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Poland to hike tobacco excise taxes

30.07.2024 12:30
Poland's government plans substantial tax increases on tobacco products and electronic smoking devices over the next three years.
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Pixabay LicenseImage by Lindsay Fox from Pixabay

The move is part of a broader push aimed at curbing smoking rates across the nation.

The excise tax on cigarettes will see a phased increase: 25 percent in 2025, followed by 20 percent in 2026, and 15 percent in 2027, according to an announcement by the Polish Prime Minister's Office.

This trend of increasing taxes extends to loose tobacco as well, with hikes of 38 percent in 2025, 30 percent in 2026, and 22 percent in 2027.

For fans of cigars and cigarillos, a similar tax hike pattern will follow, with a 25 percent increase next year, 20 percent in 2026, and 15 percent in 2027.

Dry tobacco products are also set to face steeper taxes at the same rates as loose tobacco.

Vaping products will not escape the tax surge. Excise tax on e-cigarette liquids will shoot up by 75 percent in 2025, with subsequent increases of 50 percent in 2026 and 25 percent in 2027.

Innovative tobacco products will endure a 50-percent tax increase in 2025, with a further 20 percent in 2026 and 15 percent in 2027.

In a new development, vaping devices will be explicitly taxed, with a fixed rate of PLN 40 (EUR 9.30, USD 10.10) per unit set to be introduced.

This regulation aligns with the global trend of increasing regulation on vaping, including a requirement for these devices to be registered for tax purposes and to carry excise and validation stamps.

The planned legislation is expected to be debated by the government in the third quarter of 2024. It includes detailed measures to define what constitutes a vaping device, establish taxable entities, and outline the responsibilities of taxpayers, such as mandatory registration and tax declaration.

(rt/gs)

Source: PAP