CZECH REPUBLIC
A strict smoking ban that came into effect in pubs and restaurants around the country two months ago has caused smokers to turn their attention to heat-not-burn (HNB) products. Czech authorities have yet to set the norms for these products which fall somewhere between a classic and electronic cigarette.
Tough anti-smoking laws in force around Europe have led tobacco companies to hope that HNBs will see new opportunities arising. Some countries, such as Poland, Hungary, and Spain have already issued a tough ban on HNBs, putting them on par with regular cigarettes, but others like the Czech Republic have yet to lay down the rules.
The Czech health ministry says the anti-smoking ban should apply to HNBs as well, but others claim that under Czech law they would fall in the same category as e-cigarettes which are not banned in pubs and restaurants.
Currently, taxation of HNB products has not yet been decided at the EU level. The Czech finance ministry has also not addressed this issue yet. HNB tobacco products are for now exempted from consumer tax in the Czech Republic, which gives them an enormous advantage over classic cigarettes. In Germany, Portugal, or Slovakia consumer tax already applies to them, though it is a different rate than for regular tobacco products. In the Czech Republic an amendment to the law should clarify the status of HNBs by 2019.