EU finance ministers discuss major tobacco tax overhaul

On November 9, 2026, European Union finance ministers met in Brussels during an ECOFIN council session to negotiate a controversial overhaul of the EU tobacco taxation directive. The Irish Presidency, aiming to reach a political agreement before handing the leadership to Lithuania, is pushing for significant increases in excise duties. The European Commission’s proposal, pending since July 2025, seeks to raise the minimum excise tax on cigarettes from 90 to 215 euros per 1,000 units, representing a 139% increase. Furthermore, the plan introduces standardized taxation for emerging products, including e-liquids, heated tobacco, and nicotine pouches.

The negotiations face significant hurdles, with several member states, including Greece, requesting longer adjustment periods and smaller tax hikes. Concerns have been raised by analysts and officials regarding a potential surge in the black market and the negative impact on consumer affordability. While some estimates suggest retail prices could reach 13 euros per pack, others caution that the actual impact could be much higher depending on local implementation. As of now, reaching a unanimous agreement remains difficult, with some sources indicating that a six-month delay in the final decision is possible given the deep divisions among the 27 member states.