Piotr Zieliński from the Vaping Association Poland warns that the proposed 75% excise tax increase on e-cigarette liquids will significantly boost the black market. He notes that the black market already accounts for roughly 50% of the sector. Polish producers are urging Prime Minister Donald Tusk to reconsider the decision, pointing out that such a drastic tax hike will devastate small and medium-sized businesses.
Zieliński highlights that excise duties on e-cigarette liquids are not harmonized across the European Union, facilitating easy illegal imports from other countries. After the tax increase, the risk premium will rise, further fueling the black market. Legal products undergo rigorous testing in Poland, while illegal production operates without oversight.
Przemysław Jaskóła from Fusion Labs stresses that higher taxes will burden producers, potentially forcing some companies to relocate abroad. He finds it illogical that e-cigarette liquids face higher taxes than traditional cigarettes, particularly when other countries like the UK and Sweden take the opposite approach.
Agnieszka Majewska, spokesperson for Small and Medium Enterprises, criticizes the Ministry of Finance’s proposal, arguing that it violates the principle of legitimate expectations. She calls for a reduction in the planned tax hikes, citing the risk of increasing the black market and referencing a report by the Center for Social and Economic Analysis.
