EU discusses potential excise tax increases on tobacco products

The European Council of Economic and Financial Affairs (ECOFIN) is set to discuss a revision of the tax framework for tobacco products on November 9. The proposed changes aim to modernize legislation to support public health goals and adjust fiscal policy to the current market, including the integration of new nicotine products like e-cigarettes and heated tobacco into a unified regulatory regime.

The initiative involves increasing minimum excise duty rates to reduce disparities between EU member states, with rates expected to be linked to general price levels and the economic situation of each country. Countries such as Cyprus, Greece, Hungary, and Bulgaria are expected to be significantly affected by these adjustments. While some reports speculate about price increases—such as reaching 6.50 euros per pack in Greece—officials, including the Cypriot customs representative Andreas Constantinou, emphasize that these are preliminary discussions rather than final decisions.

Negotiations remain ongoing, and the proposal requires unanimous approval from all member states to move forward. Consumer advocates expect potential opposition from the tobacco industry as the review process continues.