Until recently, Croatia had relatively low sin taxes, but in April 2020 the government introduced sharp rises in the duty on tobacco, alcohol and coffee. A new system of soft drink taxation was established at the same time. As of January 1, 2023, Croatia has aligned its excise duties with the Euro currency, updating its taxation system. Sugar in soft drinks is taxed at rates of €1.33 per hectolitre (€0.01 per litre) at 2-5g/100ml, €3.98 per hectolitre (€0.04 per litre) at 5-8g/100ml and €7.96 per hectolitre (€0.08 per litre) if more than 8g/100ml. Soft drinks with taurine are taxed at €26.54 per hectolitre (€0.27 per litre).

In January 2020, the Ministry of Finance proposed a tax on all e-liquids at the rate of 1 kuna per ml. Croatia’s vaping community objected to the levy, which would have added the equivalent of €1.30 to a typical bottle of e-cigarette fluid, and the proposal was dropped. There is therefore no excise duty on vape juice, though heated tobacco products are taxed at €185.82 per kg and novel tobacco products at €114.15 per kg. There remains no excise duty on wine.

A comprehensive smoking ban was repealed in 2009 after damaging the hospitality industry and the current law is relatively liberal by European standards. Smoking is banned in restaurants but there are exemptions for small bars and larger premises can have ventilated smoking rooms. Vaping is banned indoors wherever smoking is banned.

Bars in urban areas must close at midnight, but municipal, city or county authorities can issue permission to certain areas where bars can open longer (up to 2 am), or even restrict closing hours earlier than midnight.

Croatia is one of nine countries in the Nanny State Index to have a full retail display ban for tobacco and it takes a tough stance on advertising. Wine cannot be advertised in any broadcast media and spirits, e-cigarettes and tobacco cannot be advertised at all. There are no such restrictions on beer.

With thanks to the Center for Public Policy and Economic Analysis