Taxing E-cigarettes

Taxing Tobacco?

Taxing Tobacco?

Advisors at the Polish Chamber of Commerce are proposing the taxation of e-cigarettes and new tobacco products. Manufacturers are outraged, as reported by Puls Biznesu. It is claimed that ‘regular’ cigarette smokers are economic patriots. Every year they produce revenue for the budget amounting to more than PLN 23 billion from excise and VAT levied on cigarettes. However, this is falling mainly due to the flourishing grey market, but also because smokers are moving to nicotine replacements, in particular e-cigarettes, which are not subject to excise. A report was prepared by CASE advisors on behalf of the National Chamber of Commerce, in which the authors clearly propose the imposition of excise on e-cigarettes and refills. The manufacturers of these products are outraged. They use the example of Italy, which introduced similar regulations. After the introduction of excise on e-cigarettes, prices jumped significantly, the number of e-cigarette smokers decreased resulting in a significant decline in employment in the industry.
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