A vape tax is "likely" in the upcoming Budget and will increase over the coming years, the Finance Minister has said.
A "domestic tax" was signalled last year by then-Finance Minister Michael McGrath "in light of public health interests".
He said at the time that "considerable preparatory work" was to be carried out in drafting legislation on a vape tax.
It's thought the Government could wait for a European Union Directive on these products before taxation.
Finance Minister Jack Chambers said work is being done to progress the measure.
"It's our intention to make progress on that in this year's Budget," he said.
"There's work ongoing between Revenue and the Department of Finance on how we can operationalise that."
A man holds a range of disposable vapes. Image: Ian Davidson / Alamy Stock PhotoMinister Chambers said he wants to follow through on the vape tax.
"Obviously I'll be able to set out further information on Budget Day but I want to follow through on Minister McGrath's commitment for next year," he said.
"The details and the technicalities are being worked through on how we can make that possible for 2025."
Minister Chambers said they are "trying to work through the finer detail" on how it would work.
Asked if the measure was definitively coming in for Budget 2025, Minister Chambers replied: "I can say it's likely".
Tax trajectory
Minister Chambers said any such vape tax would have to take account of several factors.
"There's European changes that are occurring as well and the level set will have to be cognizant of the impart on smuggling or illegal trade for e-cigarettes.
"I expect the trajectory to rise once it's introduced in a particular budget I expect that to rise in following years.
"Whether it meets the same threshold as cigarettes is obviously for a future government and a future minister to set that out".
In the first four months of 2023 alone, 26.3 million disposable vaping products were sold – a major increase from the 5.6 million vapes sold throughout 2022.
