EU pushes biggest tobacco tax overhaul in decade

The European Union is moving toward its biggest overhaul of tobacco taxation in a decade, proposing sharply higher cigarette duties and new EU-wide taxes on vapes, heated tobacco products and nicotine pouches as Brussels seeks to curb smoking and the rapid growth of alternative nicotine products.

The European Commission proposed revising the Tobacco Taxation Directive (TTD) after concluding that existing tobacco rules, while successful in reducing traditional cigarette use, are increasingly outdated. The proposal remains under negotiation after the European Parliament failed to adopt a formal position in June 2026. The final decision rests with the Council of the European Union, where all 27 member states must agree, Euronews writes. 

Around 24% of Europeans smoke, while roughly 300 billion cigarettes are sold annually across the bloc. Smoking rates vary widely, from about 8% in Sweden to 37% in Bulgaria. Among men, regular smoking reaches 49% in Bulgaria and 48% in Latvia, while Greece has the highest rate among women at 32%.

The Commission's proposal would increase minimum excise duties on standard cigarettes by 139%. It would also introduce mandatory EU-wide minimum excise taxes on vapes, heated tobacco products and nicotine pouches for the first time.

The changes come as younger consumers increasingly turn to alternative nicotine products. The World Health Organization says 11.6% of teenagers aged 13 to 15 in the European region use tobacco or newer nicotine products.

Health authorities consider vapes and heated tobacco products less harmful than conventional cigarettes, but stress that they are not risk-free. Public health experts have identified potentially harmful substances in these products, while nicotine remains highly addictive. They also warn that adolescent exposure to nicotine can affect brain development and increase the risk of long-term dependence.

Marketing, flavours and social-media promotion are among the factors experts say are driving youth consumption.

The EU has set a goal of creating a “Tobacco-Free Generation” by 2040, meaning fewer than 5% of the population would smoke. Existing measures have helped reduce adult smoking rates from 28% to 24%, according to the Commission's Tobacco Control Framework Evaluation.

But tobacco remains a major public health burden. About 700,000 people die from tobacco-related causes in the EU each year, while tobacco-related cardiovascular and chronic obstructive pulmonary diseases are estimated to cost public healthcare systems €25 billion annually.

The proposed directive would also bring raw tobacco leaf into the EU's electronic tracking system, aimed at tackling black-market activity and cross-border tax evasion.

The European Parliament rejected its advisory report on the proposal in June after political groups voted against an amended compromise text. Because taxation is subject to the EU's special legislative procedure, Parliament's position is not binding.

Meanwhile, individual countries are introducing their own restrictions. Belgium has banned the sale of disposable electronic cigarettes, while France has adopted a single-use vape ban and expanded smoking restrictions. The Netherlands has prohibited vape flavours other than basic tobacco profiles.

By Sabina Mammadli