Poland's excise tax on tobacco products will increase by 75% on e-cigarettes

According to the "Fakt" reported on July 10, the Polish Ministry of Finance and the Ministry of Health have recently been indicating that the excise tax on tobacco products is about to be adjusted, planning to gradually increase the tax rate, and it is expected that by 2025, the excise tax on tobacco products will reach a new high: cigarettes will increase by 25%, hand cigarettes will increase by 38%, innovative tobacco products will increase by 50%, and electronic cigarettes will increase by 75%. The upheaval has sent shockwaves through the industry.

 

In the next three years, there will be a corresponding increase in excise duty on all tobacco products in Poland, with total increases of up to 60% for cigarettes, up to 90% for hand-rolled cigarettes, 85% for innovative tobacco products and 150% for e-cigarettes. It is estimated that by 2025, such a change in excise tax will bring the price of the cheapest pack of cigarettes to 20 zlotys (about $5.09); E-cigarettes are expected to see sharp excise tax increases of 75%, 50% and 25%, respectively, between 2025 and 2027.

 

On the X service (formerly Twitter), the chief economist of the Polish Federal Association of Entrepreneurs, Lukukasz Koz? owski, also chronicled his doubts about the finance ministry's calculations. He pointed out that the government had violated Article 11 of the Coalition agreement, which required at least six months 'notice of tax changes, and now the government had told them to expect an additional GST increase in less time.

 

The Finance Ministry believes that Poles will not stop smoking, but will turn their attention to the grey market and smuggled products.