Italy Accelerates Tobacco Tax Increases

Italy’s 2027-2029 Budget Bill would accelerate previously scheduled tobacco excise increases by six months, resulting in two cigarette price increases in 2027. The first is scheduled for January under Law 199/2025, with a second taking effect July 1. According to the bill’s technical report, a pack of cigarettes would increase 10 to 13 cents per pack, depending on the price category.

The changes also affect other tobacco and nicotine products. The minimum excise duty on hand-rolling tobacco would increase from €165.50 to €169.50 per kilogram, while the rate would rise from 60.9% to 61.1%. The excise rate on heated tobacco, calculated against the cigarette equivalent, would increase from 41% to 42%. For e-cigarette liquids, the rate would rise from 20% to 22% for nicotine-containing products and from 15% to 17% for nicotine-free products.