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Tag: EU

  • EU Trying to Stop “Tobacco Tourism”

    EU Trying to Stop “Tobacco Tourism”

    As the European Commission considers sweeping tobacco tax reform aimed at narrowing price gaps across the continent, high-income countries like Luxembourg would be hit hardest, RTL Today, Luxembourg’s main television channel, reported. The reform would be meant to deliver a major blow to “tobacco tourism.”

    Most of Luxembourg’s €1.4 billion in 2024 tobacco tax revenue came from foreign buyers, with less than 5% of the tobacco sold in the nation consumed locally. Currently, packs of cigarettes in Luxembourg cost less than €6, far below prices in neighboring France (€13) and the Netherlands (€10), attracting cross-border shoppers and smugglers.

    Though not yet formalized, the WHO’s calls for price hikes on harmful products by 2035 would raise Luxembourg’s prices €3.50 per pack of cigarettes, or 60%. RTL Today said Luxembourg’s Finance Ministry is monitoring the situation.

  • Irish PM Says Big Tobacco Using Old Playbook for Vape

    Irish PM Says Big Tobacco Using Old Playbook for Vape

    Speaking at the World Conference on Tobacco Control, Irish Prime Minister Micheál Martin urged governments worldwide to adopt “the strongest possible measures against vaping,” warning that e-cigarette manufacturers are replicating the “predatory playbook” of the traditional tobacco industry—particularly by targeting youth.

    “All the same issues we had to deal with in respect of cigarettes, we have to deal with vaping,” said Martin. “We’re catching up a bit later in Ireland with that.”

    Ireland’s new restrictions on flavorings, product placement, and packaging design are scheduled to be enforced in February 2026, based on legislation introduced by the previous government. Youth vaping is accelerating across Europe—10.8% of adolescents aged 13–15 now use some form of tobacco, including e-cigarettes.

    The rise in youth vaping spurred the European Commission to update its Recommendation on Smoke-Free Environments to explicitly include vapes and heated tobacco products, urging member states to ban vaping wherever smoking is prohibited, and is now further considering flavor bans, restrictions on online sales, and heavier taxation.

  • EU Weighs Major Tobacco Tax Overhaul

    EU Weighs Major Tobacco Tax Overhaul

    The European Commission is preparing a sweeping reform of the Tobacco Excise Tax Directive (TED), targeting a sharp increase in taxes on traditional cigarettes and rolling tobacco, with more modest hikes planned for alternative products like heated tobacco and e-cigarettes, according to an internal working document seen by Euractiv.

    Key Highlights from the Draft Proposal:

    • Cigarette Tax: Proposed increase of 139%, from €90 to €215 per 1,000 units.
    • Rolling Tobacco: Tax hike of 258%, from €60/kg to €215/kg, aligning its burden with cigarettes.
    • Cigars & Cigarillos: Massive proposed increase of 1,090%, to €143/1,000 units or per kg.
    • Shisha/Waterpipe Tobacco: Proposed at €107/kg.
    • Nicotine Pouches: Suggested tax of €143/kg.
    • E-Cigarettes: Tax based on nicotine strength:
      • >15mg/ml: €0.36/ml
      • ≤15mg/ml: €0.12/ml
    • Heated Tobacco:
      • Unit-based: €108/1,000 units
      • Weight-based: €155/kg
      • Roughly 50% lower tax burden compared to cigarettes

    Policy Context & Challenges:

    • A 15-country coalition, led by France and the Netherlands, is urging stronger EU-wide tobacco controls, including taxation on emerging nicotine products.
    • The Commission says the current rules are “no longer fit for purpose.”
    • However, changes to the TED require unanimous support from all EU member states — a high bar amid diverging national interests.
    • Italy, Greece, and Romania have objected to treating alternative products (like heated tobacco) the same as combustible cigarettes, citing harm reduction arguments
  • EU Sees Highest Rate of Illicit Cigarettes Since 2015

    EU Sees Highest Rate of Illicit Cigarettes Since 2015

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, smokers in the European Union consumed 38.9 billion illicit cigarettes in 2024, a 10.8% increase versus 2023, the highest level since 2015. That number accounts for 9.2% of total cigarette consumption, with governments losing as much as €14.9 billion in tax revenues at a time when many countries face intense economic pressures and rising black markets.

    PMI called for effective policymaking to counter the growing threat of illicit trade, and said it believes that steep and abrupt tax increases are exacerbating the issue and benefitting criminals who supply unregulated, untaxed, and inferior products. To combat this growing threat, PMI urges the adoption of evidence-based regulation with balanced and predictable taxation through tax calendars, continued public-private collaboration, and enhanced support of regional and national law enforcement agencies.

    “The illicit tobacco trade threatens the European economy, public health, security, and social stability; today, higher-taxed and higher-priced markets such as France and the Netherlands are especially impacted by illegally imported and counterfeit goods,” said Christos Harpantidis, PMI’s Senior Vice President, External Affairs. “Its massive socioeconomic impact negatively affects tax collection, job creation, and legitimate businesses, the engine of our European economies. The availability of cheap, unregulated cigarettes in the underground economy also impairs efforts to reduce smoking rates and achieve a smoke-free future.”

    France has the largest illicit market in Europe, reaching 18.7 billion illicit cigarettes consumed last year, 37.6% of total consumption. The Netherlands saw the largest increase in illicit cigarettes, which doubled to 17.9% of total consumption.

    A detailed overview of the results, country profiles, and methodology of the KPMG study is available here.

  • 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.