The Polish Ministry of Finance has unveiled a sweeping plan to drastically increase excise duties on cigarettes, e-cigarettes, and novel tobacco products. This sudden regulatory shift, announced during a closed-door meeting with industry representatives, will rapidly drive up retail prices and has triggered immediate criticism from the business community regarding a lack of preparation time.
Under the new proposal, traditional cigarettes will face a 25% tax increase, effectively ending the era of cheap tobacco in Poland as pack prices cross the 20 PLN threshold. However, alternative nicotine products will bear the heaviest fiscal burden over the next three years.
The Federation of Polish Entrepreneurs (FPP) expressed shock at the timeline. Critics pointed out that the sudden announcement violates the ruling coalition’s pledge to introduce tax changes with at least a six-month warning, leaving businesses scrambling to adjust.
| Product Type | First-Year Tax Hike | Total 3-Year Cumulative Hike |
|---|---|---|
| E-Cigarettes | 75% | 150% |
| Novel Tobacco Products | 50% | 85% |
| Smoking Tobacco | 38% | 90% |
| Traditional Cigarettes | 25% | 60% |
While the Ministry of Health champions these measures as essential public health interventions, the business sector warns of potential market destabilization. Further consultations regarding potential excise tax hikes on alcohol are expected to follow.
