In 2023, the tobacco industry contributed PLN 38.6 billion (EUR 9 billion, USD 9.5 billion) to the Polish state budget, representing 8 percent of total tax revenues.
The report, entitled "The Impact of Tobacco Product Production on the Polish Economy," highlights Poland's dominance in tobacco manufacturing, both in market share and production value.
The country also ranks third in raw tobacco production within the EU, following Italy and Spain, with an 18.1-percent market share.
Exports play a significant role in the sector, with 85 percent of Polish-made cigarettes sold abroad, primarily to EU countries.
In 2023, the total export value of tobacco products and raw tobacco reached PLN 24.7 billion, marking a 26-percent increase compared to the previous year.
Around 3,500 farms in Poland cultivate tobacco, employing about 20,000 seasonal workers. When converted to full-time equivalents, the industry provides 28,900 jobs, with an additional 560,000 people indirectly connected to tobacco production and distribution.
The report notes significant growth in investment within the tobacco sector, reaching PLN 900 million in 2023—a 171-percent increase from the previous year and the highest level since 2020.
These investment projects focus on innovative tobacco products and the establishment of shared services centers that support production and distribution.
In 2023, excise and value-added taxes (VAT) on tobacco products generated PLN 37.8 billion in revenue across all levels of government.
CASE CEO Jan Hagemejer said that tobacco-related taxes are a substantial component of Poland's public finances.
Looking ahead, the report outlines challenges posed by evolving EU and Polish regulations.
Planned excise tax increases from 2025 to 2027 are expected to raise cigarette prices by 61 percent by 2027 compared to 2023. If annual tax increases continue at the current 10-percent rate, cigarette prices could more than double by 2030.
Additional taxes on e-cigarettes and novel tobacco devices are also under consideration, including a proposed PLN 40 excise on disposable e-cigarettes.
According to CASE experts, these regulatory measures aim to curb tobacco consumption, particularly among young people, while presenting both opportunities and risks for the industry.
(rt/gs)
Source: PAP, case-research.eu