Transition Period Until End of 2028
The federal government plans to pass an amendment to the tobacco monopoly law on November 19. This amendment will regulate the sale of CBD flowers for the first time in legislation. It provides for a transition period until the end of 2028, during which CBD shops will be permitted to sell flowers again. Starting January 1, 2029, sales would be restricted exclusively to tobacco retailers (Trafiken).
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However, even during this transition period, obstacles remain: shops must apply for a hemp license to continue selling. While the Austrian Cannabis Association (ÖCB) recognizes this transition period as short-term relief, it points out that the fundamental problem remains unresolved: in three years, the CBD market faces shutdown once again.
According to a legal opinion by Prof. Heinz Mayer, a sales monopoly by tobacco retailers is legally untenable. The opinion concludes that CBD flowers clearly do not fall under the tobacco monopoly. Around 500 shops were severely impacted financially by the loss of their main product last year. Over 1,500 jobs are in acute danger. According to an ÖCB statement, the sales ban resulted in revenue declines of up to 70 percent. The association demands clear legal frameworks that enable coexistence between tobacco retailers and CBD shops.
Lost Tax Revenue
While many other EU countries have already created clear regulations for CBD flower sales, Austria remains an exception. Beyond sabotaging an entire industry sector ready to operate legally and pay taxes, the state also forgoes substantial tax revenue.
According to ÖCB estimates, the industry generates annual sales of approximately 500 million euros with legal hemp products. This could generate tax revenue between 40 and 50 million euros. Sales of CBD flowers through tobacco retailers alone are expected to generate only about 15 million euros in taxes. The ÖCB therefore demands a dedicated law for hemp product taxation that creates fair and economically sustainable conditions.
Unequal Treatment with E-Liquids
Shops selling e-liquids found themselves in a similar situation. A legislative change would have classified e-liquids under the tobacco monopoly law as well. However, they received a ten-year transition period. The ÖCB announced it will continue fighting the current legal situation all the way to the supreme court. This legal process will proceed through all instances and take up to two years.
However, this legal path doesn’t seem hopeless: In 2015, the Federal Ministry of Finance’s attempt to subject e-liquids to the tobacco monopoly failed before Austria’s Constitutional Court. The court made clear that e-liquids are not tobacco products and rejected the demand.
Other countries have also attempted to subject CBD flowers to tobacco monopolies—with similar results. In 2020, Switzerland’s Federal Court decided that CBD flowers are not a tobacco substitute. The court determined that only nicotine-containing products can be subject to the monopoly. CBD flowers, by contrast, are agricultural natural products.
Frequently Asked Questions About CBD Flowers in Austria
Are CBD Flowers Legal in Austria?
Yes, possession and consumption of CBD flowers with less than 0.3 percent THC are generally permitted in Austria. The sale is disputed: according to the current interpretation by the Administrative Court, the tobacco monopoly applies, meaning only tobacco retailers may sell flowers. The planned amendment is expected to allow shops to resume sales until the end of 2028, provided they obtain a hemp license.
Where Can I Buy CBD Flowers in Austria?
Currently only at tobacco retailers. Once the tobacco monopoly law amendment takes effect, licensed CBD shops are expected to be able to sell flowers again until the end of 2028. From January 1, 2029, according to the current draft, sales would once again be restricted exclusively to tobacco retailers.
What Does the Transition Period Mean Concretely for CBD Shops?
Shops wanting to sell CBD flowers until the end of 2028 must apply for a hemp license. This provides around 500 shops and approximately 1,500 jobs with short-term relief—however, according to the Austrian Cannabis Association (ÖCB), the fundamental problem remains, since only tobacco retailers would be permitted to sell again from 2029 onward.
Why Do CBD Flowers Fall Under the Tobacco Monopoly Law at All?
The Administrative Court classifies CBD flowers as a tobacco substitute. A legal opinion by Prof. Heinz Mayer reaches the opposite conclusion, and Switzerland’s Federal Court decided in 2020 that only nicotine-containing products fall under the tobacco monopoly. The ÖCB is currently litigating through all instances up to the supreme court—a process that could take up to two years.
Sources
Sollten CBD-Blüten dauerhaft in Hanfshops verkauft werden dürfen?
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