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IQOS - Excise tax • . Czech Republic HEETS FROM MARLBORO are not subject to excise tax under Act no. 353/2003 Coll. on excise taxes, as amended (the product cannot be smoked as is) Ministry of Finance is working on the draft amendment to the Excise Tax Act, which would tax heated tobacco products. We expect the legislative process to start in autumn 2017. Slovakia As of 1 May 2017 HEETS are subject to excise tax as a smokeless tobacco product under Act no. 106/2004 Coll. on Tobacco Excise Tax, as amended • Excise tax per weight 76.70 EUR/kg tobacco in a smokeless tobacco product RRP 9 REDUCED RISK PRODUCTS

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