Thanks to the virus lockdown’s economic collapse, state and local governments everywhere are experiencing a perfect storm of plunging tax revenues and increasing expenditures. Governments have learned that sin tax increases usually face less opposition than boosting other types of taxes. Today’s major tax bright spots are the sin taxes levied on alcohol, tobacco, marijuana and gambling. In addition to raising revenue, governments believe that high sin taxes will deter some people from drinking, smoking, partaking and wagering to excess.
In Poland, the tax on tobacco products, including cigarettes, will increase significantly. The European Commission is preparing the provisions on this matter. The changes may come into force early next year. Cigarettes in Poland are still among the cheapest in the entire EU but experts say that prices may increase to the EU level. Then, for one pack of cigarettes, smokers will have to pay about PLN 40-50.
In the other parts of the World, New York City for instance, a fully taxed pack of cigarettes costs around $15 (about PLN 58) because of extremely high state and city sin taxes.