Poland Adopts E-Cigarette Excise Duty Rates Bill Changes
The Standing Committee of the Council of Ministers has adopted a bill amending excise duty rates, including those for e-cigarettes, and recommends government approval, according to a letter from the Ministry of Finance to the Prime Minister’s Office. The bill notably excludes excise duty on vaporization devices, which will be covered by a separate piece of legislation.
“The project was adopted by the Standing Committee of the Council of Ministers and recommended to the Council of Ministers,” the letter states. The latest version of the draft act amending excise duty rates on tobacco products, including e-cigarettes, estimates budget revenues of PLN 3.5 billion in 2025, a decrease of PLN 700 million compared to the original version’s projection of PLN 4.2 billion.
The Ministry of Finance urges the Prime Minister’s office to address the excise duty rates bill urgently, given the significance of the matter.
Significant Increase in E-Cigarette Excise Duty Planned
In July, head of the Ministry of Finance Andrzej Domański announced plans for excise duty increases on various products. While alcohol faced a modest 5% increase, e-cigarettes were set to experience a more substantial hike.
The Ministry of Finance predicted a significant 75% increase in excise duty on e-cigarettes, specifically targeting the oils used to fill the devices. This proposed increase sparked criticism from the tobacco industry.
In response to industry pushback, reports in early September suggested that the government might consider splitting the e-cigarette excise tax increase into two stages. The first stage would apply unchanged from January 1, while the second would take effect on May 1, 2025, potentially allowing for a more gradual adjustment to the new rates.
As the Polish government moves closer to implementing these new excise duty rates, the exclusion of vaporization devices from the current bill and the plan to address them in separate legislation adds an element of uncertainty to the future landscape of e-cigarette taxation in the country.
News Source: Nowe stawki akcyzy o krok bliżej. Projekt przyjęto ze zmianami
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