Croatia to increase excise duties on tobacco and e-cigarettes from 1 July

ZAGREB, 12 June 2025 – After a year-long pause, the Croatian Government has announced an increase in excise duties on tobacco products, alongside the introduction of a new tax on e-cigarette liquids, effective from 1 July 2025.

As Lider.hr reports, a new draft regulation on tobacco excise duties is currently undergoing public consultation.

The proposed changes will see higher excise taxes on cigarettes, fine-cut tobacco, cigars, cigarillos, heated tobacco, and – for the first time – e-liquids used in electronic cigarettes.

Cigarette Excise Duty Increases

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

Rise in Taxes on Other Tobacco Products

The new regulation also raises excise duties on other smoking products:

• Fine-cut tobacco and other smoking tobaccos (including cigars and cigarillos) will be taxed at €120.50 per kilogram, up from €114.15.

• Heated tobacco products will see a rise from €185.82 to €198.50 per kilogram.
• ‘New tobacco products’ will also be taxed more, increasing from €114.15 to €120.50 per kilogram.

New Tax on E-Cigarette Liquids

In a notable change, excise duty will now apply to e-liquids used in electronic cigarettes (vapes). Until now, they were classified under excise regulations but carried no tax. From 1 July, a duty of €0.20 per millilitre will be imposed.

According to government projections, the new excise structure will bring an additional €74.7 million into the state budget. Tobacco excise duties remain one of Croatia’s most reliable and significant sources of revenue due to steady consumption levels.

Beyond fiscal impact, the government also highlights public health benefits.