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A company has requested a ruling on whether non-psychoactive hemp-based products (cigarettes, shred, and flowers) are subject to the Tobacco Products Tax. The Directorate-General for Tax (DGT) has responded that if these are non-prohibited substances for trade and do not serve an exclusively medicinal purpose, they fall within the scope of the tax.
This ruling clarifies the tax liability for hemp-based products, potentially increasing the tax burden on non-medicinal hemp manufacturers and retailers.
The tax team reviews your specific situation.
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