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Tax Gap of Heated Tobacco Products in Portugal
Heated tobacco products were introduced in Portugal in 2016 with the launch of IQOS by Philip Morris International. In 2014, the Special Consumption Tax law was amended to create a new tax category for heated tobacco which went into effect in 2015 (Law no.82-B/2014). A heated tobacco product is defined as a “manufactured tobacco product especially prepared to emit a vapor without combustion of the tobacco mixture it contains” (Article 101 Paragraph 9). A mixed excise tax system is applied to heated tobacco products. As of 2023, the specific excise tax rate is EUR 89.6.7 per kg, the ad valorem excise rate is 15% of the retail sale price, and the minimum excise is EUR 272.36 per kg.
Portugal applies a mixed excise tax system on cigarettes. As of January 1st, 2023, the specific excise tax rate is EUR 112.5 per 1000 cigarettes, the ad valorem excise rate is 12% of the retail sale price. The calculation of the minimum excise is described in Article 101 of the code and is currently EUR 143.04 per 1000 cigarettes.
Sources:
- Special Consumption Tax Code (CIEC): with amendments
- Law no.82-B/2014: Amendment to the Special Consumption Tax Code, Budget year 2015.
- Tax rates applicable in Portugal for fiscal year starting Apr 1, 2023
- Taxes for economic activities in Portugal: Excise Duties
Last updated Sept. 1, 2023