Prague – The consumption tax rate on tobacco products is being increased today. It will be ten percent higher for cigarettes, cigars and smoking tobacco, and 15 percent for heated tobacco. Excise tax will now also be paid on electronic cigarettes. The measure is part of the government’s package to consolidate public finances.
According to tobacco companies, the change in consumption tax should be reflected in the price of a pack of cigarettes by about eight crowns. A pack of heated tobacco should become more expensive by roughly three crowns. In the case of electronic cigarettes, the newly imposed consumption tax will be paid from refills, for this year the rate is set at 2.50 crowns per milliliter. For nicotine sachets, the new consumption tax will amount to 0.40 kroner per gram.
Excise tax on tobacco products will also increase in the coming years. For cigarettes, cigars and smoking tobacco, it should increase by five percent each year until 2027. For heated tobacco, the tax rate will increase by 15 percent per year until 2027. By 2027, the tax for electronic cigarettes should increase to ten crowns per milliliter, and for nicotine sachets to 1.70 crowns per gram.
Last year, 53.1 billion crowns were collected for consumption tax on tobacco products, 6.2 billion crowns less year-on-year. The Ministry of Finance explained the reduction in collection by a change in the preferences of users of tobacco products, who were moving from traditional cigarettes to electronic cigarettes.
CR tobacco tax