15 EU Countries Push Higher Cigarette & Vape Taxes
15 EU countries, including Germany & France, urge European Commission to update tobacco tax laws, impose vape levy & raise cigarette excise.
A majority of European Union member states, including heavyweights Germany, France, and Spain, are urging the European Commission to urgently proceed with a long-delayed plan to update the bloc’s tobacco taxation rules. In a letter to Commission President Ursula von der Leyen, finance and economy ministers from 15 countries have called for the swift adoption of a revised Tobacco Taxation Directive (TTD).
The core demands include substantially raising minimum excise rates on traditional cigarettes and cigars to harmonize taxation across the EU and combat tobacco fraud. Crucially, the proposal also seeks to introduce, for the first time, EU-wide minimum taxation rates for newer products like vapes (e-cigarettes), nicotine pouches, and heated tobacco products. The current directive, last updated in 2011, is deemed “insufficient” to address the challenges posed by the evolving European tobacco market and the emergence of these novel products.
The Commission had initially scheduled the bill for 2022 but delayed it due to concerns about the potential impact of rising excise taxes during a period of high inflation. With inflation now having slowed, EU officials indicate a proposal is expected “soon.” Tax Commissioner Wopke Hoekstra is reportedly keen to push ahead, citing significant health concerns and lost revenue from illicit trade, estimated by the European Anti-Fraud Office (OLAF) to exceed €10 billion annually.
However, the bill requires unanimous approval from all member states. A minority, including Italy, Greece, and Romania – notable tobacco producers – are lobbying against a comprehensive revision, arguing that smoking rates are already declining and that current legislation is adequate. A leaked 2022 version of the proposal suggested dramatic increases in minimum excise rates for cigarettes (100%), rolling tobacco (200%), and cigars/cigarillos (900%), though final rates could differ. The EU’s bill sets minimums, meaning countries with already higher tobacco taxes would not be impacted by these specific thresholds. Cigar makers have criticized the proposed hikes as “irresponsible.”
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