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Switzerland: government returns over €30 million to producers of diet cannabis

Published

6 years ago

August 3, 2020 - Updated August 25, 2022

In June, Swiss customs officials refunded approximately 30 million euros (33 million CCHF) to producers and sellers of low-THC cannabis after the Federal Supreme Court scrapped the tobacco tax on "light" cannabis.

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Sellers of CBD The Swiss had thus filed a lawsuit to protest against the sales tax of 25% imposed on their products as tobacco substitutes. The Federal Court in Lausanne had ruled that there was, in fact, no legal basis for imposing a tobacco tax on CBD products.

«After a thorough analysis of the court rulings, the Federal Customs Administration has now decided to reimburse all manufacturers affected by the tobacco tax in question,», wrote the customs agency in June.

The taxes that had been wrongfully collected were therefore refunded amounting to 33 million Swiss francs. Hemp flower sellers who had paid the tax but had not been contacted by the agency were encouraged to fill out a form on its website to claim a refund of the tobacco tax paid on cannabis flowers.

The Federal Customs Administration noted that, while the financial burden of indirect taxes such as the tobacco tax is generally passed on to the consumer, it is unable to verify whether sellers of “light” cannabis were reimbursing their customers. The agency therefore encouraged customers to contact the seller or manufacturer.

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