Slovak Parliament Approves Higher E-Cigarettes Tax

The National Council of the Slovak Republic (NR SR) has definitively approved an amendment to the Excise Tax Act on Tobacco Products, which will extend the excise tax to electronic cigarette refills, nicotine pouches, and other nicotine products starting next year. The amendment also introduces a gradual increase in the excise tax on tobacco products in the coming years.

Marking and Monitoring of Tobacco-Related Products

The legal amendment aims to introduce the marking of tobacco-related products with a control stamp and set a deadline for the sale of these products without a control stamp. It also seeks to streamline and control the movement of products related to tobacco products and smokeless tobacco products, as well as expand the definition of smokeless tobacco products to include chewing tobacco and snuff.

Addressing Public Finance Deficit and Debt

The Ministry of Finance emphasized that the proposed law is part of consolidation measures to ensure additional state budget revenues, given Slovakia’s high public finance deficit and debt. Implementing these measures will contribute to the stabilization of public finances.

Expected Revenue Contribution

According to the Ministry of Finance, the changes are expected to bring 15 million euros to the budget next year, 126 million euros in 2026, and 180 million euros in 2027.

Growing Consumption of Innovative Tobacco Products

The Ministry of Finance pointed out that the consumption of new, innovative tobacco products in Slovakia is growing every year, particularly among younger age groups. These products are becoming substitutes for traditional tobacco products.

“Due to their short existence on the market, it is currently impossible to claim based on available evidence that these products are less harmful, especially in low age categories, with the potential risk of future public expenditures on healthcare associated with the use of these products,” the ministry stated.

Tax as an Effective Tool for Consumption Control

The Ministry of Finance considers taxation one of the most effective tools for controlling the consumption of products falling into negative externalities, particularly among the younger population. The European Union is expected to respond to the challenges associated with new products in the short term.

Situation in the V4 Region

Regarding the V4 region, Poland currently taxes electronic cigarettes, Hungary taxes electronic cigarettes and nicotine pouches, and the Czech Republic taxes electronic cigarettes, nicotine pouches, other nicotine products, chewing tobacco, and snuff.

Increased Risk of Tax Evasion

According to the Ministry of Finance, the growing consumption of such products without effective control also means a higher risk of tax evasion. Based on data from eKasa from January 2022 to December 2023, their consumption has increased significantly. The sale of electronic cigarettes increased by 200 percent year-on-year, while the sale of nicotine pouches increased by 57 percent.

Introducing a Comprehensive Control Framework

As there is currently no comprehensive framework for controlling the sale of these products, and some products may be illegal or harmful to health, the Ministry of Finance proposes introducing a system of records for trading in the respective goods, including control of their distribution and distance selling. The control over goods related to tobacco products will be entrusted to the customs offices.

News source: Poslanci schválili vyššiu daň na tabak. Zdaňovať sa po novom budú aj elektronické cigarety

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.