What percentage of a cigarette pack's price is tax?

It is a very large share of the final price, but the exact proportion depends on the specific and ad valorem rates and the weighted average price in force that year, so we don't quote a figure here — check the Autoridade Tributária's own publications for the current year.

Does hand-rolling tobacco pay less tax than cigarettes?

It follows a comparable two-element structure but with separate rates set per gram rather than per cigarette, and its own minimum tax rule tied to a fraction of the cigarette minimum — so a direct comparison depends on the rates in force and isn't something we quote.

Where can I find the current tobacco tax rates?

The Autoridade Tributária e Aduaneira publishes the CIEC text and the annual weighted average price and tax stamp notices on its official customs information site.

Guide

How is tobacco taxed in Portugal?

Tobacco is one of the most heavily taxed consumer products in Portugal. This guide explains the structure of that taxation — not the current rates or prices, which change every year and which we do not quote.

Last checked: September 2026

In short

Tobacco products sold in Portugal carry the imposto sobre o tabaco (tobacco excise duty), set out in the Código dos Impostos Especiais de Consumo (CIEC), plus standard VAT (IVA). For cigarettes, the excise duty combines a specific element (a fixed amount per 1,000 cigarettes or per pack) and an ad valorem element (a percentage of the retail price), and the total cannot fall below a minimum reference tax recalculated each year from the weighted average price. Fine-cut tobacco for rolling cigarettes and other smoking tobacco follow the same two-element structure, taxed per gram, with their own minimum-tax rule. Because this structure is harmonised at EU level (Council Directive 2011/64/EU) but the actual rates are set nationally and revised annually, we describe the mechanism here without quoting a rate or a price — figures published in one year are not reliable for the next.

Key points

Two taxes apply: the specific tobacco excise duty (CIEC) and standard-rate VAT.
The excise duty combines a fixed specific element with a percentage-based ad valorem element.
A minimum total tax, recalculated yearly from the weighted average price, prevents very cheap products avoiding it.
Rates are revised annually, usually via the State Budget, so any figure quoted goes out of date quickly.

Two layers: excise duty plus VAT

Every tobacco product on sale in Portugal is subject to two separate taxes stacked on top of the manufacturer's and retailer's own costs and margins: the imposto sobre o tabaco (a specific excise duty under the CIEC) and IVA (value-added tax) at the standard national rate. The excise duty is unique to tobacco; VAT is the same general consumption tax applied to most goods and services.

The specific and ad valorem elements

For cigarettes, the CIEC (article 103) sets the excise duty as the sum of a specific element — a fixed euro amount per 1,000 cigarettes, independent of the price — and an ad valorem element — a percentage applied to the retail selling price. This dual structure follows the EU's harmonised approach so that cheaper and more expensive cigarettes are both taxed, but not in strictly the same proportion.

Fine-cut tobacco for rolling cigarettes, and other smoking tobacco, rapé and chewing tobacco, follow an equivalent two-element structure under article 104-A of the CIEC, but taxed per gram rather than per 1,000 units, with their own specific and ad valorem rates set separately from cigarettes.

The minimum tax rule

To stop very cheap cigarettes escaping meaningful taxation, the CIEC sets a minimum total tax per pack, recalculated each year from the weighted average price (preço médio ponderado) of cigarettes sold in the previous period. The Autoridade Tributária e Aduaneira publishes this weighted average price annually by official notice (ofício circulado). Rolling tobacco and other smoking tobacco have their own minimum, defined as a fraction of the cigarette minimum, adjusted by an equivalence factor.

The tax stamp (estampilha especial)

Every retail pack of manufactured tobacco released for consumption in Portugal must carry an estampilha especial (special tax stamp), whose unit price is set annually by ministerial order and which, together with a unique identifier, allows enforcement authorities to confirm the correct tax has been paid and to trace the product.

Why rates and prices are set nationally and change yearly

The EU directive fixes minimum standards and the general two-element structure so that member states cannot undercut each other by too much, but the actual specific amounts, ad valorem percentages and minimum tax are set by Portuguese law — typically revised in the annual State Budget — and republished each year based on updated weighted average prices. That is why any number quoted for one year is out of date the next, and why this guide describes the mechanism rather than current figures.

Common questions

What percentage of a cigarette pack's price is tax?: It is a very large share of the final price, but the exact proportion depends on the specific and ad valorem rates and the weighted average price in force that year, so we don't quote a figure here — check the Autoridade Tributária's own publications for the current year.
Does hand-rolling tobacco pay less tax than cigarettes?: It follows a comparable two-element structure but with separate rates set per gram rather than per cigarette, and its own minimum tax rule tied to a fraction of the cigarette minimum — so a direct comparison depends on the rates in force and isn't something we quote.
Where can I find the current tobacco tax rates?: The Autoridade Tributária e Aduaneira publishes the CIEC text and the annual weighted average price and tax stamp notices on its official customs information site.

Sources

This page is general information about Portuguese rules and Lisbon practice, not legal advice. Rules change; check the sources for the current text. Tobacco is for adults 18 and over.