Tag: europe

  • 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.

  • Geek Bar Returning to Europe

    Geek Bar Returning to Europe

    Geek Bar announced it is officially returning to the European market, launching its Geek Bar Spark across “select countries” this month, with “additional markets and flavor options to follow.” The new-generation, reusable system includes a fast-charging battery, supports up to 1,000 puffs per prefilled pod, and offers new “Europe-specific flavors,” including Moonshine Cherries, Tropical Punch, Pineapple Lemon Fizzy, and Apple Cider.

  • Gap Growing Between EU’s Public-Health Ambitions, Economic Concerns

    Gap Growing Between EU’s Public-Health Ambitions, Economic Concerns

    The European Commission’s plan to overhaul the EU’s tobacco taxation directive has met resistance from numerous Member States, revealing deep divisions over how far and how fast the bloc should go in taxing nicotine products. The proposal, first unveiled on July 16 and discussed for the first time at the Ecofin Council in Luxembourg last week, would sharply raise minimum excise duties on cigarettes and extend taxation to new categories such as vaping and heated tobacco.

    Commissioner for Climate and Clean Growth Wopke Hoekstra defended the reform as long overdue. “Europe ranks among the highest in the world for the number of smokers,” he said. “Moreover, there are new products deliberately designed for young people, 15-year-olds, which create a new addiction to nicotine. We cannot allow the industry to reverse the narrative, spreading lies as it has already done with traditional cigarettes.”

    Under the Commission’s plan, the minimum duty on cigarettes would rise from 60% to 63% of the weighted average retail price (WAP) and from €90 to €215 per 1,000 pieces. Rolling tobacco would see its threshold climb from 50% to 62% of WAP and from €60 to €215 per kilo. The reform also introduces EU-wide minimum rates for heated tobacco and e-cigarettes, starting in 2028 at 45% of WAP or €88 per 1,000 pieces and increasing through 2032.

    While most governments support the goal of improving public health, at least 12 Member States voiced objections. Italy, Bulgaria, and Romania warned that higher taxes on traditional cigarettes could fuel illicit trade. “We have to examine the interaction between increased tax thresholds and the trafficking of illegal cigarettes,” said Italy’s economy minister Giancarlo Giorgetti.

    Croatia, Greece, Luxembourg, Malta, the Czech Republic, Slovakia, and Hungary described the proposed thresholds as too high. Hungary fears for its cigarillo sector, while Luxembourg rejects the Commission’s plan for automatic adjustments based on purchasing power.

    Sweden and Finland objected to taxing snus, with Swedish finance minister Elisabeth Svantesson insisting that “taxes should reflect the degree of harm, not the product type.”

  • 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
  • ESPAD Ireland Sees All-Time Low in Smoking, Vape on Rise 

    ESPAD Ireland Sees All-Time Low in Smoking, Vape on Rise 

    Ireland recorded its lowest levels of teenage smoking and alcohol consumption in three decades, according to the 2024 Irish report of the European School Survey Project on Alcohol and Other Drugs (ESPAD). However, the findings saw increases in e-cigarette use, alternative nicotine products, and adolescent gambling.

    ESPAD Ireland said 12% of students reported being current smokers, with daily smoking falling to just 2%, both all-time lows in Ireland’s 30 years of participating in the survey. However, 32% of respondents said they had tried e-cigarettes, and 7% reported daily use. Of those who tried vaping, 76% never used a cigarette. Cannabis use also dropped from 19% in 2019 to 12% in 2024.

    “While the downward trend is encouraging, the data also reveals the continuing challenge: young people are still being drawn into tobacco and nicotine use—be it cigarettes, e-cigarettes, or emerging nicotine products,” said Jennifer Murnane O’Connor, Minister of State for Public Health, Wellbeing and the National Drug Strategy. “We must act decisively to break this cycle.”

