Poland’s tobacco industry is facing dramatic changes, with the industry shaken by a sharp rise in Polish extrusion taxes and an increase of up to 75% in taxes on e-cigarettes.
According to Fakt, according to a July 10 report. Poland’s finance and health ministries recently said they will adjust the excise tax on cigarette goods and plan to gradually increase the rate. Excise taxes on tobacco products are expected to reach new highs by 2025: tobacco by 25%, hand cigarettes by 38%, innovative cigarette products by 50% and e-cigarettes by 75%. This dramatic change has sent shockwaves through the industry.
Over the next three years, excise taxes on all tobacco products in Poland will increase accordingly, with total growth rates of up to 60% for tobacco, 90% for hand cigarettes, and 85% and 150% for innovative cigarette products and vapes. It is estimated that by 2025, such excise tax adjustments will bring the price of the cheapest pack of cigarettes to PLN 20 (about $5.09); excise taxes on e-cigarettes are projected to rise sharply by 75%, 50%, and 25% between 2025 and 2027.
Łukasz Kozłowski is the chief economist of the Polish Federal Association of Entrepreneurs (Łukasz Kozłowski) X service (formerly Twitter) also described his skepticism about the Finance Ministry’s considerations. He pointed out that the government’s move violates Article 11 of the coalition agreement. Which stipulates that tax changes require at least six months’ notice. Now that the government has informed them, they need to meet the additional excise tax increase in a much shorter time.
The Finance Ministry believes that Poles will not stop smoking, but will turn their attention to the gray market and smuggled goods.
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