The Polish Ministry of Finance has proposed a significant 25% increase in the excise tax on tobacco products and their substitutes starting next year. This sudden shift in tax policy has alarmed tobacco producers, growers, and retailers, who argue that such an increase will severely impact their operations. The Ombudsman for Small and Medium Enterprises has also called for a delay, suggesting a new implementation date of January 1, 2026, to allow businesses time to adapt.
Industry Reacts to Regulatory Changes
The proposal deviates from the existing excise tax roadmap, which planned for gradual annual increases of 10% until 2027. The new plan includes a 25% hike on cigarettes, 38% on smoking tobacco, 50% on heated tobacco, and a staggering 75% increase on e-cigarettes. Industry representatives warn that these abrupt changes could undermine trust in the government and harm ongoing investments, creating significant economic uncertainty.
The proposed tax increases could drive more consumers to the black market, which had seen a historic low of 4.4% of the total market share in recent years. This concern is shared across the entire tobacco sector, including producers, employers, and trade unions. Additionally, over 25,000 people involved in tobacco farming could face financial ruin, exacerbating the challenges faced by Poland’s agricultural sector.