Portuguese Government Proposes Increase in Tobacco Tax in 2024
According to theportugalnews, on October 23rd, the Portuguese government presented the proposed national budget for 2024, which includes an increase in tobacco taxes. The plan anticipates total revenue of 170 million euros, with particular attention being drawn to the taxation of nicotine-free e-cigarettes.
In the past, tobacco taxes were determined based on the price of tobacco, with higher-priced products being subject to higher taxes. However, with the new regulations, taxes will now be determined based on the nicotine content of each product.
In addition, the government also aims to "punish" products with lower prices such as small cigars or cigarette tobacco, as they are more appealing to young people.
This decision also includes taxing e-cigarette products without nicotine, as these products have seen a rapid increase in consumption in Portugal. They may serve as an "entry point" for new smokers adopting a smoking habit and pose a risk to public health as they cannot be effectively controlled.
According to the new tax rate regulations, the price of a pack of cigarettes may increase by 30 to 40 euros cents by 2024, if the additional tax burden is passed on to the consumers. As for mini cigars, their prices could potentially double due to their lower price range (approximately 2.50/3 euros).
As for e-cigarettes with flavored e-liquids, the current tax rate is 12.5%. However, if the liquid contains nicotine, the tax rate will increase to 25%. In the case of vapes, the tax rate is currently set at 50%. As for cigarette tobacco, which is an alternative when tobacco prices rise, the tax rate will be 75% of the regular cigarette tax rate.
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