The European Commission has proposed a revision of the Tobacco Taxation Directive to increase minimum excise duties on cigarettes by 139%. This policy aims to reduce tobacco consumption across the bloc and harmonize taxation rules in the single market.
Under current rules, the EU minimum excise tax on cigarettes stands at €90 per 1,000 units. While member states retain the authority to charge higher rates individually, the proposed directive will raise this baseline target. The Commission estimates that previous tax increases drove 40% of the decline in EU tobacco consumption over the past decade.
Additionally, the directive introduces minimum tax rates for alternative nicotine products, including e-cigarettes, heated tobacco, and nicotine pouches. The proposal is currently under negotiation and requires unanimous approval from all 27 EU member states to become law.
| Product Category | Current EU Minimum Tax Status | Proposed EU Minimum Tax Status |
|---|---|---|
| Cigarettes | €90 per 1,000 units | 139% increase on minimum baseline |
| Vapes & Heated Tobacco | No EU-wide minimum tax | New EU-wide minimum tax introduced |
| Nicotine Pouches | No EU-wide minimum tax | New EU-wide minimum tax introduced |
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