Czech Republic HnB tax is likely to be applied early next year

The Czech parliament is considering a bill to introduce an excise tax next year on heated tobacco products. Under the plan, the tax rate would be set at CZK2.236 (€0.09) per gram of tobacco.

A Ministry of Finance official told ECigIntelligence when the proposal was sent to parliament in June that no major problems were anticipated in the legislative process “because all parties concerned have already agreed with this proposal”.

The first reading of the proposal in the Chamber of Deputies took place on 23rd October, when the draft was sent to the Budget Committee.

Martin Lupa, head of external affairs at British American Tobacco (BAT) Czech Republic, which manufactures the heat-not-burn (HnB) product Glo, told ECigIntelligence the new tax could come into force in the first half of next year. But he said the industry hoped the tax rate might be decreased in the long term.