The European Commission is considering a 139% tax increase on cigarettes alongside significant rises for alternative nicotine products, according to Euractiv.
The draft revision of the Tobacco Excise Tax Directive (TED) proposes raising cigarette taxes from €90 to €215 per 1,000 units, while rolling tobacco would surge by 258% to €215/kg, effectively equalising their taxation despite higher consumer costs for self-assembled tobacco.
The plan introduces EU-wide excise duties for previously unregulated products, but with varied rates. E-cigarettes face nicotine-content-based taxes of €0.36/ml for liquids with more than 15mg of nicotine/ml and €0.12/ml for less than 15mg/ml.
Heated tobacco receives comparatively moderate treatment at €108/1,000 units, half the rate of cigarettes. Nicotine pouches would be taxed at €143/kg, and waterpipe tobacco (shisha) at €107/kg.
Cigars and cigarillos endure the steepest hike of a 1,090% increase to €143/1,000 units.
The reforms respond to pressure from 15 member states, led by France and the Netherlands, demanding harmonisation to address market fragmentation and rising youth vaping. Countries currently impose divergent taxes, creating single-market distortions and cross-border smuggling incentives.
The proposed rates incorporate a 20% inflation adjustment atop 2022 figures, yielding stark national disparities.
Southern member states vehemently oppose equating novel and traditional products. Italy, Greece, and Romania—where tobacco farming represents significant economic activity—argue heated tobacco warrants distinct categorization. Meanwhile, health advocates criticise the lighter heated tobacco rate.
The Commission faces intricate political challenges: unanimous approval is required, yet countries like Belgium push for stricter measures (having banned disposable vapes entirely), whereas others resist undermining national tax autonomy.
