The new tobacco tax law signed by the Polish president will lead to an annual increase in tobacco prices from 2025 to 2027, especially the increase in the tax on e-liquid to about $0.40 per milliliter, which is expected to bring additional revenue to the state budget but may also exacerbate the growth of the underground cigarette market.
According to Warszawa W Pigulce, Polish President Andrzej Duda signed a new tobacco tax bill on November 17.
From 2025 to 2027, the newly amended excise tax bill will increase the price of tobacco every year. The first price changes will take effect at the beginning of next year, with significant price increases for tobacco products.
Under the new regulations, the excise tax on cigarette goods will be increased by 25 percent from January 2025, which means that the minimum price of a pack of tobacco will reach 20 PLN ($4.9). Prices are expected to continue rising in the coming years. According to the Finance Ministry, the price of a pack of tobacco could reach 26-27 PLN ($6) by 2027.
Increase to $0.40 per m
In addition, e-liquid is subject to a tax of 1.80 zlotys ($0.4) per milliliter. The government estimates that the tax reform will generate an additional 3.5 billion PLN per year for the state budget ($850 million).
Despite the price increase, cigarette prices in Poland are still among the lowest in the EU.
Industry experts have warned that the sharp rise could boost the growth of the underground cigarette market. Illegal cigarette trade already accounts for 3.6 percent of legal sales, and price increases could push that percentage even higher. Statistics show that about 60,000 people die from cigarettes in Poland every year.
