EU fails to reach agreement on tobacco tax reform

On November 9, 2026, European Union finance ministers meeting at the ECOFIN Council in Brussels failed to reach a unanimous agreement on a proposed revision of the tobacco excise tax directive. The Irish Presidency presented a compromise plan intended to modernize the tax framework, which has remained largely unchanged since 2011. The proposal included raising the minimum excise tax on conventional cigarettes from 90 to 215 euros per 1,000 units and, for the first time, establishing minimum tax rates for e-liquids, heated tobacco, and nicotine pouches.

While 26 of the 27 member states, including Cyprus, expressed support for the proposal, citing public health goals and internal market improvements, Malta blocked the deal. Maltese authorities maintained that tax policy should remain a national competence and argued that the proposed minimum rates were excessively high. Other countries, including Greece, had previously raised concerns regarding the potential for increased smuggling and the need for transition periods. Although the current negotiations have reached a stalemate, the Irish Presidency indicated that discussions will continue in December. There is a proposed timeline for gradual tax increases until 2032, with a potential transitional arrangement for Cyprus extending until 2036.