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Tag: EU

  • Report: Black Marketeers Continue to Evolve with Technology

    Report: Black Marketeers Continue to Evolve with Technology

    Tobacco smugglers and black marketeers are increasingly using technologies such as social media and drones to deliver cigarettes to smokers in Europe and avoid law enforcers, a report found.

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, the illegal networks’ flexible strategies have helped illicit consumption increase 10.8% in the EU from 2023, with criminal groups shifting toward smuggling smaller packages, more often, via budget airlines, railways, and drones. They are also increasingly bypassing physical stores to sell directly to consumers on social media.

    The report showed that criminal groups are holding less inventory, which is reflected in a decrease in the size of illicit cigarette seizures as the gangs mitigate their risks and reduce the impact of raids by law enforcers. The more recent change in tactics follows another shift from 2020, when the groups moved production closer to end-markets, partly in response to the pandemic disruption, and also reducing the chance of detection.

  • Bulgarian Vape Ban Pending EU Approval

    Bulgarian Vape Ban Pending EU Approval

    The ban on vaping in Bulgaria is set to be enforced, but only after receiving the green light from Brussels. This emerged following the meeting of the parliamentary Committee on Economic Policy and Innovation, which discussed the second reading of amendments to the Law on Tobacco, Tobacco and Related Products.

    The bill, proposed by Kostadin Angelov from GERB (Citizens for European Development of Bulgaria) in February, calls for a full ban on the sale, use, and advertisement of vaping products, as well as energy drinks targeted at minors, according to the Bulgarian News Agency.

    Petar Kanev, chair of the Committee and member of the Bulgarian Socialist Party Parliamentary Group – United Left, described the legislation as one of the most anticipated in recent times. In February, the parliament approved the bill at the first reading with overwhelming support, gathering 197 votes in favor.

    During the committee session, members discussed the timeline for the bill’s enforcement, taking into account the requirement to notify the European Commission about specific provisions. They agreed that while the draft would proceed to the second reading in parliament, it would not come into effect until formal notification from Brussels is obtained.

  • Fifteen EU Members Pushing for Excise Hikes on Tobacco

    Fifteen EU Members Pushing for Excise Hikes on Tobacco

    A majority of EU member states have called for the European Commission to press ahead with a long-delayed plan to tax vapes and raise minimum excise rates on cigarettes and cigars, according to Financial Times. The letter—signed by Austria, Belgium, Bulgaria, Czechia, Denmark, Estonia, Finland, France, Germany, Ireland, Latvia, The Netherlands, Slovakia, Slovenia, and Spain—called on the Commission to take “without delay the necessary steps” to update the directive.

    The Tobacco Excise Tax Directive (TED) was controversially left out of the Commission’s 2025 work program, though some states have been pushing for higher taxes on both tobacco and alternative products such as e-cigarettes, heated tobacco, and nicotine pouches. Unlike traditional tobacco, alternative products still lack an EU-wide excise framework. Euractiv reported last week that the EU commissioner in charge of taxation, Wopke Hoekstra, was testing the waters for such an initiative.

    “They want her to unblock the proposal, which is yet to be adopted by the commission and would, for the first time, set minimum taxation rates for vapes, nicotine pouches and heated tobacco,” Paola Tamma and Andy Bounds wrote for Financial Times. “It would also substantially raise minimum excise rates for cigarettes and cigars to harmonize taxation across the bloc and reduce tobacco fraud.”

    “The current scope and provisions of the directive are insufficient to enable member states to deal with the significant challenges posed by ongoing developments and trends in the European tobacco market, including the emergence of novel products,” the 15 EU finance and economy ministers wrote in the letter.

    Initially scheduled for 2022, the commission delayed the bill because of concerns about the impact that rising excise taxes could have at a time when inflation hit double digits across the bloc. Olaf, the European Anti-Fraud Office, estimates lost revenue from illicit tobacco to be more than €10 billion a year.

    The bill, however, requires unanimous approval. Twelve countries did not sign the letter, with Romania, Italy, and Greece among the most vocal opponents of revising the directive. A letter from the dissenting countries last month said they did not deem it necessary ‘‘to proceed…to a comprehensive revision of the overall EU legislation”. They also added that smoking rates are already falling. In a leaked version of the 2022 proposal, excise rates would have increased by 100% for cigarettes, 200% for rolling tobacco, and 900% for cigars and cigarillos.

    Paul Varakas, director of the European Cigar Manufacturers Association, said it was ‘‘out of touch and completely irresponsible in the context of an uncertain trade war.”

    An EU diplomat representing a southern state told Euractiv that high tobacco taxation in France and the Netherlands had resulted in black markets and increased cross-border shopping, with the diplomat accusing Paris and The Hague of pushing others to “repeat the same mistake”.

