Poland Plans to Increase Tax on E-Cigarette Liquid: Implications Revealed

Aug.09.2024
Poland Plans to Increase Tax on E-Cigarette Liquid: Implications Revealed
Polish finance ministry plans increased tax on e-cigarette liquid, causing prices to surpass traditional cigarettes, sparking industry backlash.

According to BIZNES, on August 9th, the Polish Ministry of Finance plans to increase taxes on e-cigarette liquid, which will result in e-cigarette liquid being more expensive than traditional cigarettes next year.


Domestic producers strongly oppose this plan, as they believe it will lead to the growth of the grey market and negatively impact the domestic market for small and medium-sized enterprises at a legal level. The sudden increase in tax burden imposed by the government has given them very little time to prepare, only a few months.


The Ministry of Finance announced in July that it will significantly increase the tax rate on tobacco products and their alternatives (including e-cigarettes and e-liquid) starting in 2025. This decision overturns the previously established tax rules from 2021 to 2027.


According to estimates from the Ministry of Finance, the retail price of a pack of 20 cigarettes will increase by approximately 2.7 to 3.1 Zloty per year from 2025 to 2027 (equivalent to around 4.89-5.61 RMB). The price is expected to reach nearly 21 Zloty (around 38.03 RMB) next year and close to 27 Zloty (around 48.9 RMB) by 2027. Meanwhile, the price of e-cigarette liquid is predicted to rise by about 4.4 to 5 Zloty per year (approximately 7.97-9.06 RMB), with the price exceeding 23 Zloty (around 41.65 RMB) next year and approaching 33.5 Zloty (around 60.67 RMB) in three years.


Experts point out that this could encourage consumers to choose more harmful traditional cigarettes instead of milder alternatives.


E-cigarette liquid manufacturers emphasize that a sharp and sudden increase in taxes will lead to the growth of the black market. According to data from Almares research company, the grey market share of the traditional tobacco market has been decreasing since 2016, reaching a historic low of less than 5% by 2023. This trend may now be reversed.


The Ministry of Finance predicts that after the implementation of the planned tax increases, revenue from tobacco products and value-added tax will reach 420 million zloty (approximately 760 million yuan) next year, 430 million zloty (approximately 790 million yuan) in 2026, and 400 million zloty (approximately 720 million yuan) in 2027.


Experts point out that if this indeed leads to an increase in the grey market of e-cigarette liquid, the national budget will not be able to receive the expected revenue. In fact, these revenues may be even lower than before the tax increase.


Industry insiders also pointed out that the rapid and significant increase in taxes will negatively impact small and medium-sized enterprises producing e-cigarette liquid domestically. The government's sudden announcement has caused confusion in the market, leading many companies to pause their development plans.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

NACS Urges USTR to Address Illegal E-Cigarette Exports in China Trade Engagements
NACS Urges USTR to Address Illegal E-Cigarette Exports in China Trade Engagements
NACS submitted a comment letter to USTR in a proceeding examining unfair trade practices worldwide. The letter focuses on illicit nicotine products made in China and shipped to the United States in violation of U.S. law. NACS said the U.S. electronic nicotine delivery systems market has become dominated by illicit products, mainly disposable e-cigarettes manufactured in China and sold without the marketing authorization required by the U.S. Food and Drug Administration.
Apr.16 by 2FIRSTS.ai
Swedish Politicians Ask European Commission to Clarify Legality of France’s Nicotine Pouch Ban
Swedish Politicians Ask European Commission to Clarify Legality of France’s Nicotine Pouch Ban
France’s ban on oral nicotine pouches has triggered an immediate response in Sweden. Swedish Minister for Foreign Trade Benjamin Dousa said Sweden had mobilized strongly against the ban and argued that it constitutes a clear obstacle to the free movement of goods within the EU single market. Swedish officials say the measure affects a strategically important domestic industry and conflicts with Sweden’s harm-reduction approach to public health.
Apr.14 by 2FIRSTS.ai
EU Novel Tobacco Regulation Trends and Business Response | Guest Contribution by a European Legal and Compliance Expert
EU Novel Tobacco Regulation Trends and Business Response | Guest Contribution by a European Legal and Compliance Expert
Carlos Cabrera, founder of CabLab Law & Advocacy, contributes this article to 2Firsts, arguing that the EU’s evolving approach to novel tobacco regulation may unintentionally reinforce cigarette use by narrowing alternatives. He warns companies to watch signals on flavours, labelling, traceability, nicotine pouch rules and digital marketing, while grounding business decisions in realistic timelines, compliance planning and continuous monitoring.
Apr.22
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
2Firsts explored whether hookah can evolve into a more mature and governable category by interviewing Dubai-based hookah company AIR. AIR argues that strong margins, OOKA’s closed-system model and the prospect of differentiated regulation could support that shift. The larger question is whether this is simply AIR’s capital-markets narrative, or an early sign that competition, regulation and category boundaries in hookah are beginning to change.
Apr.02
Russian Duma Speaker Says Amendment Giving Regions Power to Ban Vape Sales Is Planned for Adoption in May
Russian Duma Speaker Says Amendment Giving Regions Power to Ban Vape Sales Is Planned for Adoption in May
Russian State Duma Speaker Vyacheslav Volodin said an amendment that would give Russian regions the power to ban vape sales is planned for adoption in May. Volodin said the decision concerns the health of citizens, especially children. He also said doctors have recorded a 30% increase in patients with respiratory diseases caused or aggravated by vape use, with adolescents and people under 35 most often affected.
Apr.24 by 2FIRSTS.ai
Russian Public Group Seeks Website Restrictions on Remote Vape and Nicotine Sales
Russian Public Group Seeks Website Restrictions on Remote Vape and Nicotine Sales
Russian public movement “Healthy Fatherland,” has proposed blocking access in Russia to online resources that sell vapes and nicotine-containing products remotely.
Apr.15 by 2FIRSTS.ai