Through an amendment, Slovakia’s national parliament included vape fillers and tobacco tar pouches in the scope of excise tax on tobacco products and gradually increased the tax rate to increase state revenues and stabilize the public budget.
Slovakia adopted the amendment
According to reports. Slovak television and radio reported on September 11, next year, vape fillers, tobacco tar pouches, and other tobacco tar products will be included in the scope of tobacco products excise tax. In addition, this tax rate will gradually increase in the coming years. This is one of the main elements of the amendments to the Act on Excise Tax on Tobacco Products of the Slovak National Parliament (NR), adopted on Wednesday (11).
This amendment to the law not only aims at labeling products related to tobacco products but also sets a clearance period for unlabeled products. The law also aims to improve the monitoring of the circulation of tobacco products and smokeless tobacco products and extends the concept of smokeless tobacco products to chewing and snuff.
An excise tax on vapes and nicotine packs will be introduced next year
The Slovak Ministry of Finance said the measures are aimed at stabilizing public finances through relevant measures to reduce the public deficit and state debt and increase additional revenues for the state budget. These changes will bring 15 million euros to the state budget next year, increasing to 126 million euros in 2026 and further to 180 million euros in 2027.
The Ministry of Finance also mentioned that due to the short time these new tobacco products have been on the market, it is difficult to prove that they are less harmful based on the available evidence. Lack of public awareness of the potential health risks of these products, especially among young people, is also an issue, which could lead to unpredictable public health costs in the future.
Consumption of new tobacco products increased significantly from January 2022 to December 2023, according to Ekasa. Sales of vapes increased by 200% year-on-year and sales of tobacco tar pouches increased by 57% year-on-year. The Ministry of Finance proposes to introduce a transaction detail system, including remote sales monitoring. Customs will be responsible for product control of tobacco products.
MPs rejected Marián Viskupic in the last vote. (Marián Viskupič) who suggested that the tax rate increase be lower than the government plan. He wants the tax rate increase to be in line with the tobacco tax rate increase, and each provision of the amendment will come into effect gradually this year and in the coming years.
