After months of legal uncertainty, the Austrian government has approved an amendment that will place smokable hemp flowers under the country's tobacco monopoly from January 2029. Until then, CBD and hemp shops will be allowed 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.
This decision follows a ruling issued at the end of 2024 by the administrative court and the confirmation this year by the Supreme Administrative Court that flowers fall under the law on tobacco taxation , which results in a tax of 34%.
While non-smokable products such as CBD oils, edibles, or topicals are not affected by the European regulations, this decision has a significant impact on the Austrian flower market. According to retailers, flowers represent the main source of revenue for hundreds of specialty shops.
Industry representatives did not mince words at a press conference held after the government's announcement. "This is not a rescue, but in reality a fatal blow," said Lukas Bock, a retailer in Vienna, who argued that he and "hundreds of others" now face the loss of the flagship product on which their business depended.
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