  • Get Packing

    Get Packing

    Once the EU Packaging and Packaging Waste Regulations come into force, tobacco companies will have around 18 months to ensure all their packaging in the market is compliant. | Photos: Parkside

    Preparing for Europe’s new waste regulations

    By George Gay

    In July, Parkside issued a press note describing some of the ways in which flexible packaging might be used to help manufacturers in responding to the EU’s nascent Packaging and Packaging Waste Regulations (PPWR), ideas that Tobacco Reporter followed up on in a conversation with the company’s sales account manager of tobacco, Laura Haggerty.

    Parkside’s Recoflex range includes plastic and paper-based materials that are suitable for recycling.

    Tobacco Reporter: Would you please explain to those not entirely familiar with the world of packaging how you define the term “flexible packaging?”

    Laura Haggerty: Flexible packaging refers to any item of packaging that is made from a nonrigid material. In the tobacco industry, it’s most commonly seen in the form of loose-tobacco pouches, the shrink-wrap film that we use to protect cigarette cartons, and cigarette carton liners.

    However, flexible packaging can be made of almost any material, including plastic, bioplastic, paper and aluminum foil. Each material has its own pros and cons, which is why they are often combined in the form of laminates. A tobacco packaging will often contain several laminate materials to help keep its contents fresh by protecting against moisture and oxygen.

    Your press note says a preliminary deal on the PPWR was reached in April. Do you know when the regulations will be finalized?

    The provisional text of the deal has been finalized and will come into force at the end of 2024, but some key details will not be decided for several years.

    The EU will investigate the viability of bio-based materials in 2027 while the design for recycling guidelines will not be set until 2028. This means PPWR will not take its final form until the end of the decade at the earliest.

    When will the regulations be enforced?

    While PPWR comes into force at the end of this year, businesses have 18 months to ensure they comply with the new rules. That means, in practice, they will be enforced from mid-2026.

    What will be the main differences between the packaging regulations under PPWR and those under the Packaging and Packaging Waste Directive (PPWD) already in force?

    The main difference is that PPWR is a regulation whereas PPWD is a directive. In EU law, directives set a goal that is legally binding, but member states have a degree of freedom in how they reach that goal. Regulations are entirely legally binding, setting out policies that member states must follow in full, even if that means rewriting that country’s laws. This will also harmonize regulations across the EU, which should help with implementation.

    This is important as it will see extended producer responsibility (EPR) rollout across the EU. EPR is a policy approach that makes packaging producers responsible for the cost of packaging waste management. These costs are meant to encourage producers to design out unnecessary packaging while also incorporating recyclable materials where possible.

    PPWR also introduces new, more ambitious targets for waste reduction that each country must meet. These targets are to reduce packaging waste per capita by 5 percent by 2030, 10 percent by 2035 and 15 percent by 2040 compared to 2018 levels. It includes mandatory reuse and refill targets for certain packaging types, more restrictions on single-use plastics and PFAS [perfluorinated and polyfluorinated alkyl substances] chemicals, and new labeling requirements, among many other things.

    What are the main ways in which the new regulations will affect the tobacco/nicotine industry?

    The introduction of EPR will have a major effect. Tobacco companies operating in the EU will have to cover the costs of waste disposal, so they will find margins squeezed unless they can redesign packaging to be easier to recycle—or use less packaging altogether. When the design for recycling guidelines is finalized, this may become mandatory.

    This will affect the use of materials like shrink-film, which is currently problematic to recycle in existing infrastructure, so tobacco companies may have to look at other barrier materials to protect their products through the supply chain.

    Part of PPWR also includes new labeling requirements, which tobacco companies will have to incorporate alongside their existing strict labeling obligations.

    At this stage, can and should tobacco/nicotine product businesses start considering their options and even taking steps to change at least some of their packaging?

    Tobacco companies should absolutely look at ways they can change their packaging. Once PPWR comes into force, they will have around 18 months to ensure all their packaging in the EU market is compliant. This does not leave much time to evaluate, redesign and produce new packaging. Remember that as tobacco packaging is already highly regulated in the EU, any changes must also comply with existing legislation.

