The Austrian Supreme Administrative Court has ruled that smokable hemp flowers are subject to the country’s to tobacco tax, and may only be sold in licensed tobacco shops.
While the tobacco tax, which amounts to 34% of the retail price, is expected to generate millions of Euros in additional tax revenues, restricting sales to tobacconists is likely to bring a crippling blow to the country’s hemp shops, where raw flowers and smokable pre-rolls are leading items.
Observers have said consumers will be impacted by higher prices for smokable hemp products, which could push some toward the black market.
If it’s smokable, tax it
The legal basis for the high court ruling lies in Austria’s Tobacco Tax Act, which stipulates that smokable products made wholly or partially from substances other than tobacco are subject to tobacco tax if they are suitable for smoking.
The ruling does not impact the sales of CBD oils and other non-smokable CBD products. CBD oils, edibles, topicals, and similar products remain legal in Austria as long as they contain less than 0.3% THC, in line with EU regulations. These products can still be sold in a wide range of outlets, including health food stores, pharmacies, and online shops.
Austria’s CBD rules
While CBD products are legal in Austria, any health claims made about them are tightly regulated and may require specific approvals. Additionally, hemp cultivation for CBD oil production remains legal under EU regulations.
In a legally binding decision applicable across the EU, the European Commission declared in 2020 that CBD is not a narcotic and may be legally traded in and among member states; raw hemp flowers may also be traded if they are under the EU THC limit of 0.3% or less. The ruling was based on a celebrated European Union Court of Justice finding made earlier in the same year.