The European Union is considering one of its most stringent tobacco control measures to date, with a new draft proposal aiming for tax increases of up to 139% on cigarettes and other tobacco products. This plan, being prepared in Brussels, extends beyond traditional cigarettes to include roll-your-own tobacco, e-cigarette liquids (both nicotine-containing and nicotine-free), and other alternative tobacco products.
Under the proposal, the minimum excise duty for 1,000 cigarettes could rise by nearly 139% (potentially up to €215). The tax rate for roll-your-own tobacco could see an even steeper increase of up to 258%, while alternative tobacco products might face hikes exceeding 1000%. In countries like Italy, this could mean at least a €1 increase per cigarette pack, with experts warning of a potential inflationary impact of over half a percentage point.
The European Commission cites three main goals: protecting public health by deterring tobacco use, generating revenue for the EU budget (particularly for the 2028-2034 period), and financing the EU's digital and green transitions. However, experts caution that such drastic tax increases could fuel illicit cigarette trade, already a significant issue in countries like France where it accounts for 38% of consumption. The proposal is currently in the "impact assessment" stage and, if adopted, is targeted for implementation from 2026.