The increase in tobacco products may significantly affect their prices. – Changes will result in tightening obligations and rigors in trade of tobacco related products. Producers and representatives of the tobacco industry alarm, that such changes may have serious consequences – both for the legal market, and in the context of increasing grey zone – explains attorney Kamil Gądek from Law Law Chalas and Company.
Changes in law in 2025 year
From January 2025 year the new legislation of anti-tobacco, which will further strengthen regulations on tobacco products and their derivatives. According to the new legislation it will be completely banned any form of promotion of e-cigarettes, including advertising on the internet and locating product on social media. In addition, all tobacco products, including e-cigarettes and devices that heat tobacco, will have to be sold in unified packaging without logo
and clear branding.
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Changes in acquis.”The government will solve the problem, which
its self creates”
The new law predicts also harsher sanctions for entrepreneurs, who break the prohibition on sale of tobacco products to persons under 18 years of age. Higher punishments are also provided for trade of tobacco in public places. The purpose of these changes is to decrease the attractiveness of tobacco products, especially among young people, and to restrict their availability in informal channels of sale.
Increase acquisition: benefit or risk?
Another essential element of the changes is the fact, that in 2025 the year the excise on tobacco products and e-cigarettes is to increase by some percent. From the viewpoint of the budget state this is a beneficial change – higher influences can fund the health service or other public sectors. The problem however in that higher prices may discourage some consumers from illegal purchases, directing them to illegal sources, which in consequence may increase the share of the grey zone.
According to Poland.The Tobacco Industry Association (PSPT), Poland already is struggling with the high share of illegal trafficking in tobacco products. Increase of excise may only exacerbate this problem, decreasing at the same time the tax revenues, which would be designed to fund the mentioned objectives. In effect new regulations, though from one side have a opportunity to improve public health, they may also bring challenges related to their effective enforcement and prevention of gray status.
Trade under pressure
Increasing prices of tobacco products will significantly affect the trade situation, especially at the retail level. Small shops, for whose sales of cigarettes and e-cigarettes constitute a significant part of income, may perceive a pronounced decrease in turnover. This situation will be especially distressing in border regions, where already there are many illegal channels of distribution. On the country scale this could lead to reduction of jobs in the trade sector.
Additionally, tightened regulations and increased prices may force smaller shops to restrict assortment of tobacco products. For many of these, especially in regions with limited demand for other products, loss of customers buying cigarettes may mean the necessity of closing their business. Tobacco corporations also expect negative consequences in the form of declining sales, which from the bottom may transfer to reduction of expenditures on marketing and potential limitation of support to distributors. Such actions may affect the whole industry, including the relationship between producers and retailers.
Smoking papers a social expectations – what will change new regulations?
Government regulations concerning restrictions on smoking in public places are exploiting for sile. The restrictions already cover not only traditional cigarettes, but also and the popular e-cigarettes and devices that heat tobacco. In effect the space available to smokers will be successively reduced.
Extension of the smoking ban
In Poland the smoking ban in public places has been in effect since 2010 , and its observance has significantly strengthened in the last years. New regulations have a purpose to include in this list e-cigarettes, which until this time were treated with more liberality. In the legislator’s opinion, these products, although less harmful to health than traditional tobacco products, still carry risks related to addiction. They mightAlso have negative impact on person and underage, being treated by non people as symbol of social status.
Educational dimension of new legislation
Extension of prohibition has also character educational. The legislator emphasizes, that increasing the number of zones free from tobacco smoke and aerosol from e-cigarettes may restrict social acceptance of this habit, especially among young people. Health organizations point out, that restricting the possibility of smoking traditional and electronic cigarettes in public space significantly decreases the attractiveness of reaching for it, especially among people just considering starting smoking. The introduction of these regulations is part of a strategy to reduce the number of people addicted to nicotine and protect public health, both through prevention, as and education activities.
How to find the gold measure?
The balance between protection of public health and freedom of business requires balanced actions, that will reduce the harmfulness of smoking and minimize negative economic effects. Key factors are to be:
Education and prophylaxis: investing in campaigns to raise awareness about the harmfulness of smoking, especially among youth, may effectively reduce interest in smoking.
Fight against the gray zone: strengthening the actions of customs and tariff services, and also sanctions against illegal sellers, may significantly reduce losses resulting from illegal trafficking in tobacco products.
Stepped increase of taxes: smaller and more distributed over time increase of taxes can minimize jumping changes in prices and their negative effects on the market.
Support for retail trade: small shops and retailers should be covered by support programs, which will help them adapt to changes. An example might be subsidizing alternative sources of income, such as selling organic products or healthy food.
Monitoring effects of regulations: it is necessary to systematically examine the effects of implemented regulations and preparedness to revise them in the event of unforeseen social or economic consequences.
New regulations are a challenge for the tobacco industry, trade and consumers. Although the main goal – improving public health – is commonly recognizedasright,itisnecessarytoconsidera broadspectrumofconsequences.Dialoguebetweengovernment,representativesofindustryandsocialorganizationscanhelptodevelopacompromise,thatreducessmoking,withoutleadingtodrasticeconomiceffects.ChangingthehabitsofPolandintheuseoftobaccoproductsshouldproceedinawaytakingintoconsideringtheneedsofallsocialgroups-bothconsumers,asandentrepreneurs.Taking aflexibleapproachtoimplementedregulationswillallowtoadapttochangingrealitiesandensuretheireffectivenesswithoutexcessiveeconomic losses.
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