399. Deputy Ged Nash asked the Minister for Finance the yield to the Exchequer from an increase of €0.50 in the e-liquid products tax by €0.50; the current estimated annual yield; and if he will make a statement on the matter. [29424/25]

Paschal Donohoe, Minister for Finance: Legislation for E-Liquid Products Tax (EPT) was enacted in Finance Act 2024 and is subject to commencement by Ministerial Order. Under the new law, EPT will apply to both nicotine-containing and non-nicotine-containing e-liquid products at a flat rate of €0.50 per millilitre. As the tax will be based on the volume of e-liquid, there will be no differentiation in the rate applied amongst single-use, disposable vapes and refillable cartridges.

Reliable data in relation to the overall size of the e-cigarette market in Ireland has proven difficult to establish due to the lack of information in this general area. Based on the limited available information about the e-cigarette market size in Ireland, the prevalence of e-cigarette products and the experiences of other Member States in administering a domestic tax on these products, a conservative estimate of €17 million was derived as the potential 2026 full-year yield of the tax. The projected tax yield was purposely set at a lower level to avoid overestimating revenue in the early stages of implementation of the tax. As with the introduction of any new excise tax, changing market dynamics and a shift in consumer behaviour may impact potential revenues.

In light of the fact that the tax base for e-liquids has not yet been established it is not possible to accurately estimate the impact of potential tax rate changes on future yields.