Slovakia Passes Amendment: Consumption Tax Will Be Levied On E-cigarettes And Nicotine Bags From Next Year
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Slovakia passes amendment: consumption tax will be levied on e-cigarettes and nicotine bags from next year
The Slovak National Parliament passed an amendment to include e-cigarette oil and nicotine bags in the scope of tobacco product excise tax, and to increase the tax rate year by year to increase state fiscal revenue and stabilize the public budget.
According to Slovak TV and Radio on September 11, e-cigarette oil, nicotine bags and other nicotine products will be included in the scope of tobacco product excise tax from next year. In addition, this tax rate will be gradually increased in the next few years. This is one of the main contents of the amendment to the "Tobacco Product Excise Tax Law" passed by the Slovak National Parliament (NR) on Wednesday (11th).
The goal of this legal amendment is not only to label products related to tobacco products, but also to set a clearance period for unlabeled products. The law also aims to improve the circulation monitoring of tobacco products and smokeless tobacco products, and expand the definition of smokeless tobacco products to chewing tobacco and snuff.
The Slovak Ministry of Finance said that these measures are aimed at reducing the high public fiscal deficit and national debt, and increasing additional revenue for the national budget through relevant measures, thereby stabilizing public finances. These changes will bring 15 million euros to the national budget next year, 126 million euros in 2026, and 180 million euros in 2027.
The Ministry of Finance also mentioned that since these new tobacco products have only been on the market for a short time, it is difficult to prove that they are less harmful based on existing evidence. Especially among young people, the public health expenditures that may be caused in the future cannot be estimated, and the public's lack of awareness of the potential health risks of these products is also a problem.
According to eKasa data, the consumption of new tobacco products increased significantly from January 2022 to December 2023. E-cigarette sales increased by 200% year-on-year, and nicotine pouch sales increased by 57%. The Ministry of Finance proposed the introduction of a transaction record system, including remote sales monitoring. The supervision of goods related to tobacco products will be the responsibility of customs.
In the final vote, MPs rejected the amendment proposed by Marián Viskupič, who proposed a lower tax increase than the government's proposal. He wanted the tax increase to be in line with the increase in cigarette taxes, and the various provisions of the amendment would take effect gradually this year and in the following years.
