Kiosk owners in Cyprus urged the finance ministry to seek an exemption from the EU’s planned tobacco tax hike, warning the measure would devastate small businesses and fuel smuggling across the island’s divide. Under the directive due in January 2028, cigarette prices would rise from €4.70 to €7 per pack, rolling tobacco from €7 to €13, and, for the first time, e-cigarettes, heated tobacco, and nicotine pouches would be taxed, effectively doubling their prices.
The kiosk owners’ association, Sykade, told parliament’s commerce committee that half of kiosk revenues come from tobacco sales. It estimates 126 million cigarettes and 162 tons of tobacco are already smuggled annually from the north, costing the state at least €50 million in lost tax revenue. With 600 kiosks closed in the past decade, Sykade warned further hikes would mean closures, unemployment, and declining state income.
Cyprus has one of Europe’s highest smoking rates at 34%, compared to the EU’s goal of reducing prevalence below 5% by 2040.








