Government slaps 2% on the price of cigarettes

The government has decided to hike the price of tobacco by 2% from next year and will alter the colour of the seal stamp from green to bordeaux according to a dispatch published in the Republic circular Diário da República – a seal that is essential a proof of quality and legality of the product.

Therefore, the cost that will have to be borne by tobacco companies (and will be passed on to consumers), will go from €0,00532 to €0,00544 in the case of non-stick seals, and rises from €0,03752 to €0,03835 for the sticker version according to the law signed by the Secretary of State for Fiscal Affairs, Cláudia Reis Duarte.

“The amount corresponding to the unit price of the special stamp for products subject to tobacco tax, […] for the 2026 financial year, is set at €0.00544 and €0.03835, respectively, for the non-adhesive version and for the adhesive version,” the same order reads.

“This increase may then be reflected in the price to be charged to the final consumer,” warns tax expert António Brigas Afonso, a specialist in excise duties, in statements to the online business news source ECO.

Image: Elsa Oloffson – Unsplash.