On 16 July 2025, the European Commission proposed a revision of the EU Tobacco Taxation Directive. The goal: to modernise the rules, support public health, reduce disparities, and tackle illicit trade. This update supports the broader objectives of Europe’s Beating Cancer Plan.
What has been proposed?
- Higher minimum taxes on tobacco
- EU countries will need to apply minimum tax rates based on their national price levels. This aims to make tobacco products less affordable and discourage smoking.
- New nicotine products included
- E-cigarettes, heated tobacco, and nicotine pouches will now be taxed under the Directive with new minimum rates.
- Stronger control of raw tobacco
- Raw tobacco will be added to the EU’s electronic monitoring system EMCS, making it easier for Member States to fight illicit trade.
Why now?
- The current directive dates back to 2010 and no longer reflects today’s market or public health needs.
- Smoking rates in the EU remain at 24%, far from the 2040 target of under 5%.
- New nicotine alternatives are growing in popularity and need to be regulated.
- Illicit trade in tobacco remains a major concern across the EU.
Next steps:
The proposal will be reviewed by the EU Council and the European Parliament. Once approved, the new rules can take effect.
Questions?
Our consultants are ready to assist you and happy to answer all your excise tax questions.
