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Excise duty on tobacco – which products are subject to excise duty and how much is the duty?

Manufacturers and importers of tobacco products pay excise duty on products that are manufactured in Finland or that are sent or transported from other EU countries or non-EU countries and received in Finland. Excise duty must be paid when products are imported to Finland or released for consumption from the duty suspension arrangement. 

When a tobacco product is released for consumption in Finland, the product’s retail price must be indicated on the sales package. The price affects the amount of excise duty.

Products subject to excise duty

Products subject to excise duty include

  • cigarettes
  • cigars and cigarillos, even when made partly of materials other than tobacco
  • pipe and cigarette tobacco
  • cigarette paper, including filter tips under Customs tariff heading 4813
  • other products made entirely or partly of tobacco and intended to be smoked, nasally inhaled, sucked or chewed
  • fine-cut rolling tobacco
  • unprocessed raw tobacco sold in retail directly to consumers
  • cigars and cigarillos made partly of materials other than tobacco
  • products comparable to cigarettes and pipe and cigarette tobacco made entirely or partly of materials other than tobacco but considered tobacco products by law
  • electronic cigarette liquids (with or without nicotine).
  • heated tobacco products
  • smokeless nicotine products in liquid form
  • smokeless nicotine products in non-liquid form, such as nicotine pouches

How much is the excise duty on tobacco?

The amount of excise duty on tobacco is determined according to the excise duty table for tobacco.

  • The amount of excise duty is based on the retail price of the product.
  • In addition, cigarettes, cigars, cigarillos, pipe and smoking tobacco, fine-cut rolling tobacco, and smokeless nicotine products in non-liquid form are subject to excise duty payable per unit of product.
  • However, the amount of excise duty payable for cigarettes, cigars, cigarillos, fine-cut rolling tobacco and smokeless nicotine products in non-liquid form is always at least the minimum duty indicated in the excise duty table.
  • Electronic cigarette liquids, heated tobacco products, and smokeless nicotine products in liquid form are only subject to excise duty payable per unit of product.
  • As for other tobacco-containing products and cigarette paper, excise duty is paid only per unit of product based on the retail price.

Amount of excise duty on tobacco, and excise duty table 

Example: A company imports 25 kg of pipe tobacco to Finland on 1 January 2024. The retail price is €10,000. Excise duty per unit of product: 25 kg x €107.50/kg = €2,687.50. Excise duty based on retail price: €10,000 x 0.48 = €4,800. The excise duty is €7,487,50 in total.

Terminology related to excise taxation on tobacco

  • Retail price: the price at which the company sells the product to customers in Finland, including all taxes and additional charges. The retail price can be freely determined by the company.
  • Excise duty per unit: excise duty calculated based on the number of products, kilograms or millilitres.
  • Value-based excise duty: excise duty based on the product’s retail price.
  • Minimum excise duty: the amount of excise duty payable for cigarettes, cigars, cigarillos, fine-cut rolling tobacco and smokeless nicotine products in non-liquid form is always at least the minimum duty indicated in the excise duty table.
  • Taxable value confirmed by the Tax Administration: weighted average of the retail price, or average retail price. The taxable value is used in cases such as non-commercial imports if corresponding products are not sold in Finland. This applies to products imported or ordered by private individuals.

Products exempt from excise duty

Excise duty does not have to be paid for example on the following products:

  • tobacco products of which tobacco products are made
  • tobacco products handed over to authorities as samples
  • other tobacco-containing products and cigarette paper that an authorised warehouse keeper delivers for consumption in EU countries other than Finland.

Excise duty does not have to be paid when the products

  • are moved under the duty suspension arrangement
  • are placed under the Customs warehousing or export procedure
  • are intended for sale or consumption on board a ship or an aircraft operated professionally in international traffic (delivery to vessel, or victualling)
  • are provided for other tax-exempt purposes, such as for diplomats, consuls or international organisations based on a diplomatic relationship (‘sales to diplomats’).