    Looking at the wider tobacco industry, including its new-generation nicotine products, which of its packaging materials will be affected by the likely changes brought in by the PPWR?

    Flexible packaging like pouches will likely be affected as they rely heavily on soft plastics, which are difficult to recycle. As mentioned, this will also affect the shrink-wraps and the inner liners commonly used in flip-top cartons and other rigid packaging, so it will likely have wide-reaching consequences for all tobacco packaging.

    Should the industry try to eliminate all “plastic materials” from its packaging, however that term is defined, or should it aim to eliminate only those plastics that do not break down in an environmentally friendly manner and become “forever” particles?

    Plastic is often painted as a villain, but the truth is much more nuanced than that. Unnecessary plastic use is a problem, but solving it needs a holistic, considered approach. Simply eliminating all plastics would have a disastrous effect on the environment in the form of increased product waste.

    Compostable materials are a possible solution and an area where we are a market leader. We produce accredited compostable pouches that can break down in domestic compost heaps and industrial organic recycling facilities. These materials are commonly used for pouches, but they also have applications as wraps for cigars and liners for cartons.

    Which of the Parkside packaging innovations mentioned in your press note would be appropriate for tobacco industry application?

    We work closely with our customers in the tobacco sector, so many of our solutions are ideal for tobacco packaging applications. Our Recoflex range includes plastic and paper-based materials that are suitable for recycling and can be tailored with high barrier coatings, metallization and more. We produce pack wraps, individual wraps for cigars, inner liners, resealable lock-and-peel pouches, and compostable pouches, all of which are suited to many applications within tobacco packaging.

    Will the arrival of the PPWR regulations provide an opportunity for the tobacco/nicotine industry to make radical changes to its packaging, or do tobacco/nicotine industry-specific regulations make such moves impossible or unlikely?

    The strict industry-specific regulations do pose some challenges when it comes to labeling. Packaging will need to contain labeling that describes its material composition and recyclability, so incorporating these new labels in a way that complies with existing restrictions may require some redesigning.

    Restrictions on pack shape, such as restrictions on slimline cartons, mean it is difficult to radically rethink many tobacco packaging formats. However, it may be possible to reduce the weight of packs using lighter weight materials combined with water-based barrier coatings to ensure performance.

    Presumably, there will be a cost associated with tobacco industry players changing their packaging. How can they minimize such costs while remaining compliant?

    We recommend working closely with a trusted packaging partner. At Parkside, we have worked closely with many tobacco companies for many years. That means we have developed the expertise needed to tailor packaging solutions to ensure they meet the needs of our customers in terms of both pack performance and compliance. This ensures packs can be designed and produced efficiently, which is always the best way to minimize costs.

    Progressive businesses are generally not opposed to reasonable regulations provided they are evenly applied and competition remains on a level playing field. Do you have any insights, based on your experience with the PPWD, of how strictly and how evenly the new regulations are likely to be applied?

    Part of the idea of PPWR is to harmonize regulations across the EU, so that would indicate the intention is to create a level playing field. However, it could still be subject to some variations as different member states have differing infrastructures. A country that already has robust recycling and waste management infrastructure in place will find it much easier to adapt.

    As a result, we anticipate PPWR will be applied more evenly than PPWD was—but there may still be some divergence in places.

    Finally, while the EU is hugely important to your business, does Parkside focus on other parts of the world?

    Certainly. We have invested heavily in our Malaysian site in recent years, meaning we now offer a comprehensive suite of services and solutions to tobacco companies across APAC [Asia-Pacific] countries as well as Europe. This gives us a greater level of agility and flexibility to operate on a global scale.

  • At the Crossroads, Again

    At the Crossroads, Again

    Photo: jorisvo

    There are still more unknowns than knowns about the shape of future European regulation for novel nicotine products.

    By Barnaby Page

    Europe’s relationship with novel nicotine products has always been a mixed one. On the one hand, the more extreme forms of hysteria about youth vaping or supposed health risks have been relatively absent from the European scene; the U.K. in particular has been regarded as perhaps the most pro-vaping major economy in the world. And regulation—in most countries, heavily shaped by the European Union’s Tobacco Products Directive (TPD)—is in some respects light-touch.

