Prices of nicotine products to surge in Czechia – but by how much?

A pack of cigarettes in Czechia will increase by at least CZK 8 on average in 2024 and prices of other nicotine-related products will also rise significantly due to the government’s austerity package, says global manufacturer Japan Tobacco (JT). By 2027, the average price of a pack of cigarettes in Czechia is set to rise by CZK 27 through taxes alone.

The government’s tax changes increase excise duty on cigarettes by 10 percent next year and then by 5 percent between 2025 and 2027. For heated tobacco, the excise duty is set to rise by 15 percent next year and will do so every year until 2027. This will drive up the price by CZK 3 next year and CZK 17 by end-2027, JT spokesperson Jiří Sochor says.

The newly introduced tax measures extend to e-cigarettes, where a consumption tax will now be levied on refills. Disposable e-cigarette products, usually holding 2 milliliters, will see their prices surge by a minimum of CZK 6 in 2024 and a substantial leap of CZK 24 by 2027 due to these taxes. 

Similarly, the cost of a 10-milliliter refill pack for e-cigarettes will escalate by at least CZK 30 in the upcoming year and is projected to soar by CZK 120 in the next four years. The government initially planned the tax on e-cigarettes to be higher, but in August rowed back on this plan. 

Moreover, the amendments extend to nicotine sachets, with a projected CZK 7 price hike on a standard pack of 20 from tax alone. A 30-gram pack of hand-rolled tobacco will see a minimum increase of CZK 13 next year. 

Hana Ross, an expert in the economics of excisable commodities from the University of Cape Town, said at a May press conference in Prague that cigarettes’ excise tax should be higher. Ross believes that the current price of cigarettes in the Czech Republic does not correspond to their harmfulness and healthcare costs.

The government’s aim – aside from generating revenue from the higher taxes – is to discourage people from smoking due to adverse health effects. Earlier this year, the government banned flavored heated tobacco sales. It also banned the sale of nicotine pouches to under-18-year-olds.

Furthermore, a new law prohibits any sales promotions related to nicotine products, including heated tobacco and e-cigarettes. The prohibition aims to counter instances where sellers bundle hard alcohol offers with cigarette purchases.