  • Leaked EU Document Calls for “Substantial” Taxes on Nicotine Pouches

    Leaked EU Document Calls for “Substantial” Taxes on Nicotine Pouches

    According to The Vaping Post, a confidential European Commission (EC) document, leaked by Snusjournalen, has revealed a contentious plan to impose a substantial EU-wide tax increase on nicotine pouches (NPs). Spearheaded by the Directorate-General for Taxation and Customs Union (DG TAXUD), the proposed measure could trigger widespread economic, political, and criminal repercussions across the Union.

    Europe already finds itself in a tenuous economic situation, dealing with economic instability that includes inflation and escalating trade tensions with the United States. Worse on the nicotine front, a recent Europol report shared by Euroreporter, “The Changing DNA of Serious and Organised Crime,” highlights the direct link between excessive taxation and the rise of black markets—specifically citing tobacco and nicotine products. The report warns that strict tax policies create opportunities for criminal networks to expand operations, smuggle products across borders, and launder illicit funds. Experts fear that a steep price increase on NPs could drive a surge in illicit sales, with products being illegally imported from non-EU nations like China.

    Although the European Commission has yet to confirm the directive publicly, the leak has already sparked significant concerns among key stakeholders, including law enforcement, investors, and consumer advocacy groups. Given Europol’s warnings on illicit trade and the broader political and economic climate, this proposed tax increase is shaping up to be one of the most contentious regulatory battles in the coming months.

    “In light of these developments, the proposed tax hike on NPs adds yet another layer of uncertainty to an already volatile regulatory and economic landscape,” wrote The Vaping Post. “More importantly, with the vaping industry currently facing such a critical juncture, which could result in less availability of vaping products to smokers using them to quit, a harsh tax set on snus would be currently all the more detrimental to public health.”

  • France Wants EU to Raise Tobacco Taxes in Luxembourg

    France Wants EU to Raise Tobacco Taxes in Luxembourg

    Believing higher cigarette prices directly correlate to lesser use, France has continued to tax nicotine products in hopes of reducing smoking in the country. Though the number of cigarettes purchased in the country declined 26% between 2017 and 2022, the same can’t be said of the smoking rate which remains at 29.2%, a slight improvement from 33% in 2017. The problem is that consumers, predictably, will seek out better deals, and in this case need only to cross the border into Luxembourg.

    A pack of 25 cigarettes in Luxembourg costs €8, whereas the same pack across the way in France costs  €15. A recent study by the French Observatory of Drugs and Addictive Tendencies shows that the sales drop for cigarettes at the border is even more dramatic, at 46.2%. As such, French officials are petitioning the EU to level the playing field.

    “Public health policies aimed at reducing tobacco consumption see their effect limited, in particular, because of the development of the parallel market,” French MP Frédéric Valletoux said in a recent motion for a resolution calling for changes to anti-smoking regulations at the European level.

    “Aligning tobacco taxation across the 27 Member States would reduce price disparities and limit cross-border purchases,” according to a report on tobacco published in March 2024 by a European Parliament working group. The report acknowledged the challenges of achieving this goal, as taxation remains outside the EU’s jurisdiction, and price differences between member states continue to widen.

    Another solution being pushed by the French would be to impose tobacco delivery quotas within the EU, as outlined in the World Health Organization protocol to eliminate illicit trade in tobacco products. The quotas would limit tobacco deliveries to each country based on domestic consumption. For example, Luxembourg receives three billion cigarettes annually, despite its domestic consumption being only 600 million.

    Luxembourg is raising the prices on the cheapest cigarettes in its market by €0.30 but otherwise isn’t likely to take more aggressive actions as its Customs and Excise Administration says cigarette sales reached 4.9 billion units in 2024, generating €1.4 billion in revenue for the country. This figure is expected to rise to €1.6 billion in 2025 and €1.9 billion by 2028.

  • Dutch Urge EU to Get Tough on Vapes

    Dutch Urge EU to Get Tough on Vapes

    Dutch junior health minister Vincent Karremans told the European Commission that the decision to delay legislation on new nicotine products is “harmful” in a letter sent to EU health chief Olivér Várhelyi after the commission decided to exclude tobacco-related legislation from its 2025 work program. Karremans urged him to take “decisive” action to protect young people’s health.

    The Dutch also want the EU to establish a legal framework for cross-border distance sales of new tobacco products, arguing that these allow consumers to bypass national restrictions. According to European news website Euractiv, the Dutch health ministry is urging Brussels to impose “comprehensive restrictions on flavors, maximum nicotine levels, and plain packaging” on e-cigarettes and other nicotine products

    In 2023, Dutch MPs voted in favor of a motion by the Democrats 66 party to introduce a tax on e-cigarettes and vapes, although officials say this is unlikely to happen before 2029. Flavored vaping liquids have already been banned in the Netherlands, yet the country is still struggling with a surge in vaping among teenagers, who, health ministers say, are attracted to the flavors.

