Polish parliament passes unified e-cigarette excise bill UD363, sending tax overhaul to president

Parliamentary passage and presidential review

Poland's parliament has completed legislative work on a comprehensive amendment to the excise tax act governing electronic cigarettes and vaporization devices. The Sejm passed the bill, based on government draft UD363, on 18 September 2026, and the Senate adopted it without amendments on 24 September with only 21 votes against in the parliament. The legislation now awaits the final decision of President Karol Nawrocki. This measure follows an earlier legislative attempt, UD308, which Nawrocki referred to the Constitutional Tribunal under preventive control on 2 July 2026 after its initial passage in mid-May. The Ministry of Finance introduced UD363 to establish a predictable, systemic framework for the industry rather than relying on piecemeal revisions.

Broadened definitions and closed tax loopholes

The new statutory provisions introduce a universal definition of electronic cigarettes that encompasses all vaporization devices regardless of mechanical build, heating technique, or powering components. Under previous rules, suppliers exploited regulatory discrepancies by unbundling device elements and selling heating components or power supplies separately to avoid tax liability. Deputy Finance Minister Jarosław Neneman stated that the draft directly resolves these circumvention strategies by imposing uniform tax treatment across all product categories. Lawmakers including Magdalena Łośko supported the legislation during debate, pointing out the necessity of eliminating fiscal disparities between competing market operators.

Excise duty is paid on e-cigarettes. It will no longer be the case that the bottom of a cigarette, which was unscrewed and heated liquids, was not subject to excise duty, or the top was not subject to excise duty, depending on whether it is disposable or reusable.

Adjusted tax rates and fiscal impact

The legislation establishes higher excise rates than originally projected across multiple product types. The excise tax on vaporization devices, parts sets, and multifunctional devices rises from an earlier planned 40 PLN to 50 PLN per unit. A matching 50 PLN levy applies to liquids in disposable electronic cigarettes, while the excise rate on e-liquid increases from 1.80 PLN to 2.20 PLN per millilitre. In contrast, cartridges for reusable vaporization systems are excluded from excise taxation. Official projections state that the redesigned tax structure will generate approximately 435 million PLN in annual public revenues while deterring consumers from sourcing untaxed goods of unknown origin.

Today we have a rational draft. We are not hunting for one technology, but creating broader definitions covering various types of e-cigarettes, cartridges, and vaporization devices, and attempting to establish uniform taxation rules.

Industry response and market stability

Business associations and economic experts have called for the prompt enactment of the law to curb the expanding grey market. Addressing the Senate Budget and Public Finance Committee on 22 September 2026, Michał Błaszczak, an analyst at the Union of Entrepreneurs and Employers, stated that the bill resolves critical regulatory gaps despite not fulfilling every industry proposal. Katarzyna Kreczmańska-Gigol, deputy director of the Institute of Finance at SGH Warsaw School of Economics, noted that the previous ambiguous definitions encouraged tax evasion, whereas uniform rules protect compliant firms and state revenue. Commercial entities, including Polish tobacco growers in the agricultural supply chain, are now awaiting the presidential decision.