Austria’s CBD Flower Ban Faces Legal Challenges

Months after it was reportedly determined that dried hemp flowers in Austria with a THC content of up to 0.3% are subject to the country’s tobacco tax and monopoly, the nation’s government is facing ongoing legal challenges from cannabis industry members.

“The Austrian cannabis industry is breathing a sigh of relief after the publication of a constitutional opinion by leading jurist Dr. Heinz Mayer. According to Mayer, the sale of CBD weed with less than 0.3% THC is not subject to the tobacco monopoly, despite earlier reports from the Ministry of Finance. This would allow CBD shops to legally resume the sale of smokable cannabis products.” reported Cannabis Industrie in its original coverage (translated to English).

“Mayer argues that the ruling of the highest administrative court only confirms that CBD weed falls under tobacco excise duty, not under the monopoly itself. According to him, an extension of the tobacco monopoly to cannabis would be in conflict with the Austrian constitution and European law.” the outlet also reported.

According to a previous analysis by the Tax Foundation, Austria places a €3.32 excise duty per 20-pack of tobacco cigarettes. An additional ‘value added tax’ or VAT is also placed on tobacco products, raising the total tax per pack of tobacco cigarettes to €4.23. The Tax Foundation estimates that tax as a share of the final selling price per pack of tobacco cigarettes is 77%.

Regulators across Europe, and many other parts of the world, are struggling to rectify the inconsistencies in laws and regulations on consumable hemp products. For many years, hemp products were largely limited to textiles. However, many savvy entrepreneurs are bringing more consumable hemp products to emerging markets, often referred to as ‘cannabis light,’ and policymakers are scrambling to try to catch up.

According to the Austrian government, sales of cannabis light products must exclusively go through official tobacco shops as long as the sales ban remains in force. Vending machine sales are also prohibited according to the Austrian government.