Italian Lawmakers Examine Tobacco Legislation

Italian lawmakers have started investigating the country’s taxation and concessionary system for the retail sale of tobacco and next-generation products, reports Sigmagazine.

On Sept. 18, the Chamber of Deputies’ finance committee heard from three tobacconist organizations. The exchange will likely be followed by hearings of vapor industry representatives.

This marks the first formal occasion where politicians acknowledge the nicotine sector, thus recognizing it as a legitimate interlocutor.

Italy’s tobacco market has been in flux as traditional tobacco products, particularly cigarettes, have lost ground to next-generation products, which jumped from 4 percent to 18 percent of the market between 2019 and 2023.

In response to the shifting sales trends and tax receipts, Italian lawmakers have adjusted the fiscal framework for smoking products. For example, during the 17th legislature, they extended excise duties to noncombustible tobacco products. E-liquids made from substances other than tobacco used in e-cigarettes were also subjected to taxes.

In addition to analyzing the tax framework, the finance committee wants to assess whether the system is consistent with EU rules and gather insights into the illicit trade.

According to the Italian Tobacconist Federation, the illegal market for smoking products and inhalable products is worth €1 billion ($1.11 billion), causing the state and tobacconists to miss out on income of €620 million and €120 million, respectively.

The commission’s work must be completed by Dec. 31, 2024.