Austria’s tobacconists are pushing into the hemp business

A ruling by the Federal Finance Court on the tobacco tax liability of hemp flowers is now causing difficulties for domestic cannabis shops. Because they are not legally subject to the Narcotics Act, hemp products must therefore be subject to tobacco tax regulations.

Oils, soaps, seeds, but also smokable flowers – across Austria more and more hemp shops are offering their goods for sale. According to estimates, there are now more than 100 such shops between Lake Constance and Lake Neusiedl, plus countless vending machines. Tendency clearly rising, because the till is ringing.

The sale of “smokable material” outside of their sphere of influence had long been a thorn in the side of local tobacconists. As is well known, they are subject to the tobacco monopoly and have to pay taxes accordingly for the sale of their products.

“We demand immediate approval for the sale of smokable hemp products below 0.3 percent THC,” said Tobacconist chairman Josef Prirschl.

Court confirms the position of tobacconists

A ruling by the Federal Finance Court now confirms this position: According to this, the sale of hemp blossoms would also be subject to the tobacco tax law – and thus also to the monopoly administration. In other words, from a legal point of view, hemp products (we are talking about “grass” with a THC content of less than 0.3 percent, which is not subject to the Narcotics Act due to its effect) should be subject to the tobacco tax regulations.
Josef Prirschl, the federal chairman of the tobacconists, demands immediate approval for the sale of smokable hemp blossoms for the approximately 2,300 tobacco shops in Austria. According to reports, this has been lying around in a drawer of the Ministry of Finance for months.