After the increase of recent months, now the European Commission thinks of another increase in the price of cigarettes. Brussels has in anticipation of a revision of the Tobacco excise duty (TED), with possible increases of both taxation and public sales prices for cigarettes, electronic cigarettes, cigars, heated tobacco, tobacco to be enrolled and nicotine sachets. Increases could reach over 1,000 %.
The EU hypothesis
At the moment these are still preliminary assessments, even if the competent commissioner Wopke Hoekstra He has already expressed his desire to intervene, in particular on new products such as electronic cigarettes and heated tobacco, after those that took place in February of this year. The revision of the directive, moreover, is not even on the agenda of the College of European Commissioners for the next few weeks or months. However, at a time when Palazzo Berlaymont is looking for new entries to cope with the new long -term budget of the EU, and considering that the excise duties on tobacco are already one of their own resources, the pressure to act grows.
How much the increases would be
Entering the detail of the plan at the Brussels study, a significant increase is expected of both taxation and public sales prices for cigarettes, cigars, heated or to -roll tobacco, electronic cigarettes and nicotine sachets. The proposal provides for increases in the minimum excise duty on cigarettes, for:
- 215 euros for 1,000 pieces (+139%);
- 215 euros per kilo on tobacco (+258%).
Also leap for i cigarswhich would see an increase of 1,090%.
The new study rules will also fall on new generation products as heated tobacco, cigarettes electronicnicotine sachets, including those made in Italy. For electronic cigarettes, a taxation is assumed based on the concentration of nicotine, from 0.12 to 0.36 €/ml, while for heated tobacco the proposal includes € 108/1,000 or 155 €/kg, or about half of the tax burden scheduled for traditional cigarettes.
But in terms of prices, how could the scenario change? For Italian consumers, the hypotheses to the study would translate into an increase of 1 euro per package, equal to over 20% both in the case of cigarettes and for heated tobacco products.
The position of Italy
An unprecedented rise for Italy, which on the subject has diametrically opposite positions. In May, in fact, the owner of the treasure Giancarlo Giorgetti had clarified to the Dutch commissioner Wopke Hoekstra that he wanted to safeguard investments in Italy in the sector, considering that the tax factor constituted a central element.
The goal of Rome is therefore to not put the hand to the current picture, preserving the holding of the supply chains and jobs. Without forgetting the reduction of illegal trafficking of “blondes”: the Italian average stands at1.8 percentwhile the European one stands around 10 percent. Italy then exports Made in Italy heated tobacco products for an overall value of almost two billion euros per year. The segment that is likely to be compromised by the surge in taxation also in the destination countries.
