Polish E-Cigarette Industry Faces Impending Taxation Crisis

Dec.11.2024
Polish E-Cigarette Industry Faces Impending Taxation Crisis
Polish e-cigarette industry faces steep taxes starting in July 2025, driving up prices and potentially jeopardizing market presence.

According to Biznes.Newseria on December 10th, Maciej Powroźnik, the chairman of the Polish e-cigarette employers' association, stated that starting in July 2025, e-cigarette devices in Poland will face a consumption tax of 40 złoty (10 USD) per unit, leading to an increase in the retail price of devices to around 80 złoty (20 USD). In the coming years, taxes on e-cigarette e-liquid will also significantly increase, potentially causing e-cigarettes and related products to disappear from the market. This change is expected to benefit traditional tobacco products and large tobacco companies, while local small and medium-sized enterprises will suffer losses.


According to data from the Ministry of Health, the number of e-cigarette related companies entering the Polish market has rapidly increased from 87 in 2020 to 4430 in 2023, with the majority being imported disposable e-cigarette devices.


Currently, e-cigarette devices are not subject to a consumption tax, but the Ministry of Finance plans to change this through a new amendment to the law. This proposal will take effect in April 2025 and implementation will begin in July. This change will categorize e-cigarette devices as non-harmonized tax products, with a tax rate of 40 Zloty (approximately $10).


It is expected that the new regulations will severely impact e-cigarette liquid by increasing taxes. The cost to consumers for the finished product is expected to continue rising over the next few years, eventually reaching 1.8 euros per milliliter (0.45 US dollars), making it the highest tax rate within the European Union.


Some industry insiders point out that this may lead to traditional cigarettes regaining the dominant position in the market, while the e-cigarette industry is mainly dominated by local small and medium-sized enterprises. Therefore, changes in policy may potentially deal a heavy blow to local businesses.


The new tax policy will have a significant impact on the e-cigarette industry in Poland, with some businesses possibly unable to bear the increased financial pressure. Although the Ministry of Finance is aware of the potential risk of business closures, it still emphasizes the need to take measures to enter other markets or transform in order to continue operating.


Although the Ministry of Finance hopes that the new policy will bring substantial fiscal revenue, industry insiders predict that achieving fiscal objectives will face significant challenges due to the shrinkage of the market and consumers turning to illegal channels. According to existing data, the illegal market may expand to occupy a 50% share.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

FDA Grants MRTP Orders for 20 ZYN Nicotine Pouches
FDA Grants MRTP Orders for 20 ZYN Nicotine Pouches
The U.S. Food and Drug Administration (FDA) has issued modified risk granted orders to Swedish Match USA for 20 ZYN nicotine pouch products, allowing the already-authorized products to be marketed with a specific claim that using ZYN instead of cigarettes lowers the risk of mouth cancer, heart disease, lung cancer, stroke, emphysema and chronic bronchitis.
Jul.01
Italian Court Ends Six-Year Cigarette Excise Dispute, Rejecting Damages Claim
Italian Court Ends Six-Year Cigarette Excise Dispute, Rejecting Damages Claim
Italy’s Lazio Regional Administrative Court has dismissed an appeal by Italian Tobacco Manufacturing and Manifattura Italiana Tabacco over the cigarette excise calculation mechanism, upholding the minimum tax burden rules and excluding compensation for smaller tobacco operators.
News
Jun.26 by 2Firsts Perspectives
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
Spanish newspaper El Confidencial interviewed Fred Monteiro, Regional Director for Americas and Europe at British American Tobacco (BAT). Monteiro said BAT supports setting regulatory limits for nicotine products but opposes Spain’s proposed 0.99mg nicotine-per-pouch limit, arguing that such a restriction could affect adult smokers’ transition to alternatives. He said nicotine regulation should be based on scientific evidence and harm reduction principles. Monteiro also said smoke-free products now account for around 25% of BAT’s Americas and Europe business and nearly 30% of its Europe business
BAT
Jul.30
Research | Swedish Study Finds Oral Lesions in 79% of Examined Nicotine Pouch Users, With Distinct Tissue Responses
Research | Swedish Study Finds Oral Lesions in 79% of Examined Nicotine Pouch Users, With Distinct Tissue Responses
A new Swedish study found oral mucosal lesions in 79% of examined nicotine pouch users and 89% of tobacco-derived snus users, with different tissue-response patterns between the two categories. For manufacturers and regulators, the findings shift attention toward product formulation, flavouring, pouch materials and local oral exposure, not only whether a product contains tobacco. The study found no higher prevalence of caries or periodontal disease, but it could not establish causality, long-term outcomes or differences between individual products or designs.
Special Report
Jul.27
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
According to China Customs export data analyzed by 2Firsts, China’s vape export mix continued to evolve during January-May 2026. Exports of electronic vaporisation devices (HS 85434000) increased 13.00% year on year, supported by growth in both shipment volume and average export prices. Meanwhile, exports of nicotine-containing non-combustible products (HS 24041200) declined 6.89%, with lower shipment volumes partly offset by higher average export prices.
Special Report
Jun.30
Japan’s Heated Tobacco Tax Changes Reshape Consumer Choices, Survey Reveals Impact of Price and Income
Japan’s Heated Tobacco Tax Changes Reshape Consumer Choices, Survey Reveals Impact of Price and Income
A consumer survey by Japanese heated tobacco information platform RELAZO found that rising tobacco prices and planned heated tobacco tax changes may influence smoking decisions among Japanese consumers. The survey covered 49,879 men and women aged 20 to 69 nationwide. It found that around 40% of respondents cumulatively indicated they may consider quitting when a pack reaches ¥600 (approximately US$4.1), while nearly 90% expressed potential quitting intentions at a ¥1,000 (approximately US$6.8) price level. The survey also found significant differences by income level, with lower-income respondents showing greater sensitivity to price increases.
Jul.24