What is Kratom?
Kratom is a herbal substance that has a stimulant and opioid-like effect. Kratom stimulant effects include alertness, rapid heart rate, and increased energy. Kratom can also cause effects such as relaxation, confusion, and pain relief similar to opioids and sedatives effect. How kratom affects each person depends on how much is taken, its strength or concentration, how it is taken (capsules, powder, tea), and the person's medical conditions and drug-taking history.
Kratom products are made from leaves from Mitragyna speciosa, a tree native to Southeast Asia. Kratom is usually taken as raw plant material either in a capsule, in powder form mixed into drinks or food, tea made with leaves, or as liquid kratom extract.Kratom’s common or street names are Thang, Krypton, Kakuam, Thom, Ketum, Biak-Biak (common name in Thailand), Mitragyna speciosa, mitragynine extract, biak-biak, cratom, gratom, ithang, kakuam, katawn, kedemba, ketum, krathom, krton, mambog, madat, Maeng da leaf, nauclea, Nauclea speciosa.
From regulation to taxation
The Czech approach to kratom has changed substantially over the past few years. Until November 2025, kratom was not prohibited in the Czech Republic but operated largely in a regulatory grey area. Products containing kratom were commonly marketed, for example, as “collectors’ items” rather than products intended for consumption. This changed on 12 November 2025, when kratom and kratom extract were officially included on the list of psychomodulatory substances and became subject to a dedicated regulatory framework.
As a result, their manufacture, import, distribution and sale are subject to specific regulatory requirements, including authorisation and product-testing obligations. Sales to persons under 18 are prohibited and retail sales are restricted to specialised establishments.
The Czech Government is now proposing a further significant step. In September 2026, it approved the so-called “Lex Kratom”, a package of measures intended to tighten the existing regulatory framework and, importantly from an indirect tax perspective, introduce a new excise duty on kratom.
A new national excise duty
Unlike harmonised EU excise duties on products such as alcohol, tobacco or energy products, the proposed levy on kratom would constitute a national non-harmonised excise duty.
According to the Government proposal, the tax rate would depend on the type and concentration of the product. The proposed rates are:
CZK 2 per gram or millilitre for standard kratom products;
CZK 10 per gram or millilitre for concentrated products, particularly kratom extracts; and
CZK 20 per gram or millilitre for illegally marketed kratom products.
The proposal would also introduce mandatory excise stamps similar to those already used for certain excisable products. The tax measures are therefore expected to create additional registration, compliance and product-marking obligations for businesses involved in the kratom supply chain.
VAT and stricter distribution rules
The tax changes form part of a broader regulatory package. Lex Kratom also proposes increasing the minimum age for purchasing kratom from 18 to 21, prohibiting online and other distance sales, and restricting sales to specialised brick-and-mortar stores.
In addition, the proposal would change the Czech VAT treatment of kratom. Kratom currently benefits from the 12% reduced VAT rate, whereas the proposed legislation would move it to the standard 21% VAT rate.
The combination of a new excise duty and the higher VAT rate could therefore have a significant impact on the final price of kratom products and on the compliance obligations of manufacturers, importers and distributors.
What happens next?
The proposal approved by the Czech Government still has to pass through the legislative process and may therefore be amended before its final adoption.
Nevertheless, Lex Kratom illustrates an interesting development in indirect taxation. Products falling outside the traditional harmonised excise categories may become subject to national consumption taxes combined with product-specific regulatory measures.
Businesses active in this market should therefore closely monitor the legislative process and prepare for potentially substantial changes to their Czech supply chains and compliance obligations.
