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  • European Businesses Challenge Proposed Regulatory Review

    European Businesses Challenge Proposed Regulatory Review

    A coalition of 201 European businesses and trade associations has urged European Commission President Ursula von der Leyen to reconsider plans to accelerate revisions to the EU Tobacco Products Directive and Tobacco Advertising Directive. The coalition includes tobacco manufacturers, agricultural producers, retailers, wholesalers, tobacconists, and hospitality businesses, which warn that the proposed changes could affect employment, investment, and tax revenue.

    The appeal reflects growing opposition across the European tobacco and nicotine supply chain to the proposed regulatory changes.

  • PouchSpot Maps Potential Impact of EU Pouch Tax Proposal

    PouchSpot Maps Potential Impact of EU Pouch Tax Proposal

    PouchSpot published a map estimating how the European Union’s proposed tobacco tax package could affect nicotine pouch prices in all 27 member states ahead of a Nov. 9 meeting of EU finance ministers. Using the proposed compromise rates, the company estimates that 10 countries would have to increase pouch taxes beginning in 2028 and 15 by 2032. Germany, Ireland, Croatia, and Slovenia currently have no excise tax on nicotine pouches; a typical 12-gram can in those markets would cost approximately €0.44 more, including VAT, under the initial proposal and about €1.15 more by 2032. Denmark, Finland, and Latvia already impose taxes exceeding €2 per can before VAT.

    PouchSpot calculated the estimates using existing national tax laws and tax authority data, comparing each country’s current excise burden with the proposed EU minimum and adding applicable VAT to the difference. For a typical €5 can, the analysis uses the proposed per-kilogram minimum because it produces the lower tax than the alternative retail-price-based calculation. Denmark’s nicotine-content-based tax and Finland’s additional price-based component required separate assumptions based on a 20-pouch can containing 10 mg of nicotine per pouch.

  • Analysis Shows Increased MEP Engagement with Industry Lobbyists

    Analysis Shows Increased MEP Engagement with Industry Lobbyists

    A POLITICO analysis of European Parliament disclosures found that lawmakers declared more than 400 meetings with tobacco and nicotine industry representatives since the current parliamentary term began in summer 2024, compared with about 100 during the entire 2019-2024 term. About 75% of the meetings involved lawmakers from three right-leaning political groups. Philip Morris International accounted for at least 178 meetings, followed by British American Tobacco with 60, according to data analyzed by POLITICO.

    The meetings covered proposed revisions to EU tobacco product and advertising rules, minimum taxes on tobacco and nicotine products, and public health initiatives. Public health advocates criticized the industry’s access to lawmakers, while industry representatives defended the meetings as legitimate engagement in the legislative process. The Smoke Free Partnership said the data showed increased lobbying around key policy initiatives, while noting that meetings alone do not establish direct influence on legislative decisions.

  • PMI Study Puts EU Economic Contribution at €343 Billion From 2021 to 2025

    PMI Study Puts EU Economic Contribution at €343 Billion From 2021 to 2025

    Philip Morris International (PMI) contributed nearly €343 billion to the European Union economy from 2021 through 2025, including €22.3 billion in spending with European suppliers, €27.4 billion invested across its European operations, and €39.5 billion in exports, according to an economic footprint study prepared by EY-Parthenon and released Oct. 15. The study also found that PMI’s European value chain supported nearly 164,000 jobs in 2025, including about 22,500 direct jobs, and that the company invested €422 million in research and development in Europe. PMI reported an additional approximately €2.2 billion in R&D activities in Switzerland.

    PMI said the figures reflect its manufacturing, supply-chain, research, and commercial activities across the region. The company reported that more than half of its net revenues in Europe came from smoke-free products in the fourth quarter of 2025. Since 2008, PMI has invested more than $16 billion globally in developing, scientifically assessing, and commercializing smoke-free products, including heated-tobacco devices, nicotine pouches, and e-vapor products.

    The report is the second edition of PMI’s EU Economic Footprint Study and covers the period from 2021 to 2025. PMI Europe President Marco Hannapel said the company’s investments and industrial operations contribute to the region’s economic activity and called for regulatory frameworks that support investment and innovation. The full EU Economic Footprint Study is available from PMI.

  • Eight EU Countries Seek Broad Nicotine Restrictions

    Eight EU Countries Seek Broad Nicotine Restrictions

    Eight EU member states — the Netherlands, Belgium, Finland, France, Hungary, Latvia, Slovenia, and Spain — are urging the European Commission to significantly expand the bloc’s tobacco and nicotine rules as part of the review of the Tobacco Products Directive and Tobacco Advertising Directive. In a letter to Health Commissioner Olivér Várhelyi, the countries called for maximum nicotine limits, standardized products and devices, plain packaging, and broad flavor restrictions across authorized nicotine categories. They also want the regulatory framework to allow individual countries to ban nicotine pouches and disposable e-cigarettes.

    The governments are also seeking a ban on advertising for nicotine products, including influencer and creator content, along with restrictions on cross-border online sales. Their proposal would prohibit new nicotine and nicotine-like products, as well as nicotine-free products designed to resemble nicotine products, from entering the EU market. The countries said the revised framework should keep pace with product and marketing developments and support the EU’s goal of becoming smoke-free by 2040.

