The consumption tax on electronic cigarettes, which was introduced by the government’s consolidation package, will begin to be collected today. On Sunday, the three-month transition period ended, when electronic cigarettes imported into the Czech Republic before the beginning of the year were viewed as taxed. Excise duty is set at 2.50 crowns per milliliter of electronic cigarette filling. It will increase in the following years.
The government introduced an excise tax on electronic cigarettes at the same time as increasing the excise tax on traditional tobacco products. According to the cabinet, taxation is in line with the principles of public health protection and the fight against addiction. At the same time, the adjustment should improve the revenue side of the state budget. The Ministry of Finance anticipates that the increase in consumption tax on tobacco products will result in an overall increase in tax collection by 3.8 billion crowns this year.
Last year, 53.1 billion crowns were collected for consumption tax on tobacco products, 6.2 billion crowns less year-on-year. The Ministry of Finance explained the reduction in collection by a change in the preferences of users of tobacco products, who were moving from traditional cigarettes to electronic cigarettes.
Excise duty on e-cigarettes should increase steadily over the coming years. Until 2027, its rate will increase every year by 2.50 crowns per milliliter of filling, in 2027 it will amount to ten crowns per milliliter.