    Most notably, rather than following the U.S. model, which in theory requires marketing authorization by the Food and Drug Administration before products can be sold, the EU has eschewed the premarket approval approach and simply asks for products and businesses to be compliant with the TPD’s requirements.

    But if Europe (which for the rest of this article mostly means the EU and its member states) has been looser in its regulatory approach than the U.S. in some ways, many of the requirements that it does make are quite onerous: the 20 mg per milliliter limit on nicotine strength, for example. It is also well known that the TPD as originally conceived was going to be far more restrictive and was only scaled back after pressure.

    And there have been distinct signs lately of Europe becoming more cautious. Most flavors were banned EU-wide in heated-tobacco products; several countries have enacted, or will enact, disposable e-cigarette bans; the Netherlands, usually famed for its tolerance, is an example of a country that has started showing a lot of skepticism toward novel nicotine products; even in the U.K.—no longer an EU member—government support for tobacco harm reduction seems to be ebbing away a little, though it certainly hasn’t turned into outright opposition yet.

    Set against this background, there is concern that the next version of the TPD may make major changes to the EU’s regulatory framework for novel tobacco products, reflecting conservative positions.

    So far, nothing is known for sure about the actual content of the next TPD or about any updates to the lesser-known Tobacco Advertising Directive and Tobacco Excise Directive—though a European Commission spokesperson did confirm to Tamarind Intelligence, late last year, that vaping would be a focus of the TPD. The commission’s job with the TPD is essentially to formulate the legislation, which representatives from all the EU member states, in the European Parliament and the Council of the European Union, then vote on.

    However, looking at what is already happening across Europe gives some indicators of what’s possible—action against disposable vapes in France and Belgium, for example, or against flavored products in Finland and Hungary. Though it’s true that EU policy certainly does not derive directly from localized policy in member states, there are trends visible that are bound to be reflected in Brussels. It’s also worth noting that the much-anticipated swing to the populist right in the most recent European elections failed to fully materialize, which may well mean that the EU will continue to favor tight, precise regulation and not care too much whether it is seen as “business-friendly.”

    First, disposable bans: There have been debates or even legislation in most major European countries over banning disposables, partly because of youth usage but also because of environmental impacts. Even if not all of these come to pass, the fact that an outright prohibition on disposable vapes is so widely seen as a reasonable, proportionate regulatory response—not an unrealistic or extremist one—must make an EU-wide ban a possibility.

    Second, flavors: There is a precedent for some kind of vape flavor ban in the existing EU ban on flavors in heated tobacco, and a number of EU health ministers have given such a measure their support. This would be a greater blow to the industry than a disposables ban, though a crucial question would be exactly what is outlawed and what is permitted.

    The most draconian position would be a reduction of the market to tobacco and perhaps menthol/mint flavors. There could, however, be a middle ground with some other flavors allowed that still removed the more outre and (supposedly) youth-tempting ones from the market; there have also been suggestions that a ban on extreme flavor descriptions, rather than the actual flavors, could achieve the same end. So there are quite a lot of options on the table when it comes to regulation of flavors, and this is perhaps the area to watch most closely.

    Other major areas likely to come under consideration include taxation, and an extension of the existing EU ban on snus (from which only Sweden is exempt) to tobacco-free nicotine pouches.

    An equally big question, however, is when any of this will happen. The process of revising the TPD has been underway for more than two years now, suffering several delays and changes in its schedule.

    For example, the European Commission’s Directorate-General for Health and Food Safety (DG Sante) had originally promised to finalize its evaluation report on tobacco policy last year, but when the commission published its work program for 2024, it made no mention of revising tobacco policy. Therefore, it seems unlikely that there will be major announcements on the TPD or other Europe-wide tobacco regulation in 2024.

