Expensive Cigarettes and Alcohol

Time to Give Up?

Time to Give Up?

Excise on cigarettes and alcohol went up on the 1 January 2014. Despite this, price hikes will take place later. The Ministry of Finance (MF) estimates that the price of cigarettes will increase by PLN 1 per pack, while a half-litre bottle of vodka will cost around PLN 1.5 more. The increase in excise will see a 15% rise in tax on spirits. The Ministry states that excise on alcohol in Poland has not changed since 1 January 2009, when it went up by 9%. In the meantime, inflation has reached 15%, which according to MF means a loss of real tax revenue during this period. The change will bring in around PLN 780 million. Increasing prices may have an impact on consumers who may well drink less. This could also apply to cigarettes. However, one of the main reasons is pressure on Poland to come into line with the rest of the EU. “The price increases not only protect budget funds, but are also aimed at reducing the availability of tobacco products and alcohol as a way of implementing our health policy, which is in line with the WHO Framework Convention on Tobacco Control and the Law on the Protection of Health against the use of tobacco and tobacco products,” according to MF. The press office of MF clarified that cigarettes with the old excise will be sold until the end of February.

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