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  • Sweden Rejects EU Plan to Fund Budget with Tobacco Tax

    Sweden Rejects EU Plan to Fund Budget with Tobacco Tax

    Swedish Finance Minister Elisabeth Svantesson called an EU proposal to use revenue from higher tobacco taxes to help fund the bloc’s next long-term budget “completely unacceptable,” saying the proposal threatens the sale of nicotine pouches and undermines national tax sovereignty. Sweden has positioned itself as a model for tobacco harm reduction, citing a smoking rate of just 5% and a decline in smoking-related cancers.

    The proposal, referenced in a document from Germany’s International Affairs Liaison Office in Brussels and submitted to the German parliament, suggests new EU revenue sources for the 2028–2034 budget could include levies on electronic waste and tobacco. Though not yet officially confirmed by the European Commission, the idea adds to growing pressure from at least 15 EU member states to raise excise duties on tobacco products.

    Euractiv reported the European Commission is considering a 139% tax hike on cigarettes, along with steeper levies on alternative products such as e-cigarettes, nicotine pouches, and heated tobacco. Sweden now joins Italy, Greece, Romania, and Bulgaria in opposing the move, primarily to defend nicotine pouches.

    In a post on X, Svantesson said the proposal would result in “a very significant tax increase on white snus,” and that the Commission wants the tax revenue “to go to the EU and not to Sweden.” 

  • Eastern Company Caps Cig Prices After Egypt Ups Taxes

    Eastern Company Caps Cig Prices After Egypt Ups Taxes

    Eastern Company announced that beginning today (July 1), prices for the Egyptian cigarette maker will be capped at EGP 45 ($0.90) per pack following recent tax bracket changes. Company CEO Hany Aman said the company had reached the upper limit of the previous tax bracket, and maintaining those prices was causing losses as rising raw material and transportation costs significantly increased production expenses.

    The new tax laws cap the lowest-tier cigarettes at EGP 48 ($0.96) and the mid-tier at EGP 69 ($1.38). Previously, the lowest tier retailed for EGP 38 ($0.76) per pack, with 60-65% of the price collected being tax. This past weekend, the government amended the Value Added Tax (VAT) on cigarettes, which will increase the minimum and maximum retail prices by 12% annually for three years starting in November.

    Sales were paused on Sunday and Monday to adjust pricing, with the new rates taking effect on Tuesday. Aman said the company is still assessing the full impact of the updated tax regulations and may provide further updates soon.

  • Cook Islands Looking to Raise Tobacco Taxes 30%

    Cook Islands Looking to Raise Tobacco Taxes 30%

    The Cook Islands Cabinet approved a 30% increase in tobacco taxes, aiming to “curb high smoking rates and reduce the burden of non-communicable diseases across the country.” Backed by the Ministry of Health and Te Marae Ora, the island’s main healthcare provider, the new policy will raise tobacco taxes by NZ$125.50 ($76.56) per 1,000 cigarettes or per kilogram of tobacco each year for the next three years. Beginning in 2028, an additional 5% annual increase will be added.

    If passed in Parliament, the tax hike would drive up the average price of a 20-pack of cigarettes from NZ$26.88 ($16.40) to NZ$35.54 ($21.68) by July 2027.

    According to the 2022 STEPS health survey, 35.5% of Cook Islands adults aged 25–64 smoke, including 44% of men between the ages of 18 and 44.

  • Illinois Raises Taxes on All Tobacco and Nicotine Products

    Illinois Raises Taxes on All Tobacco and Nicotine Products

    Several new Illinois tax increases take effect today (July 1), including for gasoline, sports bets, and tobacco and nicotine products. The state is attempting to raise $30 million in new revenue.

    The tax on tobacco and nicotine products other than cigarettes, including vapes, pouches, and cigars, will increase to 45% across the board, regardless of the previous tax rate. Tobacco retailers will also see their annual license fee double, going from $75 to $150 per year.

  • Croatia Raises Taxes on Tobacco Products

    Croatia Raises Taxes on Tobacco Products

    Effective today (July 1), in order to “bolster public finances while also supporting public health,” Croatia implemented new excise duty regulations on tobacco products in a move expected to boost state revenues by €74.7 million by year’s end. The Ministry of Finance said the impact on cigarette retail prices will be minimal, with “no more than a 20-cent increase per pack.”

    Under the updated rules, the specific excise duty on cigarettes will rise from €53.10 to €56.10 per 1,000 cigarettes, while the minimum excise duty will increase to €124.20. Fine-cut and other smoking tobacco will increase from €114.15 to €120.50/kg, heated tobacco will increase from €185.82 to €198.50/kg, cigars and cigarillos will be taxed at €120.50 per 1,000 pieces, e-liquids will be taxed at €0.20 per milliliter, and new tobacco products will be taxed at €120.50/kg.

