EU plans higher tobacco excise and new nicotine taxes; Poland says no new price hikes at home

In brief

• The EU wants higher minimum excise rates on tobacco and wants to tax e-cigarettes, heated tobacco and nicotine pouches.
• Poland supports the changes, and Finance Minister Andrzej Domański says they will not raise prices of these products domestically.
• For retailers, the key question is whether the new minimum rates will change shelf prices.

EU proposal on tobacco excise

The European Union is pushing to raise minimum excise rates on tobacco products and to bring further nicotine goods under the tax, including e-cigarettes, heated tobacco and nicotine pouches (UE: Domański: unijne zmiany nie wpłyną na ceny wyrobów tytoniowych w Polsce – dlahandlu.pl). Poland supports the direction of the changes.

What the minister says about prices

Finance Minister Andrzej Domański has stated that the agreed EU measures will not lead to higher excise rates in Poland. He argues that the changes will not translate into further price increases for these products on the domestic market (UE chce wyższej akcyzy na tytoń. Minister mówi o cenach w Polsce – portalspozywczy.pl).

Scope of the planned changes

The proposal would cover traditional cigarettes as well as products that have so far been largely outside excise rules. Nicotine pouches and heated tobacco would become taxable under the common framework, which would harmonise treatment across member states.

Context for the market

For retailers and distributors, the key question is whether the new minimum rates will be applied in a way that changes shelf prices. Domański's position is that the EU measures will not trigger additional excise increases in Poland.