f6 Cigarettenfabrik (f6) is a manufacturer of heated tobacco inserts that are used with a battery-powered device to heat tobacco for consumption.  Until December 31, 2021, these inserts were taxed like pipe tobacco in Germany.  However, beginning January 1, 2022, an additional supplementary tax was applied to heated tobacco inserts (in addition to the excise tax duty).  f6 challenged the supplementary tax’s legality because it differed from taxes for other smoking tobacco products and was inconsistent with EU Directives.  The case was referred to the Court of Justice of the European Union (CJEU). 

The CJEU found that member states can add taxes to excise goods (which includes heated tobacco) for specific purposes.  The specific purpose, in this case, was to ensure that heated tobacco was taxed similarly to cigarettes and, therefore, deter nicotine-dependent consumers from replacing cigarettes with heated tobacco, which is also harmful to health.  As such, the CJEU found that Germany’s law applying a supplementary tax to heated tobacco inserts was compatible with EU Directives.