  • Report Finds EU Lagging in Fight Against Illicit Tobacco

    Report Finds EU Lagging in Fight Against Illicit Tobacco

    The European Court of Auditors (ECA) says the European Union lacks reliable data on the size and impact of the illicit tobacco market and that fragmented national rules and weak coordination are leaving gaps that criminal groups can exploit. Euractiv reported that the auditors estimate the illicit tobacco trade costs the EU and its member states about €13 billion in lost revenue annually, although the ECA cautioned that the estimate should be treated carefully. Euractiv also highlighted the ECA’s criticism of limited transparency around bilateral agreements between EU governments and tobacco companies to combat illicit trade.

    EUobserver reported that the ECA found one in 10 cigarettes made in the EU is either illegally produced or smuggled, while vapes and heated tobacco products account for 13% of the illicit market by value. EUobserver also said the European Anti-Fraud Office helped prevent €178 million in lost tax revenue in 2025 and that the European Commission has accepted most of the ECA’s recommendations but rejected some proposals, including a coordinated EU monitoring system and a framework for assessing member states’ effectiveness in fighting illicit tobacco.

  • EPP Accused of Being Tobacco ‘Mouthpiece’ Ahead of Vote

    EPP Accused of Being Tobacco ‘Mouthpiece’ Ahead of Vote

    An article published by Euractiv today (June 16) reports that the European People’s Party (EPP), the largest group in the European Parliament, is facing criticism from public health organizations and political opponents ahead of a key vote on EU tobacco policy, with critics accusing the party of advancing positions aligned with the tobacco industry. The dispute centers on the European Commission’s ongoing review of the Tobacco Products Directive (TPD), including potential new rules for nicotine pouches, vaping products and other reduced-risk alternatives.

    According to Euractiv, health advocates argue the EPP has opposed stricter restrictions on newer nicotine products, while the EPP maintains that regulation should be evidence-based and account for harm reduction. The debate comes as the EU considers significant revisions to tobacco and nicotine regulations that could affect product availability, taxation and market access across the bloc.

  • Report: New 15% Tobacco Tax One of Five Streams EU Considering  

    Report: New 15% Tobacco Tax One of Five Streams EU Considering  

    Reuters reported that the European Union is discussing five new revenue streams that would help fund its seven-year budget, allowing for new priorities like defense ​and competitiveness and service joint debt, while limiting cuts to agriculture and regional aid.

    The proposed streams for 2028-2034 are an emissions trading system, a carbon border adjustment mechanism levy, a non-collected electronic ⁠waste tax, a corporate ​resource for ⁠Europe levy, and a tobacco excise duty. The tobacco tax would be a new 15% uniform call-rate tobacco duty, paid by EU member states from national budgets, which would bring in an estimated €11.2 billion ​a year, the ​Commission says.

    By a vote of 370-201, EU’s parliament voted to increase its budget 1.26%, increasing total spending to about €1.94 trillion.

  • Cyprus Compromise May Solve EU Tobacco Impasse

    Cyprus Compromise May Solve EU Tobacco Impasse

    International Policy Digest is reporting that a new compromise proposal from Cyprus may help break the long-standing deadlock among EU member states over revising the Tobacco Excise Directive, which has not been updated since 2011. The European Commission’s 2025 proposal sought to raise minimum excise duties and extend taxation to newer products such as heated tobacco and nicotine pouches, but faced strong opposition from several countries concerned about market disruption and illicit trade.

    The Cyprus proposal retains higher taxes and broader product coverage but introduces a more gradual approach, including transition periods for implementation and limits on automatic inflation-linked increases. It also offers more flexibility for member states in applying taxes to newer nicotine products, addressing key concerns raised in earlier negotiations that stalled progress.

    Initial reactions from EU governments suggest cautious support for the revised approach, though unanimous agreement from all 27 member states remains required. The outcome is time-sensitive, as failure to reach a deal during Cyprus’s presidency could shift negotiations to Ireland, where officials are expected to push for stricter tax measures.

  • EU Smoking Rate Drops 4% Since 2012

    EU Smoking Rate Drops 4% Since 2012

    The European Commission reported that smoking prevalence across the European Union is currently 24% as it released an evaluation of the bloc’s tobacco control framework on April 2, down slightly from 28% in 2012. The review assessed the performance of the Tobacco Products Directive and the Tobacco Advertising Directive, citing progress in public health protection, reduced tobacco-related deaths, and improved internal market functioning through harmonized rules on labeling, ingredient reporting, packaging, traceability, and cross-border advertising restrictions.

    The evaluation also flagged gaps in current legislation amid the rapid growth of novel nicotine products such as e-cigarettes, heated tobacco, and nicotine pouches, which the Commission said pose particular risks for youth and may act as a gateway to nicotine addiction. While traditional advertising has been curtailed, digital and covert online promotion remains a challenge. Based on the findings, the Commission will begin an impact assessment and consultations ahead of a planned proposal in 2026 to revise the EU’s tobacco control laws.