    When it eventually does happen, it will be the culmination of a process that started more than two years ago, when the commission launched a call for evidence, which ran from May 2022 to June 2022. This was then followed by a public consultation from February 2023 to May 2023. Eventually, the results of these consultations should be taken into account by the commission when it drafts a directive to be discussed by the Parliament, but so far … nothing.

    So it’s been a long period of near silence even though many expected action—and debate—much sooner. The delays may be partly down to divergence in member states’ positions on tobacco control—it’s going to be hard to come up with Europe-wide policies that at least partially satisfy enough member states and enough competing principles.

    Although the European Commission will be the one to propose the new policies, it is the legislators in the Parliament (and the Council of the European Union, the other “house” of the European legislature) who ultimately vote for or against it. So, while the commission may well be likely to maintain a conservative or even quasi-prohibitionist stance, it’s very possible that Members of Parliament (MEPs) may disagree. Some MEPs who spoke with ECigIntelligence said that they were prepared to fight conservative approaches to novel nicotine products that may be counterproductive for harm reduction, and the influx of new MEPs after this year’s election adds a further level of uncertainty.

    Moreover, positions on novel nicotine products cannot easily be predicted from political affiliation. Generally, the more right-wing a party is, the more easygoing toward novel nicotine products it tends to be (and this would in theory make the broadly rightward trend in politics a positive one for harm reduction’s proponents), but this is far from consistent and there are many exceptions (as indeed there are to that rightward trend).

    For example, arguments prioritizing consumer education and freedom of choice over strict policies, historically usually attributed to right-wing parties, are often also shared by left-wing parties. The national origin of a politician may be just as significant as their nominal position on the left-right spectrum—a left-winger from a country with very strict regulation of tobacco products is often likely, we find, to be more sympathetic to that kind of legal regime than a left-winger from a country with a much lighter touch.

    So there are plenty of unknowns, and of course the unusual position of the U.K.—the biggest market for novel nicotine products in Europe—is another one. When the last TPD appeared, the U.K. was still a member of the EU, and so it adopted the TPD’s measures into its own domestic legislation (as all EU member states must do with European directives). But it has since left the union, via Brexit. The current British government certainly seems to have a hardline attitude on disposables, but there are also indications that it remains supportive of harm reduction, so how aligned the U.K. will remain with the rest of the EU in the future is very much an open question. One distinct possibility is that even if Britain starts to tighten regulation on some aspects of novel nicotine products, it remains more liberal than an EU that gets even tougher.

  • Vaping Surpasses Smoking Among European Youth: WHO

    Vaping Surpasses Smoking Among European Youth: WHO

    Photo: Maksym Yemelyanov

    Vaping has surpassed smoking among adolescents in Europe, according to a new report by the World Health Organization.

    The global health body found that among 15-year-olds, 32 percent had used an e-cigarette and 20 percent consumed vaping products in the past 30 days.

    “The widespread use of harmful substances among children in many countries across the European region—and beyond—is a serious public health threat,” said Hans Henri P. Kluge, WHO regional director for Europe. “Considering that the brain continues to develop well into a person’s mid-20s, adolescents need to be protected from the effects of toxic and dangerous products. Unfortunately, children today are constantly exposed to targeted online marketing of harmful products.”

    Historically, there has been a difference between boys and girls, with more boys smoking than girls. With e-cigarettes, girls reach the same level of use by 15 as boys and even outpace them after 15.

    While acknowledging that some health authorities view e-cigarettes as a positive alternative to smoking for adults, the WHO expressed concern about aggressive targeting by manufacturers of a younger market, which has contributed to a particularly sharp rise in consumption between the ages of 13 and 15, according to the organization.

    The WHO report calls for e-cigarettes to be incorporated into smoke-free policies, with similar measures to restrict marketing, reduce toxicity, remove flavors and increase taxation.

    The health body has already called for e-cigarettes to be made available only to those who are trying to quit smoking, where other proven cessation strategies have been exhausted. It has also called for e-cigarettes to be regulated like medicines rather than being sold as consumer products.