How to pay excise duty

You can submit an advance notice and file and pay excise duty in MyTax.

How to file and pay excise duty on tobacco 

Advance notice and one-off guarantee in excise taxation – companies

Go to MyTax

You can also file an excise duty return with a paper form. However, you cannot file on paper unless you have a special reason for doing so. Special reasons include situations where it is not reasonable to expect that the taxpayer could file electronically. An example is a situation where electronic filing is not possible due to technical problems. The special reason does not need to be reported to the Tax Administration.

Excise duty return forms

Smokeless nicotine products are subject to excise duty on tobacco

On 1 January 2024, new product groups are added to the act on the excise duty on tobacco: smokeless nicotine products in liquid form and smokeless nicotine products in non-liquid form. The product groups include nicotine pouches and any corresponding products that may come to market later. 

Smokeless nicotine product refers to a product for oral or nasal use which does not contain tobacco and to which nicotine has been added. Smokeless nicotine products that are governed by the Medicines Act are not considered tobacco products.

Smokeless nicotine products are subject to excise duty on tobacco as of 1 January 2024.

Note: Excise duty on tobacco must also be paid on smokeless nicotine products in non-liquid form if they have been imported after 9 October 2023 and are still being sold on or after 1 July 2024. The excise duty applies to products outside a duty suspension arrangement. In these cases, the seller who has the products in their possession on 1 July 2024 is liable for paying the duty.

When you pay the excise duty on tobacco for tax period 7/2024, file and pay the duty on these products as well.

Excise duty on nicotine products

The excise duty on tobacco is determined according to the excise duty table for tobacco.

Non-liquid products are subject to excise duty on value and excise duty per unit. The excise duty on value is 10% of the product’s retail price, and the excise duty per unit is 10 cents per gram in 2024. The excise duty is always at least 14 cents per gram.   

Smokeless nicotine products in liquid form are only subject to excise duty per unit, which is 30 cents per millilitre in 2024.

Manufacturer’s and importer’s excise duty authorisation

A product manufacturer or importer needs an excise duty authorisation granted by the Tax Administration in order to operate under a duty suspension arrangement and to be treated as a regular taxpayer in excise taxation.

You can request an authorisation in MyTax. Go to MyTax

No excise duty authorisation

Importers, manufacturers and sellers with no excise duty authorisation are casual taxpayers regarding all products they have received or manufactured on or after 1 January 2024. 

The seller is liable to pay excise duty on tobacco if, for example, after 1 July 2024 they sell smokeless nicotine products in non-liquid form which were imported between 9 October and 31 December 2023 and for which no excise duty has been paid yet.

Packaging must convey price information

Packaging of smokeless nicotine products must convey price information in the same way as other tobacco products. This also applies to smokeless nicotine products imported or manufactured in Finland between 9 October 2023 and 31 December 2023 and subject to excise duty as of 1 July 2024.

Electronic cigarette liquids are subject to excise duty

Excise duty must be paid on electronic cigarette liquids. Excise duty is payable on products that are intended for use in electronic cigarettes either as such or mixed with other liquids.

Excise duty is payable on electronic cigarette liquids with and without nicotine, base liquids (such as propylene glycol and vegetable glycerine or combinations of these) and flavour liquids.

Excise duty must be paid on non-nicotine base and flavour liquids if they are intended for use as electronic cigarette liquids.

The amount of excise duty on tobacco is determined according to the excise duty table for tobacco. The excise duty on electronic cigarette liquids is 0.30 cents/millilitre.

An advance notice must be submitted on electronic cigarette liquids, smokeless nicotine products and cigarette paper

When products that are subject to national excise duty and that have been released for consumption in another EU Member State are imported to Finland, an advance notice must be submitted to the Tax Administration. The obligation to submit an advance notice concerns the casual import and receipt of cigarette paper, electronic cigarette liquids and smokeless nicotine products, for example.

You can file the advance notice and pay the excise duty in MyTax.

Go to MyTax

Further information

Page last updated 2/5/2024