  • France Extends Ban to Nicotine Pouches

    France Extends Ban to Nicotine Pouches

    Two weeks after banning disposable e-cigarettes, France notified the European Commission it would ban the sale of nicotine pouches as well, joining countries that include Austria, Belgium, Germany, and Luxembourg.

    “The French decree follows in the footsteps of the decision on 13 February to ban disposable e-cigarettes,” a tobacco industry source told Euractiv. “French regulators have been monitoring developments in the new tobacco products sector. Health authorities became alarmed, and the government decided to activate the legislative levers available to it.”

    With an expected annual growth rate of 6.2%, the European nicotine pouch market could reach €1.06 billion by 2030. Europe’s 2014 Tobacco Products Directive covered all traditional tobacco-containing products and included provisions for new tobacco products, however, nicotine pouches contain no tobacco, and thus remain unregulated at the EU level.

    Tobacco and nicotine products are not on the EU’s agenda for 2025, however, the Polish Presidency Council (which sits atop the Commission along with Denmark and Cyprus until June) is looking to move forward with discussions for taxing alternative tobacco products and possibly revising the Tobacco Products Directive.

  • EU Commission to Talk Alternative Tobacco Taxes

    EU Commission to Talk Alternative Tobacco Taxes

    Tobacco tax reform is not on the EU’s agenda for 2025, however, the Polish Presidency Council (which sits atop the Commission along with Denmark and Cyprus until June) is looking to move forward with discussions for taxing alternative tobacco products, according to a non-paper seen by Euractiv.

    Unlike cigarettes, alternative products do not fall under the EU-wide excise framework. The non-paper notes that the tobacco market has undergone “dramatic changes” in recent years, with novel products like e-cigarettes, heated tobacco, and nicotine pouches rapidly gaining popularity.

    EU diplomats are scheduled to discuss the matter today as part of the working party on Indirect Taxation. Euractiv reported that sources close to the discussion confirmed that some industry players are mounting pressure on the Commission to tax new products to avoid an outright ban as their regulatory limbo drags on.

    Each country is free to make its own rules in terms of handling tobacco products. For example, France recently banned disposable e-cigarettes and this week reportedly will do the same for nicotine pouches, joining countries such as Germany, Austria, Belgium, and Luxembourg that have already done so. Other countries are looking to take it even further.

    “We don’t just need a smoke-free generation, we need a nicotine-free generation,” Estonian Health Minister Riina Sikkut said. “Many health ministers support this idea. After the pharmaceutical package, tobacco legislation should be next.”

  • France Bans Disposable E-Cigarettes

    France Bans Disposable E-Cigarettes

    With a final vote in the Senate’s upper house, the French parliament today banned single-use electronic cigarettes, accusing them of being gateways to tobacco addiction for teenagers and harmful to the environment. France is the second EU country to enact such a ban, joining Belgium which did it in December.

    “It is a great victory in a two-pronged battle that we were fighting: an environmental battle against the polluting lithium batteries in these ‘puffs’, and a health battle for our schoolchildren,” lawmaker Francesca Pasquini, the author of the bill, said.

    “A fine piece of cross-party work!” lawmaker Michel Lauzzana said on X. “We are now awaiting the promulgation of this law and its application throughout the country.”

    The legislation was earlier approved by the National Assembly lower house.

  • Belgium First in EU to Ban Disposable Vapes

    Belgium First in EU to Ban Disposable Vapes

    Belgium will ban the sale of disposable electronic cigarettes as of Jan. 1 on health and environmental grounds in a groundbreaking move for European Union nations.

    Health minister Frank Vandenbroucke said the inexpensive e-cigarettes had turned into a health threat since they are an easy way for teenagers to be drawn into smoking and get hooked on nicotine.

    “Disposable e-cigarettes is a new product simply designed to attract new consumers,” he said in an interview, according to NPR.

    Because they are disposable, the plastic, battery and circuits are a burden on the environment. On top of that, “they create hazardous waste chemicals still present in what people throw away,” Vandenbroucke said, adding that he wants tougher tobacco measures in the 27-nation bloc.

    “We are really calling on the European Commission to come forward now with new initiatives to update, to modernize, the tobacco legislation,” he said.

    There is an understanding of Belgium’s decision, even in some shops selling electronic cigarettes, and especially on the environmental issue.

    Once the cigarette is empty, “the battery is still working. That’s what is terrible, is that you could recharge it, but you have no way of recharging it,” said Steven Pomeranc, owner of the Brussels Vapotheque shop. “So you can imagine the level of pollution it creates.”

    A ban usually means a financial loss to the industry, but Pomeranc thinks it will not hurt too much.

    “We have a lot of alternative solutions which are also very easy to use,” he said. “Like this pod system, which are pre-filled with liquid, which can just be clipped into the rechargeable e-cigarette. So we will simply have a shift of clients towards this new system.”