The Polish Vape Association warns that the government’s proposed increase in the excise tax on vape devices will significantly increase product prices, making them less competitive and driving consumers back to traditional tobacco products. The new tax could raise device prices from the current $11-16 to $19-24. The association is preparing legal and international countermeasures, criticizing the policy for failing to achieve fair regulation across tobacco products.
Key Points:
- Policy Impact: The proposed increase in the vape excise tax could severely impact market supply and popularity, creating conditions for harmful substances to enter the market.
- Market Imbalance: The vape market will be marginalized, while more harmful traditional cigarettes and other products will continue to dominate the market, resulting in unequal treatment of market participants.
- Price Change: The new tax would increase the price of vape devices from 40-60 złoty (approximately $11-16) to 70-90 złoty (approximately $19-24).
- Adverse Consequences: It could cause manufacturers to turn to the black market, jeopardizing the viability of legitimate businesses and potentially leading to a return of consumers to traditional cigarettes, particularly among young people. Industry Response: Associations are challenging the legislation through legal and international channels, and some companies are preparing to seek compensation.
Polish Vape association warns of tax hike risks
According to Strefabiznesu on August 4, the Polish Vape Association (PZPBV) stated that the proposed excise tax increase could severely impact the market availability and popularity of vape devices, thereby making room for more harmful substances to enter the market.
Maciej Powroźnik, president of the Polish vape Association, noted that imposing an excise tax on vape devices would marginalize a portion of the market, while more harmful traditional cigarettes and heated tobacco products would continue to dominate. He further stated that this move would not achieve fair treatment among market participants in terms of protecting public health and young people.
May drive users back to traditional tobacco
The implementation of this tax policy would negatively impact smokers and small and medium-sized enterprises. Powroźnik questioned why vapes should be eliminated from the market, given that scientific research clearly shows that they are less harmful than many legal products.
The new policy would lead to a series of price increases. Currently, vape devices sell for around 40-60 złoty (approximately $11-16 USD). The new tax will raise prices to 70-90 złoty (approximately $19-24 USD). The price of vape cartridges will also increase significantly.
The PZPBV warns that such regulatory changes could cause manufacturers to turn to the black market. Legitimate businesses could be forced out of business due to the selective crackdown, leading to the burgeoning illegal market. Furthermore, the government’s lack of effective oversight of the illegal trade has resulted in legitimate businesses facing unfair treatment.
Jarosław Neneman, Poland’s Deputy Finance Minister responsible for the new tax, stated that the policy’s purpose is to create a level playing field for tobacco and smokeless products, but in practice, it has made vapes a luxury product.
Industry insiders and consumers are concerned that the implementation of the new policy will make vapes less competitive and drive more consumers back to cheaper traditional cigarettes, a trend that is likely to be more pronounced among young people.
The PZPBV is currently engaging in legal and international battles over tax policies to protect Polish vape companies and has stated that some companies are preparing to seek legal compensation. Consumers generally lament that stockpiling vape devices and e-liquids will become a necessity for many users in the future.
Industry analysts believe that high taxes will undermine legitimate market operations, encourage the development of the illegal market, and in turn negatively impact public health. While legislators’ original intention was to enhance public health protection through these policies, the reality may be counterproductive, driving more consumers to turn to more harmful traditional tobacco products.
