A damper for hemp shops

Sale of cannabis flowers in tobacconists only

Cannabis flowers may only be sold in tobacconists and are now subject to the Tobacco Monopoly Act.

In future, smokable cannabis flowers with a low THC content may only be sold in tobacconists and are subject to tobacco tax with immediate effect. This is the result of a ruling by the Administrative Court. Experts expect additional revenue for the state in the double-digit million range.

Cannabis or hemp flowers with a very low THC content - less than 0.3 percent - are not considered addictive substances and may be traded, possessed and used for consumption. However, as smokable products, dried hemp flowers fall within the scope of the Tobacco Monopoly Act, as the Administrative Court ruled. In future, sales will therefore only be permitted in tobacco shops, and a tax rate of 34 percent will apply to the products.

Vorarlberg hemp store complained
The background to the ruling is a complaint by a hemp store in Vorarlberg to the Federal Fiscal Court. The company had imported large quantities of dried flowers from Switzerland, whereupon the Austrian customs office imposed a tobacco tax of almost 30,000 euros on it. The hemp store then argued that the flowers were not tobacco at all.

However, this was not the point, as the court held. The Tobacco Tax Act also covers smokable products that consist partly or entirely of substances other than tobacco. The Administrative Court has now confirmed the ruling of the Federal Fiscal Court. The ruling must be implemented immediately.

According to media reports, additional revenue of up to 15 million euros can be expected for the state. The ruling is likely to mean serious economic cuts for hemp stores, as CBD products make up a large part of their turnover. Hannes Hofer, head of the monopoly administration, estimates the market volume at around 50 million euros.