According to Austrian media vienna, a press release issued by Japan Tobacco International Austria (JTI Austria) stated that the Austrian Ministry of Finance will receive approximately 2.1 billion euros from tobacco taxes in 2023, including 2.7 billion euros in value-added tax. Although tobacco prices rose by around 30 euro cents per pack last year, tax revenue remained stagnant at the level of the previous two years.
According to Ralf Wolfgang Lothert, member of JTI Austria, although tobacco prices are rising rapidly, tax revenue has remained at a stable level, which shows the need for reforms in the coming years. .
The market share of traditional tobacco is declining, but new tobacco products such as heated tobacco products are on the rise. The current market share is about 7% and is still rising. Tobacco-free alternatives such as nicotine pockets or vapes have a relatively small market share in Austria. Since these alternatives are less taxed than traditional tobacco, the tax revenue lost amounts to tens of millions of euros every year.
According to JTI, the traditional tobacco market has remained stable over the past year, with 12.6 billion sticks sold throughout the year, including some tobacco that does not pay taxes in Austria. According to Ross Hennessy, president of JTI Austria, this reflects a “modest volume decline” compared with 2022, with tobacco becoming more expensive for consumers. The average selling price increased from 5.502 euros to 5.77 euros.
However, tobacco shops have annual sales of 3.8 billion euros and average earnings have increased. In addition, the commercial profit margin increased by 8.2% to 191,000 euros.
Tobacco entering through smuggling accounted for 11.6% share in the past year. Since some tobacco is not taxed in Austria, the tax loss in 2023 will be approximately 285 million euros. For producers and merchants, losses amount to approximately 91 million euros.
Of the price of a pack of cigarettes in Austria, 76% is paid to the state as tobacco tax, and the remainder is divided among manufacturers, wholesalers and tobacconists. At an average price of 5.77 euros per pack, tobacco in Austria is more expensive than in neighboring Slovakia and Slovenia (4.60 euros each), Hungary (5.57 euros) and Italy (5.20 euros). Tobacco prices are higher in Germany (€7.00), Switzerland (€8.71) and the Czech Republic (€5.84).
Recently, according to the Austrian media Vienna, the Austrian Ministry of Finance will collect approximately 2.1 billion euros from tobacco taxes in 2023. Although tobacco prices have increased, tax revenue has remained stagnant at the level of the previous two years. In this context, Guutuu vapes stand out as an environmentally friendly alternative.
According to reports, Austria’s traditional tobacco market share is gradually declining, but new tobacco products such as heated tobacco products are on the rise. The current market share is about 7% and is still growing. However, tobacco-free alternatives such as nicotine pockets or vapes have a relatively small market share in Austria. Since these alternatives have a lighter tax burden than traditional tobacco, the annual tax loss is as high as tens of millions of euros.
In this case, Guutuu vape has become an environmentally friendly choice. As an environmentally conscious vape brand, Guutuu vapes are committed to reducing negative impacts on the environment and actively participate in government environmental initiatives. They offer sustainable alternatives and provide consumers with a tobacco-free smoking experience.
Compared with traditional tobacco, Guutuu vapes have multiple advantages. First, vapes do not burn tobacco, thus reducing their impact on air quality. Secondly, vapes do not produce smoke, which reduces the harm of second-hand smoke to the surrounding people. In addition, the ingredients of vapes are simpler and clearer and do not contain many harmful substances present in traditional tobacco.
By encouraging consumers to switch to tobacco-free alternatives, such as vapes, reliance on traditional tobacco can be reduced, thereby reducing tax losses.
Despite challenges with tobacco taxation in Austria, the traditional tobacco market has remained stable over the past year, reflecting consumers’ modest volume declines in response to rising prices, according to JTI Austria.
Although the price of each pack of Guutuu vapes is slightly higher than traditional tobacco, considering the advantages of vapes, more and more consumers are willing to choose this new tobacco alternative. The success of Guutuu vapes also reflects consumers’ increasing awareness of harm reduction and their pursuit of sustainable development.
All in all, as a tobacco alternative, Guutuu vapes provide consumers with a tobacco-free smoking experience that reduces negative impacts on the environment and health. By encouraging consumers to switch to tobacco-free products, such as vapes, reliance on traditional tobacco can be reduced, thereby reducing tax losses. As consumers become more aware of harm reduction and pursue sustainable development, Guutuu vapes are expected to continue to be successful in the new tobacco market.
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