The European Commission has proposed a significant increase in taxes on tobacco products, which could raise cigarette prices by up to €7.
The plan includes a 258% tax increase on roll-your-own tobacco and 139% on standard cigarettes, along with higher rates for e-cigarettes and heated tobacco products. Greece and other southern European countries have expressed concerns, warning that such increases could encourage cigarette smuggling and harm local tobacco industries. They have suggested lower taxes, a longer transition period, and weight-based taxation instead of per-unit levies.
The proposed changes, part of a revision to the Tobacco Taxation Directive and the new TEDOR levy, could generate an estimated €15.1 billion in additional EU tax revenue. Under the most aggressive scenario, cigarette taxes would rise from €90 to €215 per 1,000 units, while rolling tobacco would jump from €60 to €215 per kilogram, and cigars would face a 1,092% increase. E-cigarettes with higher nicotine content would also see new levies.
The European Commission highlights that higher taxes and prices are the most effective way to reduce tobacco consumption, but member states are debating the economic and social consequences, particularly the risk of illegal trade and market disruption.
