The Croatian government will implement higher excise duties on tobacco products and introduce a new tax on electronic cigarette liquids starting July 1, 2025. This reform aims to generate €74.7 million for the state budget and curb high smoking rates, particularly among adolescents.
New Tax Rates for Tobacco and E-Liquids
The draft regulation, prepared by the Ministry of Finance, increases specific duties across all tobacco categories. Cigarette specific excise duties will rise from €53.10 to €56.10 per 1,000 units, while the minimum levy climbs to €124.20.
For the first time, e-liquids will carry a tax of €0.20 per milliliter. Previously, these liquids fell under excise regulations but carried a zero-euro rate.
| Product Type | Previous Excise Rate | New Excise Rate (July 1, 2025) |
|---|---|---|
| Cigarettes (Specific per 1,000 units) | €53.10 | €56.10 |
| Heated Tobacco (per kg) | €185.82 | €198.50 |
| E-Liquids (per ml) | €0.00 | €0.20 |
| Fine-Cut Tobacco (per kg) | €114.15 | €120.50 |
Retailers Warn of Business Closures and Black Market Growth
Local vape distributors argue the new e-liquid tax will devastate the domestic market. Filip Tokić, a board member of vape company Dotmod, warned that the levy will cause retail prices to skyrocket.
“According to the proposed amount, e-liquids will become between 100 and 500 percent more expensive,” Tokić stated. “A bottle that used to cost €10 will cost €40 in the future. Few people will want to buy a product with such an uncompetitive price.”
Tokić also warned that the tax could backfire on public health. “This taxation will result in a mass return to tobacco cigarettes and the opening of a huge black market of uncontrolled products.”
High Smoking Prevalence Drives Policy
The Ministry of Health defends the tax hikes as a necessary measure to combat nicotine addiction. Data from the 2024 European School Survey Project on Alcohol and Other Drugs (ESPAD) shows that 32% of Croatian students aged 15 to 16 smoked in the month preceding the survey.
Eurobarometer data also ranks Croatia among the highest nicotine consumers in the European Union, with 36% of the population using tobacco or nicotine monthly, trailing only Bulgaria and Greece.
