Portugal to Raise Tobacco Tax Next Year, Zero-Nicotine Vaping Tax Draws Attention

  The Portuguese government has proposed a national budget for 2024 that is expected to raise tobacco taxes, with total expected revenue of €170 million, including expanded taxation on zero-nicotine e-cigarettes that has drawn widespread attention.

According to a report by theportugalnews on October 23, the Portuguese government's proposed national budget for 2024 is expected to raise tobacco taxes, with total expected revenue of €170 million, including expanded taxation on zero-nicotine e-cigarettes that has drawn widespread attention.

Previously, tobacco taxes were determined based on the price of tobacco, with higher-priced products incurring more tax. However, the new regulation changes the tax burden to be based on the nicotine content of each product.

Additionally, the government aims to "penalize" lower-priced products (such as small cigars or rolling tobacco) as they are more appealing to young people.

This decision also includes taxing nicotine-free e-cigarette products, as their consumption in Portugal has surged, potentially becoming an "entry point" for new smokers and posing public health risks due to the inability to effectively regulate these products.

According to the new tax rate, by 2024, the price of a pack of cigarettes could increase by 30 to 40 euro cents if the increased tax burden is passed on to consumers. As for small cigars, due to their lower price (around €2.50/3), the change in tax rates could double their price.

For flavored e-liquids, the current tax rate is 12.5%, which will increase to 25% if the liquid contains nicotine. For vaping devices, the current tax rate is 50%. As for rolling tobacco, which is an alternative when tobacco prices rise, the tax rate will be 75% of the regular cigarette tax rate.