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View Full Version : Excise duty change in Poland



Makaron
05-11-2014, 10:31 AM
I have just read suggested changes to budget in Poland. Biggest change will affect cigars. At the moment excise duty is 50 per 1000 cigars. It will change to 80 per 1 kg.
This means 2000% increase in Excise Duty on cigars in Poland.
Those changes are result of tobacco companies selling "party" cigars which are just rolling tobacco in 10g sticks as you can see on attached picture.

20409

ValeTudoGuy
05-11-2014, 12:12 PM
Why do governments deal with things by such reactions. It's clear people are abusing a system.... Deal with them in a way that doesn't affect people who aren't taking the piss.

Makaron
05-11-2014, 12:42 PM
Someone found simple solution instead of fair one.
UE allow only Excise Tax category as Cigarillos and Cigars. Governments can't change it to something like hand made cigars. On the other hand best solution would be introduce minimal price per 1g of cigar or tobacco product, but this would require a lot of changes in law, and could be taken to court as unconstitutional. So simple change 280PLN per 1000 cigars to 390PLN per 1kg in Excise Duty solves government all problems, forgetting about fact that a lot of small businesses will simply close.

I would love to see cigar "riots" in Warsaw. Bunch of mostly guys smoking cigars next to Polish parliament and singing Cuban/Dominican/Nicaraguan and Honduras Anthems :D

Ryan
05-11-2014, 01:28 PM
Thanks for that. Very interesting to see what Big tobacco will create in order to fall into definitions.
It's a battle happening here at the moment. Cigar retailers are trying to get a derogation for premium cigars when plain packaging laws come in.
It's hard to define what a cigar is when companies are making what's shown in the picture above.
You can see why governments don't want to give any allowances for any type of tobacco.
Plain packaging here would be the end of cigar retail in Ireland, especially if it doesn't come into the UK for cigars.
Simply too expensive to do and remain profitable. Habanos won't do it and Hunters won't do it for 7-8% of their market.