementation of the excise tax in 2014, with a total of about 4,000 glass water pipes enterprises and a population of only 61 million. However, after the consumption tax was imposed in 2014, the number of glass water pipes enterprises in Italy was reduced to 1,000 by the end of 2016. In 2014, Italy increased its tax on glass water pipes by nearly 0.40 euros (40 euro cents, or 46 cents) per milliliter and about 4 euros (or 4.60 dollars) per 10 milliliter bottle. Now, after the new law is passed, the tax on nicotine-containing glass water pipes is reduced to 0.08 euro per milliliter, and the tax on nicotine-free glass water pipes is reduced to 0.04 euro per milliliter.
The new tax change bill must still be approved by the entire parliament, but it is not expected to be a difficult problem. The bill should be passed before Christmas and come into force quickly.
The bill will also lift the ban on online sales in Italy (cross-border sales are still prohibited). The Italian Tobacco Customs Monopoly Association (AAMS) will retain its jurisdiction over glass water pipes. It will control the distribution of glass water pipes and monitor compliance with the glass water pipes Product Directive (TPD). Glass water pipes manufacturers must still comply with TPD rules, which means that the maximum bottle size of glass water pipes containing nicotine is 10ml and nicotine is limited to 20mg/ml.
For those who have been fighting tax laws for many years, they are very happy to see the tax changes in glass water pipes. According to Judy Gibson of the International Nicotine Consumer Organization, the previous tax was so high that the average daily cost of glass water pipes oil was twice that of a pack of cigarettes, which led to a sharp drop in Italian consumption of glass water pipes. In May 2015, Italy's water pipes for sale consumption dropped by about 70%, and the number of Italian glass water pipes suppliers and enterprises dropped from 4,000 to 1,000 in 2014 -2016.
The high tax revenue of glass water pipes has killed a large number of small tax paying enterprises and the job opportunities they have created. The state has reduced income, forced smokers to enter the black market to buy illegal and untested products, and prevented smokers from trying healthier cigarette substitutes that may save their lives. These have done no good to the country, but fortunately Italy has finally realized these and made changes. Italy's glass water pipes industry is finally coming into spring after a long winter. I believe the passage of the new tax bill will enable Italy's glass water pipes industry to develop rapidly and vigorously.