German Court Rejects Challenge to E-Cigarette Liquid Tax

The Federal Constitutional Court ruled that the complaint against the 2022 e-cigarette liquid tax was inadmissible, upholding the levy.

The Federal Constitutional Court in Karlsruhe dismissed a constitutional complaint against the tax on e-cigarette liquids, introduced in July 2022.
The complaint was filed by three e-cigarette consumers and two manufacturers, who argued the tax violated the principle of equality and property rights.
The court deemed the complaint inadmissible, stating the plaintiffs failed to explain why they did not first pursue the matter in financial courts.
The plaintiffs also argued the tax did not reflect the lower health risks of e-cigarettes compared to traditional tobacco, but the court upheld the legislature's discretion in setting behavior-influencing taxes.
The tax, currently at 20 cents per milliliter, is set to increase annually until 2026 as part of efforts to modernize tobacco taxation in Germany.