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Friday, October 18, 2024

Excise tax rates on tobacco products go up

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The Parliament passed an act increasing excise tax rates on tobacco products, including heated ones, as well as liquid for electronic cigarettes.

236 MPs voted for the adoption of the Act amending the Excise Duty Act, 188 were against and 2 MPs abstained. Now the bill will go to the Senate.

Excise tax up

The amendment included a new so-called road map of excise tax increases on tobacco products, i.e. information on planned excise tax increases on cigarettes, tobacco products and liquid for e-cigarettes and innovative products in 2025-2027.

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The amended act assumes that in 2025, the excise tax rate in the quota part for cigarettes will increase by 25 percent, in 2026 – by 20 percent, and in 2027 – by 15 percent. The quota part of the excise tax on smoking tobacco will be increased by 38%. next year, by 30 percent in 2026 and by 22 percent in 2027.

According to the act, excise tax rates on cigars and cigarillos will be increased by 25% next year, by 20% in 2026, and by 15% in 2027.

Excise tax rates will also go up – in the quantitative part, imposed on innovative products (heated tobacco products). They will increase by 50%. in 2025, by 20 percent in 2026 and by 15 percent in 2027. The excise tax on liquid for electronic cigarettes is also to be increased – next year it is to increase by 75 percent, in 2026 by 50 percent, and in 2027 by 25 percent.

The current tax rates will apply until February 28, 2025. From March 1, 2025 to December 31, 2025, the new excise tax amount will apply.

The new excise tax rates are primarily intended to limit the consumption of tobacco products and their substitutes, especially by minors.

Main photo source: Shutterstock



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