The European Commission is assessing substantial proposed tax hikes in tobacco and nicotine products. Photo credit: Pxhere.
The European Commission is weighing sharp increases in tobacco taxes—proposing a 258% jump on rolling tobacco and a 139% rise on cigarettes—according to an internal impact assessment reviewed by Politico.
Alongside these hikes, the Commission also intends to introduce excise taxes on vapes and heated tobacco products for the first time.
This push comes amid mounting pressure from EU member states to revise the bloc’s Tobacco Excise Tax Directive. Tax commissioner Wopke Hoekstra recently indicated plans to finalize the revision before the summer.
Sixteen member states, led by the Netherlands, urged the Commission last year to address tax inconsistencies across the EU. These countries argue that varied national rates disrupt the single market and undercut public health goals. Several governments have also pushed for new rules to cover emerging nicotine products, particularly those popular among youth.
However, some countries—including Italy, Greece, and Romania—have called for a more cautious approach.
The Commission outlined three policy paths in its assessment but favored the most aggressive tax proposal, which could generate an estimated €15.1 billion (US$16.3 billion) in additional revenue.
Under the preferred scenario, cigarette taxes would rise from €90 (US$97) to €215 (US$232) per 1,000 sticks. Rolling tobacco would see a similar leap, from €60 (US$65) to €215 (US$232) per kilogram. The plan also includes a staggering 1,092% hike on cigars, increasing the tax from €12 (US$13) to €143 (US$155) per kilogram.
For e-cigarettes, the Commission recommends taxing liquids based on nicotine concentration: €0.36 (US\$0.39) per milliliter for products with over 15 mg/ml and €0.12 (US$0.13) for those below that threshold.
Nicotine pouches, which are facing tighter flavor restrictions across the EU, are proposed to be taxed at €143 per kilogram (US$154 per kilogram).
The document claims that tax policies account for roughly 40% of the reduction in smoking rates across the EU over the past decade. It also warns that current minimum tax levels no longer deliver the same impact in curbing tobacco consumption. The Commission maintains that raising prices through taxation remains the most effective strategy to cut tobacco use across the bloc.