EU tobacco tax revision faces headwinds over fiscal autonomy and harm reduction

The European Commission’s proposal to revise the Tobacco Taxation Directive (TTD), raising the minimum excise duty floor for cigarettes and introducing new taxes on emerging nicotine products, has triggered a contentious debate among public-health advocates and industry representatives over the balance between deterrence, fiscal stability, and harm-reduction strategies.

Unveiled in July 2025 and scheduled to take effect from 2028, the revision seeks to secure tax revenues while advancing the Europe’s Beating Cancer Plan objective of reducing smoking prevalence to under 5% by 2040. The central flashpoint is the Commission’s plan to increase the minimum EU excise duty on cigarettes by more than 140%.

Unlock access

Want the full analysis? Let's talk

We share insights with professionals we’re in contact with. Let us know a bit about your interest.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Name*

Want the full analysis? Let's talk

We share insights with professionals we’re in contact with. Let us know a bit about your interest.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Name*