Polish President Andrzej Duda has signed into law a major excise tax amendment that will trigger drastic price increases for the country’s smokers. This legislative move, targeting a nation where one in five citizens currently smokes, aims to curb tobacco consumption and generate billions in state revenue.
Under the new regulations, the excise tax on tobacco products will rise by 25% starting January 2025. According to Deputy Finance Minister Jarosław Neneman, prices will continue to climb over a three-year phase-in period, significantly raising the cost of smoking compared to current rates.
| Year | Estimated Price per Pack (PLN) | Tax Change Details |
|---|---|---|
| Current | 17.00 – 18.00 PLN | Baseline rates |
| 2025 | 20.00 PLN (Minimum) | 25% excise tax increase |
| 2026 | ~23.85 PLN | Phased excise adjustment |
| 2027 | 26.00 – 27.00 PLN | Final target price phase |
The tax hike also targets alternative nicotine products. E-cigarette users will face an excise tax of 1.80 PLN per milliliter of liquid, while cigars and pipe tobacco will see proportional increases. The government expects these adjustments to bring in an additional 3.5 billion PLN in annual budget revenue.
Despite these drastic hikes, Poland’s cigarette prices remain among the cheapest in the European Union, second only to Bulgaria. However, industry experts warn that the aggressive price increases could fuel the illicit tobacco market, which currently accounts for 3.6% of official sales.