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Tax Gap of Heated Tobacco Products in Iceland
The law on tobacco and alcohol was amended (Official Gazette on December 30th, 2022) to adjust applicable excise rates for FY 2023. Heated tobacco is classified as “other tobacco” and taxed at ISK 32.45 (EUR 0.21) per g of tobacco.
The tax on cigarettes is ISK 583.8 per pack.
Sources:
- Act on the amendment of various laws regarding the budget for the year 2022
- Official Gazette
- Law on Alcohol and Tobacco Tax
Last updated Sept. 1, 2023