Price of cigarettes on the rise to support the EU, excise on 139%

The price from the cigarettes could face a increase: asks us for theEurope. To be more precise, in the new package of proposals for the budget of the European Union 2028-2035 a sting on tobacco is loomed and the plan will be officially presented the July 16th to the college of commissioners.

This is not a move dictated by a healthy push: the EU is thinking of retain a part of the revenue of excise deviating it from the budgets of the Member States. This is the possible scenario, in summary: packs of more expensive cigarettes, individual states less rich, more swollen EU budget.

Highest cigarette price in Europe

Together with the plan on cigarettes, another 16 dossiers linked to the next multi -year financial framework (MFF) will be presented, which will come into force in 2028.

According to sources of Brussels taken up by numerous newspapers, the European Commission would be evaluating a record increase in excise duties on cigarettes, chopped tobacco, cigars and e-cigarette To generate new resources to be allocated directly to the Community Budget.

A measure that, if confirmed, could lead to Average increases higher than +20% On the final price of the products, with a tangible impact on the pockets of millions of European smokers.

These are no small increases, if we consider that according to an ISS report (Higher Institute of Health) dated 2024 in Italy smoke An adult every four And among young people 30% make use of at least one product between cigarette, heated tobacco or e-cig and doubles polyconsumo.

The heart of the proposal is located between the lines of a reserved German document that explicitly cites the hypothesis of new tobacco taxes as a source of EU financing.

The excise on cigarettes traditional could increase of +139%those on tobacco chopped of +258% and those on cigars even of the +1,090%. Also alternative products, such as electronic cigarettes, heated tobacco and nicotine sachets, would be included in the reform.

Objective of the Commission: collect about 15 billion euros of tax revenue to be allocated directly to Brussels, subtracting them from the member’s coffers.

How much cigarette prices could increase

According to the first simulations, the increase in excise duties could translate into an upper increase in 1 euro For package of cigarettes in Italy. The overall inflation effect would be about half a percentage point.

A measure that, in addition to weighing on the pockets of smokers, risks having repercussions also on the submerged economy, favoring the smuggling of tobacco products.

Previous experiences, such as the French one, show that sudden increases in cigarette prices can trigger an expansion of the black market.

A European official cited by Euctiv said:

The risk is that it is more reinforced than what is collected.

Criticism

Contrary to the proposal are, at the forefront, Italy, Sweden, Greece, Romania and Bulgaria. These countries fear that the measure represents a dangerous precedent in terms of subtraction of tax sovereignty To the benefit of the EU.

Italy, in particular, leverages excise duties on tobacco to finance public spending and looks with skepticism to a centralization of revenue in Brussels. In order for the reform to enter into force theunanimity of the 27 Member States, a condition that at the moment appears difficult to achieve.