  • Pakistan Shifting Toward Open Market Tobacco Pricing

    Pakistan Shifting Toward Open Market Tobacco Pricing

    Pakistan’s Economic Coordination Committee (ECC) directed the Ministry of National Food Security and Research to prepare a roadmap for moving away from the current practice of setting Minimum Indicative Prices (MIPs) for tobacco and transition toward open market pricing, sources told Business Recorder.

    While MIPs serve as a price floor to protect tobacco farmers—particularly when supply exceeds demand—they are not support prices and do not involve government subsidies.

    The ECC noted that shifting to market-driven pricing aligns with the broader government policy of phasing out price controls in favor of demand-and-supply dynamics. However, concerns were raised that cess (a local tax on tobacco), calculated as a percentage of MIPs, could be reduced if open market prices rise above government-set minimums.

    Despite approving revised MIPs for various tobacco types for the 2025–26 fiscal year, the ECC emphasized the need for further deliberation before dismantling the current system. The Ministry was instructed to develop a comprehensive transition plan and present it to the ECC in due course.

  • Pakistan Increases Tobacco Tax 240%

    Pakistan Increases Tobacco Tax 240%

    With cigarette manufacturers in Pakistan already pointing to an excessive Federal Excise Duty (FED) as a reason for a significant decrease in sales and a rising black market, the federal government announced it is imposing a 6% withholding tax on cigarette distributors in the 2025-26 budget, senior sources told ProPakistani. This will be an increase from the previous 2.5% rate.

    The provision for withholding tax rates under Section 153 of the Income Tax Ordinance will be changed to charge the new tax on the gross amount of payment received by distributors when they hand over cigarette sticks to retailers.

    It was previously reported that Pakistan’s government was facing pressure from the World Health Organization to increase its FED further.

  • Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns 

    Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns 

    A tobacco tax that’s helped drive Australian cigarette prices to world-leading highs won’t be lowered despite suggestions it has aided a rampant black market. Treasurer Jim Chalmers ruled out changing the tobacco excise Wednesday (June 4), dismissing New South Wales’ (NSW) Premier Chris Minns’ call that lower prices could help curb surging levels of illegal tobacco in the community.

    Federal excise taxes are A$1.40 (91 cents) per cigarette, driving the average cost of a pack of 20 to A$40 ($26). In the last six years, the excise taxes increased from A$16 to A$28 ($10.40 to $18.20) per pack, but the revenue collected by the government has still gone down as smokers turn to a flourishing black market, according to Minns. Tobacco tax revenue peaked at A$16.3 billion ($10.1 billion) in 2020 but has dipped to a projected A$7.4 billion ($4.8 billion) this year.

    Minns said police have better things to do than tobacco enforcement, and the “commonsense option” would be for the federal government to acknowledge the excise was not working. NSW Treasurer Daniel Mookhey insisted he would raise the issue with his federal counterpart despite the flat rejection.

    “We can’t ignore the fact there’s an interaction between the federal exercise and the emergence of illegal tobacco,” Mookhey said.

  • Illinois Increases Taxes on Tobacco, Sports Books

    Illinois Increases Taxes on Tobacco, Sports Books

    Needing to raise an additional $500 million in revenue to balance its budget, Illinois legislators voted to increase taxes on tobacco, vapes, and sports gambling, and expand taxes on out-of-state income for businesses. The budget saw a 3.9% spending increase to $55.3 billion, with the Democratic majority receiving heavy criticism for providing next to no time for public review of the massive spending plan and other major bills, pushing through a previously unseen 3,000 pages of bills in the final 48 hours, according to ABC News.

    The state intends to raise tax rates on any “product that is made from or derived from tobacco,” including cigarettes, chewing tobacco, vaping products and nicotine gum, according to legislators. The tax rate will be raised from 36% of the wholesale price of the products to 45%, according to the legislation, but will not be applied to smoking cessation products, according to the text of the bill.

  • Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s interim government’s proposed national budget for Fiscal Year 2025-26 (July 2025-June 2026) has drawn criticism from anti-tobacco activists for keeping cigarette prices and taxes unchanged across all tiers. Finance Adviser Dr. Salehuddin Ahmed presented the proposed budget, but activists suggest the decision will deprive the government of at least Tk20,000 crore ($2.4 billion) in additional revenue while making cigarettes more accessible to young smokers.

    Activists urge the government to increase cigarette prices across all tiers, particularly by merging the low and medium tiers—which account for 80% of the market—into a single category with a minimum retail price (MRP) of Tk90 ($1.08) for 10 sticks.

    The budget also leaves bidi prices unchanged for the sixth consecutive time, with supplementary duty remaining static for the 10th straight year. Similarly, taxes on smokeless tobacco products such as jarda and gul remain unaltered, sparking concerns among health advocates.

    While the budget raises the advance tax on cigarette manufacturers from 3% to 5% and increases supplementary duty on imported cigarette paper from 150% to 300%, activists argue these measures fall short of ensuring meaningful public health protection.