The Slovak Parliament approved an amendment to the tobacco excise tax law on September 11, extending taxes to electronic cigarettes and nicotine pouches starting in 2025. This policy aims to generate state revenue to consolidate public finances and address rising youth nicotine consumption.
Slovakia faces a high public deficit and growing debt. The Ministry of Finance stated: “The draft law is part of consolidation measures, the implementation of which will ensure additional revenues for the state budget. This will contribute to the stabilization of public finances.”
Projected State Revenue Increases
The Ministry of Finance expects the new tax structure to generate growing revenues over the next three years as the tax rates rise progressively.
| Fiscal Year | Expected Budget Revenue |
|---|---|
| 2025 | €15 million |
| 2026 | €126 million |
| 2027 | €180 million |
Addressing Health Risks and Rising Sales
State data from the eKasa system shows rapid growth in alternative nicotine product sales between January 2022 and December 2023. E-cigarette sales grew by 200% year-on-year, while nicotine pouch sales rose by 57%. The ministry warned that these products are increasingly popular among younger demographics, raising concerns about future healthcare costs.
“Due to their short existence on the market, it is not possible to claim that these products are less harmful,” the ministry noted, pointing out that the general public remains largely unaware of potential health risks.
To combat tax evasion and monitor unregulated products, the law introduces a tracking system. All products must carry official tax stamps, and customs authorities will regulate distribution and distance sales. With this decision, Slovakia joins neighboring Visegrád Group (V4) nations—Poland, Hungary, and Czechia—which already tax various alternative nicotine products.
