European Union: Proposal to revise tobacco taxes scaled back

The European Union is engaged in the process of revising the Tobacco Products Taxation Directive, which dates from 2011, but the European Commission's initial proposal was watered down in the face of opposition from several member states.[1]. Public health experts reacted immediately, reiterating the importance of a strong and harmonized tax increase in any smoking reduction strategy and in light of the European objective of achieving a tobacco-free generation by 2040.

These downward adjustments were proposed under the Cypriot presidency, which is close to the interests of the tobacco sector.

Currently, the directive on taxes only concerns traditional tobacco products, with very significant disparities between countries today.

The current minimum levy is €1.80 per pack of 20 cigarettes. Some countries, such as Ireland, France, and the Netherlands, apply significant taxes in addition to this minimum, while others, such as Bulgaria, Croatia, and Cyprus, do not. In July 2025, the Commission proposed raising this minimum to €4.30. The proposal also included the introduction of new taxes on vaping liquids (e-liquids) and heated tobacco products. This reform is currently being discussed by the EU Council, which must adopt it unanimously.

Under the Danish presidency, then Cypriot, several adjustments were nevertheless introduced.

The proposal put forward by Cyprus, which holds the presidency of the European Union, lowers this minimum rate to €4 and provides for a four-year period for implementing the new rates. The recommended tax levels for heated tobacco and e-liquids have also been revised downwards compared to the initial proposals. For example, the proposed minimum tax for heated tobacco would be €2 per pack, and the tax on high-nicotine e-liquids would be reduced to 20% of the retail price, compared to 40% in the previous versions.

Cyprus is one of the EU states with the lowest tobacco tax rates, and where the tobacco industry is particularly influential.

The proposals currently under discussion remain working documents, subject to change as negotiations progress and the six-monthly rotation of the EU Council presidency, which will pass first to Ireland and then to Greece. The final text will require unanimous adoption. If adopted in 2027, it would enter into force in January 2028.

Public health experts believe that strong and consistent taxation is necessary to create a tobacco-free generation.

Several experts and public health organizations have criticized the proposed lower rates, arguing that less ambitious taxation maintains high levels of consumption and addiction even though smoking prevalence remains particularly high overall within the European Union.

The World Health Organization (WHO) recently reiterated, based on the findings of scientific literature, that significant and regular tax increases represent the most effective way to reduce tobacco consumption. European countries with low tobacco taxes are therefore particularly incentivized to catch up..

Erin Roman, director of Smoke Free Partnership, a coalition of 57 European non-governmental organizations responsible for advocating for anti-smoking policies at the European level, warned that "« When a tax reform aimed at reducing consumption is applauded by an industry whose profits depend on affordability and product switching, it is clear that public health ambitions are diluted in the pursuit of unanimity and speed. ".

The National Committee Against Smoking (CNCT) points out that significant price differences between countries can encourage cross-border purchases fueled by the oversupply of these markets by tobacco manufacturers.

The stakes are high: in the EU, tobacco is responsible for more than 700,000 premature and avoidable deaths per year and accounts for 27% of all cancer cases.[2]. Raising taxes helps save lives, reduce non-communicable diseases of which tobacco is a major factor, mobilize resources, reduce health inequalities and finance health systems.

©Generation Without Tobacco

AD

[1]Kathryn Kranhold, EU countries scale back tobacco tax proposal, The Examination, published on February 10, 2026, accessed the same day

[2]European Commission announces new plan to revise Tobacco Directives, Lung Cancer Europe, published on August 8, 2025, accessed on February 10, 2026

National Committee Against Smoking |