The Polish Senate has cleared a controversial amendment to the excise tax law, accelerating tax hikes on e-liquids and heated tobacco products. This legislative push, designed to curb youth vaping and generate an additional 3.5 billion PLN annually for the state budget, has sparked severe backlash from industry leaders who warn of a massive shift toward the untaxed grey market.
Under the new regulations, the excise tax on e-liquids will eventually skyrocket to 327% of its current value, alongside new taxes on vaping devices and spare parts. Przemysław Jaskóła, vice president of the Vaping Association Polska, warned that weekly costs for users could jump from 15 PLN to 65 PLN, making smoke-free alternatives financially out of reach for many.
The scheduled excise tax increases will be phased in over three years, targeting various tobacco and nicotine alternatives:
| Product Category | Year 1 Increase | Year 2 Increase | Year 3 Increase |
|---|---|---|---|
| E-liquids | +75% | +50% | +25% |
| Heated Tobacco (Novel Products) | +50% | +20% | +15% |
| Traditional Cigarettes | +25% | +20% | +15% |
Industry representatives argue that these drastic hikes will backfire by expanding Poland’s already rampant vape grey market, which currently commands half of the total market share. “Planned regulations may further expand the illegal market, lowering state revenues instead of increasing them,” Jaskóła noted, adding that minors will continue to access unregulated, dangerous products from illicit sources.
The tax hike is expected to hit domestic small and medium enterprises (SMEs) the hardest. Legal Polish manufacturers may be forced out of the market as their customer base migrates to untaxed, unregulated channels, exposing consumers to unchecked health risks from black-market products.
