#Budget2026: Expected Changes in Excise Duty and Their Potential Impact on Businesses

The Ministry of Finance has prepared draft amendments to the Law on Excise Duty, which are being submitted alongside the 2026 state budget and the medium-term budget framework projects. Although overall #Budget2026 does not include significant changes to the main taxes, several excise duty rates and exemptions are set to be revised.

The main objective of the excise duty is to reduce the consumption of harmful goods and encourage more environmentally friendly behavior. Therefore, most of the planned amendments relate to products affecting public health and the environment.

Key Proposals

Alcoholic Beverages
From 1 March 2026, the excise duty rate for strong alcoholic beverages is planned to increase by EUR 15 per 100 litres of absolute alcohol.
From 1 March 2028, the rate increase will apply to all alcoholic beverages, including beer.

Tobacco Products and Nicotine Goods
Between 2026 and 2027, a gradual increase in excise duty rates is planned for tobacco products, heated tobacco, tobacco leaves, electronic cigarettes and their liquids, as well as tobacco substitutes.
An additional rate increase is expected in 2028.

Non-Alcoholic and Energy Drinks
From 2028, the excise duty will rise for beverages with different sugar content as well as for energy drinks.
At the same time, excise duty exemptions will be clarified – they will apply only to non-carbonated, unpackaged non-alcoholic beverages prepared on-site in catering establishments for immediate consumption.

Fuel in Free Ports and Special Economic Zones
From 2028, the reduced excise duty rate on petroleum products used in free ports and special economic zones will be abolished. These products will instead be subject to the general excise duty rate.

Oceans Baltics’ View

At Oceans Baltics, we view these amendments as a logical continuation of the tax policy pursued in recent years, which focuses on public health and environmental objectives. However, it is important to note that for companies whose operations are related to excise goods, these adjustments may require a review of financial planning, pricing policies, and contractual terms.

Sectors that may be particularly affected include:

• the production and trade of alcoholic and non-alcoholic beverages,
• the tobacco and nicotine product market,
• and fuel suppliers operating in free ports and special economic zones.

In our view, it is advisable for businesses to assess in advance how the planned tax increases will affect production costs and final prices, and to prepare appropriate measures for cost control and pricing strategy.

Although the 2026 budget draft does not propose major changes to general taxes, the excise duty amendments indicate the government’s consistent approach — to promote a healthier lifestyle and more sustainable consumption. For companies, this is an opportunity to prepare in a timely manner and plan adjustments based on accurate data and scenario analysis.

Oceans Baltics will continue to monitor the progress of the budget-related legislation and will keep clients informed of any changes that may affect financial and tax accounting processes.

The draft law is available for review on the Legislation Portal.

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