The Polish Ministry of Finance has informed entrepreneurs of planned changes to the excise tax on cigarettes and other tobacco products during a recent meeting. The ministry intends to implement record increases in 2025, with the potential for a staggering 150% rise over the next few years.
Excise Tax to Soar Across All Tobacco Products
While changes to the excise tax had been anticipated for weeks following announcements from the Minister of Health, the magnitude of the proposed increases has caught many off guard. The excise tax on e-cigarettes is set to rise by 75% as early as next year, with all tobacco products facing significant hikes.
According to reports from the meeting, the excise tax will increase in 2025 by:
- 25% on cigarettes
- 38% on rolling tobacco
- 50% on innovative products
- 75% on e-cigarettes
The Polish newspaper "Fakt" calculates that these increases in 2025 will push the price of a pack of cigarettes to 20 PLN (approximately 4.50 EUR). While entrepreneurs appreciate the opportunity to engage in dialogue with the ministry, they have expressed surprise at the scale and swiftness of the proposed changes.
Concerns Over Short Notice and Broken Promises
Łukasz Kozłowski, chief economist of the Federation of Polish Entrepreneurs, took to social media to voice his concerns. "Greetings from the Ministry of Finance, where point 11 of the coalition agreement, which states that changes in taxes will be introduced with at least 6 months' notice, has just collapsed. Meanwhile, we have learned that we are facing additional excise tax increases in an even shorter timeframe," he wrote on X (formerly Twitter).
Substantial Increases Planned Through 2027
E-cigarettes will face the steepest tax hikes, with a 75% increase in 2025, followed by a 50% rise in 2026 and a further 25% in 2027. However, over the next three years, the excise tax on all tobacco products will increase significantly. The cumulative increases are as follows:
- Cigarettes: 60% (25%, 20%, 15%)
- Rolling tobacco: 90% (38%, 30%, 22%)
- Innovative products: 85% (50%, 20%, 15%)
- E-cigarettes: 150% (75%, 50%, 25%)
As the Polish government moves forward with these substantial excise tax increases, concerns are growing among entrepreneurs and consumers alike about the impact on prices and the tobacco industry as a whole. With a meeting on alcohol excise tax also on the horizon, many are bracing for further record-breaking changes in the near future.
