179. Deputy Pádraig O'Sullivan asked the Minister for Finance for an update on the Programme for Government to bring in a targeted taxation regime to specifically discourage vaping and e-cigarettes; and if he will make a statement on the matter. [6430/23]

Michael McGrath Minister for Finance: The taxation of tobacco products is harmonised across the EU and governed by the Tobacco Products Tax Directive 2011/64/EU. As the Directive has not been updated for a number of years, e-cigarettes (which do not contain tobacco) and other novel products are currently not provided for in the Directive.

In February 2021, the EU Commission launched ‘Europe’s Beating Cancer Plan’ with a commitment to take comprehensive action on tobacco to reduce tobacco consumption to less than 5% of the population by 2040. A review of the Tobacco Products Tax Directive, including a revision of EU tax rates and the inclusion of new products is a key action in the Plan. A review of the Directive has been undertaken and the Commission are due to present a proposed revision. Among many updates, the inclusion of e-cigarettes, vapes and novel tobacco products within the scope of the Directive is anticipated. The publication of the revised proposal was expected in December 2022 but has since been delayed. Ireland welcomes a proposal for a revised Directive to ensure that the rules remain fit for purpose, safeguard the proper functioning of the internal market and, very importantly, provide for a high level of health protection.

Domestically, the Programme for Government outlined plans to discourage ‘vaping’ and e-cigarettes through targeted taxation. The Department of Finance view is that tax policy in relation to novel products such as e-cigarettes and heated tobacco products may be best addressed in a harmonised fashion within the context of the revision to the EU Tobacco Products Tax Directive.