Poland Case Study: Tax Increases, Raw Tobacco and Protecting Revenues

Poland has significantly reduced smoking prevalence from 28.8% in 2010 to 20.6% in 2025, supported by substantial tobacco tax reforms that raised excise duties well above the EU minimum. This policy note describes how complementary measures regulating raw tobacco and strengthening supply-chain control curbed tax evasion and illicit trade. Overall, the reform reversed the previous decline in excise revenues and provides a policy-relevant example of how higher taxation, combined with digital tracking, can improve public health while safeguarding government revenues.

Keywords: Illicit trade, Smoking, Tobacco, Taxation

JEL classification: H25, H26, L66

Countries covered: Poland