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

Brazil’s Teen E-Cigarette Experimentation Rate Rises to 29.6% Over Five Years
Brazil’s Teen E-Cigarette Experimentation Rate Rises to 29.6% Over Five Years
Brazil’s National School Health Survey (PeNSE) 2024 found that e-cigarette experimentation among students aged 13 to 17 rose from 16.8% in 2019 to 29.6% in 2024, while use in the previous 30 days increased from 8.6% to 26.3%. Over the same period, conventional cigarette experimentation fell from 22.6% to 18.5%, and hookah use declined from 26.9% to 16.4%.
Mar.26 by 2FIRSTS.ai
Brazilian Police Find More Than 40,000 E-Cigarettes in Truck With Hidden Safe
Brazilian Police Find More Than 40,000 E-Cigarettes in Truck With Hidden Safe
Military police in Brazil’s Paraná state found more than 40,000 e-cigarettes inside a truck with a hidden safe on April 8 in Campina Grande do Sul, in the Curitiba metropolitan area.
Apr.13 by 2FIRSTS.ai
Philip Morris Korea Names Lee Hong-seok as New CEO Effective May 1
Philip Morris Korea Names Lee Hong-seok as New CEO Effective May 1
Philip Morris Korea said on April 29 that it has appointed Lee Hong-seok, head of its smoke-free products division, as its new chief executive officer, with his term beginning on May 1. Yoon Hee-kyung, who took office in 2023, will step down after about three years in the role.
Apr.30 by 2FIRSTS.ai
Italy Formally Submits Detailed Opinion to EU Obstructing Ireland's Disposable Vape Ban
Italy Formally Submits Detailed Opinion to EU Obstructing Ireland's Disposable Vape Ban
Italy's Ministry of Enterprises and Made in Italy has submitted a detailed opinion against Ireland's proposed "Public Health (Single Use Vapes) Bill 2025." Italy argued that the comprehensive ban on disposable vapes lacks scientific evidence, violates the EU principle of the free movement of goods, and conflicts with the existing Tobacco Products Directive.
Apr.10 by 2FIRSTS.ai
Poland to Discuss Revised E-Cigarette Definitions With Focus on Induction Technology
Poland to Discuss Revised E-Cigarette Definitions With Focus on Induction Technology
According to the agenda published by Poland’s Council of Ministers on Monday, the government is set to consider a draft amendment to the Excise Tax Act on Tuesday.
Apr.14 by 2FIRSTS.ai
Smoore International Q1 Results: Enterprise-Focused Business Up 48.6% Year-on-Year, Proprietary E-Vapor Brand Business Up 14.3%
Smoore International Q1 Results: Enterprise-Focused Business Up 48.6% Year-on-Year, Proprietary E-Vapor Brand Business Up 14.3%
Smoore International reported its Q1 financial results, with revenue for the period reaching RMB3.856 billion, up 41.7% year-on-year, and net profit (profit for the period) totaling RMB262.5 million, up 36.6% year-on-year. Revenue from its enterprise-focused business was RMB3.2674 billion, representing a 48.6% increase from RMB2.1989 billion in the same period last year. Revenue from its proprietary brand business was RMB588.6 million, up 12.6% from RMB522.6 million a year earlier.
Apr.10 by 2FIRSTS.ai