The rise in popularity of hemp flower has been significant in recent years, particularly in Europe, where sales of ‘cannabis light’ products have become increasingly common across the continent, including in Austria.

Austria’s Administrative Court issued a ruling near the end of 2024, which deemed that hemp flowers are subject to the nation’s Tobacco Tax Law, and thus, have to be taxed at a 34% rate. The decision was then upheld earlier this year by the Supreme Administrative Court.

Industry members were hopeful that, despite the decision to subject hemp flower sales to the high taxation rate, sales would not be subject to a tobacco monopoly. Unfortunately, the Austrian government recently announced that hemp flower sales will also eventually be subject to the monopoly provision.

“After months of legal uncertainty, the Austrian government approved a change that will place hemp flowers for smoking under the country’s tobacco monopoly starting in January 2029.” Newsweed stated in its original reporting (translated from Portuguese to English). “Until then, CBD and hemp shops will be able to continue selling flowers under strict conditions, a temporary compromise that many in the industry describe less as a relief than as a countdown to collapse.”

“Although non-smokable products, such as CBD oils, edibles, or topical products, are not affected by European regulations, this decision severely impacts the Austrian flower market. According to retailers, flowers represent the main source of income for hundreds of specialized shops.” 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%.

Once the new requirements go into effect in January 2029, sales of cannabis light products must exclusively go through official tobacco shops. Cannabis advocates and industry members will have to work extra hard in the coming years to get Austria’s policies and regulations on a better path.

Currently, cannabis is legal for adult use in Uruguay, Canada, Malta, Luxembourg, Germany, South Africa, and starting next year, in the Czech Republic. More countries will likely be added to the list between now and when Austria’s new hemp flower sales requirements go into effect, and hopefully, that will encourage policymakers in Austria to reverse course and get on the right side of history.