Croatia to increase excise duties on tobacco and e-liquids from July 1, 2025

After a one-year hiatus, the Croatian government announced an increase in excise duties on tobacco and vaping products, to be submitted for public debate by the Ministry of Finance until June 20, 2025, and implemented from June 1.^er July 2025[1]A new draft regulation is currently under public consultation, according to the website Lider.hr.

This reform provides for an increase in taxes on cigarettes, rolling tobacco, cigars, cigarillos, heated tobacco, and, for the first time, liquids for electronic cigarettes.

Increase in excise duties on tobacco products and e-liquids

Thus, the specific excise duty on cigarettes will increase from €53.10 to €56.10 per 1,000 units. The proportional excise duty remains set at 34 % of the retail price. The minimum levy will increase to €124.20 per 1,000 cigarettes.

Other products that will increase include rolling tobacco and other smoking tobacco (including cigars and cigarillos), which will be taxed at €120.50 per kilogram, compared to the current €114.15. Heated tobacco will see its tax increase from €185.82 to €198.50 per kilogram.

Another major new development is the introduction of an excise duty on e-liquids used in electronic cigarettes. Although they are already regulated by excise regulations, they were not subject to any tax until now. From 1^er From July 2025, a duty of €0.20 per millilitre will be applied.

In the sights, fiscal and health gains for the country

According to government forecasts, this new tax structure should generate an additional 74.7 million euros for the state budget.

In addition to the tax benefits, the Ministry of Health also highlights the public health benefits by discouraging the consumption of tobacco and nicotine products.

Indeed, the results of the 2024 edition of the ESPAD (European School Survey Project on Alcohol and Other Drugs) survey, conducted among more than 100,000 adolescents aged 15 to 16 from 37 European countries, are worrying, with 32% of Croatian students reporting having smoked in the 30 days preceding the survey. In addition, the daily smoking prevalence stands at 20% in the country, one of the highest figures on the continent along with Bulgaria.[3]According to the Eurobarometer, while 25% of Europeans report consuming a tobacco or nicotine product at least once a month, the prevalence in Bulgaria (38% of Europeans), Greece (37% of Europeans) and Croatia (36% of Europeans) is the highest in these European Union countries.[4].

Croatia is also one of the fifteen European Union countries to have recently written to the President of the European CommissionUrsula von der Leyen, to demand taxes on e-cigarettes and nicotine pouches, which are still very affordable and target young people. Some countries, such as France and Belgium, have banned the sale or even use of "puffs," disposable electronic cigarettes, as well as nicotine pouches. Many countries in the EU and the WHO Euroregion currently allow these products to be sold.

©Generation Without Tobacco

AD

[1]Croatia Week, Croatia to increase excise duties on tobacco and e-cigarettes from 1 July, published June 12, 2025, accessed June 13, 2025

[2]Carina.gov, Manufactured tobacco – Excise duty rates, accessed June 17, 2025

[3]Tobacco-free generation, Europe: A decline in smoking among young people, threatened by the rise of new nicotine products, published May 27, 2025, accessed June 13, 2025

[4]Tobacco-free generation, Consumption and perception of tobacco and nicotine products in the EU, published August 6, 2024, accessed June 13, 2025

National Committee Against Smoking |