The Greek Ministry of National Economy and Finance has submitted draft legislation to apply excise taxes to smoke-free, non-tobacco nicotine products. The move closes regulatory gaps as consumers transition from combustible cigarettes to modern smoke-free alternatives.
Under the tax bill published by Economy Minister Kostis Hatzidakis, the Greek government shifts its fiscal strategy toward taxing active nicotine consumption rather than raw tobacco content alone. This approach mirrors previous measures that levied taxes on zero-nicotine e-cigarette liquids.
Tax Rates on Smoke-Free Nicotine Products
Major tobacco manufacturers, including British American Tobacco, recently introduced heated sticks using nicotine-infused tea leaves to bypass heavy tobacco levies. The new framework directly eliminates this exemption by equalizing tax categories.
| Product Category | Excise Duty Rate | Value Added Tax (VAT) |
|---|---|---|
| Non-Tobacco Heated Nicotine Sticks | €156.70 per kg | 24% |
| Heated Tobacco Consumables (e.g., IQOS) | €156.70 per kg | 24% |
| Oral Nicotine Pouches | €50.00 per kg (net substrate) | 24% |
Domestic industry executives welcomed the tax equalization, describing the updated bill as a stabilizing adjustment for the broader nicotine market.
Greek Tobacco Consumption Trends
Traditional cigarette sales in Greece have fallen by two-thirds over the past two decades. Annual consumption decreased from 32 billion sticks in 2002 (approximately 3,000 per capita) to 11.5 billion in 2021 (about 1,100 per capita).
While economic pressures following the 2010 financial crisis initially pushed consumers toward roll-your-own tobacco and illicit markets, recent consumer data highlights a rapid migration toward vapor products and heated tobacco units.
