Peadar Tóibín (Meath West, Sinn Fein)
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89. To ask the Minister for Finance the revenue that would be raised for the Exchequer by introducing a tax on e-cigarettes and liquid nicotine. [25260/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, electronic cigarettes ('e-cigarettes') are products that deliver a non-medicinal nicotine-containing aerosol by heating a solution (or 'e-liquid') typically made up of propylene glycol, nicotine and flavouring agents. Despite their design, electronic cigarettes do not contain tobacco, and there is no combustion involved. Accordingly, neither e-cigarettes nor e-liquid fall under the harmonised regime for the taxation of tobacco products contained in the Tobacco Products Tax Directive (Directive 2011/64/EU), and may therefore be subject to rates and structures of duty arrived at by each Member State of the European Union.

The Deputy has not proposed a definition of the taxable product, duty structure or rate. However, I will take it that the Deputy wishes to impose a duty on the e-cigarette itself, and on e-liquid containing nicotine above a certain percentage of volume (i.e. above 0.5%). Given a large quantity of the purchase of e-cigarettes and e-liquids takes place online it is difficult to estimate how large the market for such products is in Ireland.

However, it is possible to estimate use based on provisional prevalence statistics collected by the Health Service Executive. Using these estimates, it is possible to estimate the yield from imposing a (VAT-inclusive) duty of €0.50 per 10ml of 'e-liquid'. Assuming a full pass through of such a duty imposition, the yield from such a duty of excise would be €8.3 million.

I would point out that imposing and collecting a duty on e-cigarettes would require the encompassing of e-cigarettes within the current excise collection system, which would require additional Revenue resources.