Seeking Alpha

Italy gets busy taxing e-cigarette sales

  • Italy will impose a 80.5% tax on e-cigarettes after the government comes to the conclusion it's missing out on a major revenue stream as consumers in the nation move to e-cigs from traditional tobacco products.
  • What to watch: The global electronic cigarette market is expected to grow to $7B in 2014 on strong consumer demand, but the future of the industry is still unsettled with governments and regulators in some key markets yet to fully weigh in.
  • Bloomberg report (video)
  • Related stocks: MO, PM, LO, RAI, BTI, ITYBY.
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Comments (10)
  • Matthew Mazurczak
    , contributor
    Comments (1329) | Send Message
     
    Wow another country addicted to tax revenues in Europe, thats a surprise.
    2 Jan 2014, 09:23 AM Reply Like
  • doc47
    , contributor
    Comments (1287) | Send Message
     
    An 80%+ tax, why not just make e-cigarettes a felony!?
    2 Jan 2014, 11:32 AM Reply Like
  • wayneq
    , contributor
    Comments (35) | Send Message
     
    Because they don't care for anything but the money!
    3 Jan 2014, 03:49 PM Reply Like
  • magi48
    , contributor
    Comments (184) | Send Message
     
    Lots of money to be made for the investor and Government. Get on board early or miss out.
    2 Jan 2014, 03:54 PM Reply Like
  • Tesla Revolution
    , contributor
    Comments (157) | Send Message
     
    They are taxing it at EIGHTY percent on the dollar. Just what do you propose we invest in?
    I think that young people who do not have the money to buy tobacco products will slowly wean-themselves off or not even start smoking.
    And so , in 10 years there will be less users.
    3 Jan 2014, 12:52 PM Reply Like
  • mikemorgan
    , contributor
    Comments (11) | Send Message
     
    80% seems extremely excessive for an e-cig tax, but it's Europe and see E Cig Werks http://bit.ly/1lDlnyY for more.
    2 Jan 2014, 06:45 PM Reply Like
  • bill d
    , contributor
    Comments (1906) | Send Message
     
    Must be a cheaper alternative to regular cigarettes.
    2 Jan 2014, 11:28 PM Reply Like
  • Yuk Yeung Phelix Lee
    , contributor
    Comments (19) | Send Message
     
    Well, at least the government taxes e-cig rather than ban them outright.

     

    Long MO and PM.
    3 Jan 2014, 12:43 PM Reply Like
  • wayneq
    , contributor
    Comments (35) | Send Message
     
    They won't ban them, they want/need the money!
    3 Jan 2014, 03:51 PM Reply Like
  • slam stocks
    , contributor
    Comments (1390) | Send Message
     
    Indian Reserves pay little if any tax on cigs and purchase in large quantities to resell at much lower rates. Cig mfg. still earn the same if not more profits and the losers will be the govt., Imposing such a strong tax, govt. revenues would actually fall due to the illegal "black market" that will be created. The state of New York tried a high tax a few years ago and had to cancel the program shortly thereafter.

     

    So creating such a tax only fosters smuggling and MO & PM will still earn plenty of money for shareholders.
    3 Jan 2014, 08:05 PM Reply Like
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