Croatia raises tobacco taxes, cigarette prices increase

Smokers in Croatia are facing higher costs from the start of the new year following an increase in excise duties on cigarettes, tobacco products and e-liquids.

The price of a packet of cigarettes has risen by up to 20 cents, while tobacco and vaping products have also become more expensive, HRT confirms.

The government expects the changes to generate almost €130 million in additional revenue.

Alongside the fiscal impact, authorities say the measures are aimed at improving public health by discouraging smoking and nicotine use.

While the price increases are intended to reduce consumption, business representatives have warned that sharp rises could have unintended consequences.

The Croatian Employers’ Association has stressed that excise duty increases should be gradual, as sudden price hikes may push consumers towards the black market.

Tobacco production remains an important part of Croatia’s economy. Around 300 domestic producers contribute approximately six per cent of total European tobacco production, with exports and related industry activity worth around €400 million annually.

Despite years of public health campaigns, smoking remains common in Croatia. Around 900,000 people smoke, with worrying trends among younger age groups.

Research shows that two out of five young adults smoke, while the use of e-cigarettes among teenagers is particularly high.

Around one-third of 15- and 16-year-olds reported using e-cigarettes in the month prior to the latest survey, underlining growing concerns about nicotine addiction among youth.

Each year, approximately 14,000 people in Croatia die as a result of smoking-related illnesses.