According to Fakt on July 10, the Polish Ministry of Finance and the Ministry of Health have been signaling that the excise tax on tobacco products will be adjusted soon, and plans to gradually increase the tax rate. It is expected that by 2025, the excise tax on tobacco products will reach a new high: 25% for cigarettes, 38% for hand-rolled cigarettes, 50% for innovative tobacco products, and 75% for vapes. This huge change has caused a shock in the industry.
In the next three years, the excise tax on all tobacco products in Poland will increase accordingly, with a total increase of 60% for cigarettes, 90% for hand-rolled cigarettes, 85% for innovative tobacco products and 150% for vapes. It is estimated that by 2025, such an excise tax adjustment will make the price of the cheapest pack of cigarettes reach 20 zlotys (about US$5.09); and vapes are expected to see a sharp increase in excise tax of 75%, 50% and 25% respectively from 2025 to 2027.
Łukasz Kozłowski, chief economist of the Polish Federation of Entrepreneurs, also recorded his doubts about the Ministry of Finance’s considerations on the X service (original Twitter). He pointed out that the government’s move violated Article 11 of the Coalition Agreement, which stipulates that tax changes must be notified at least six months in advance, but now the government has notified them that they need to face additional consumption tax increases in a shorter period of time.
The Ministry of Finance believes that Poles will not stop smoking, but will turn their attention to the gray market and smuggled products.
Faced with such changes in consumption taxes, as an vape manufacturer, Veehoo vape can take the following measures to respond:
1. Provide high-quality and diversified products: Veehoo vape can further improve the quality and diversity of its products to attract more consumers to choose its products. Through continuous research and development and innovation, providing vape products that meet market demand can help them remain competitive in a highly competitive market.
2. Strengthen market publicity and education: Faced with the increase in consumption taxes, Veehoo vape can increase market publicity and education efforts to convey the advantages and value of vapes to consumers. By promoting the smokeless, tar-free, and second-hand smoke-free features of vapes, consumers can be helped to better understand the health and environmental advantages of vapes, thereby increasing their market share.
3. Seek compliant and legal channels: Veehoo vapes can work with relevant agencies to ensure that their products comply with the latest regulations and tax requirements. By working with relevant departments to establish transparent and compliant channels, it will help reduce the existence of gray markets and smuggled products, while enhancing consumers’ trust in Veehoo vape products.
4. Explore new markets and diversify businesses: In the face of the adjustment of Poland’s tobacco consumption tax, Veehoo vapes can consider expanding new markets and diversifying businesses. For example, they can seek to enter other countries’ markets and introduce products to other countries’ markets by working with local partners. At the same time, they can also explore cooperation with other related industries, such as health promotion agencies and smoking cessation assistance services, to expand their business scope.
In the face of the adjustment of Poland’s tobacco product consumption tax, Veehoo vapes, as a well-known manufacturer, can adapt to this changing market environment by providing high-quality products, strengthening market publicity and education, seeking compliant channels, and exploring new markets and diversifying businesses. Such efforts will help Veehoo vapes remain competitive in the international market and meet consumer needs.
Tags: Polish tobacco product excise tax，Polish vape tax increase，veehoo vape