Croatia increased excise duties on cigarettes, tobacco products, and e-liquids from the start of the new year, pushing cigarette prices up by as much as €0.20 per pack, according to public broadcaster HRT. The government expects the tax hikes to generate nearly €130 million in additional revenue and says the measures are intended to curb smoking and nicotine use as part of its public health strategy.
Business groups cautioned against sharp increases, warning they could drive consumers toward the black market. Smoking remains widespread in Croatia, with about 900,000 smokers and high usage among youth, including e-cigarettes. Tobacco production also remains economically significant, with around 300 domestic producers accounting for roughly 6% of European output and generating about €400 million annually.