European tobacco taxes will increase significantly, with some products seeing a rise of up to 258%. It is also considering including vapes in the tax scope to upgrade tobacco control policies and generate approximately 15.1 billion euros (17.5 billion US dollars) in additional tax revenue.
Key points:
- The European Union is considering raising the tax rate on some tobacco products to 258%.
- This move could bring approximately 15.1 billion euros (17.5 billion US dollars) in additional tax revenue to the European Union.
- The plan also includes vapes in taxation.
European tobacco taxes rise sharply: up to 258% for some products
This move could bring approximately 15.1 billion euros
According to an internal impact assessment document obtained by the European Edition of Politician magazine on the 13th, local time. The European Commission plans to increase the tax rate on cigarettes by 258%, while that on regular cigarettes will be raised by 139%.
The report indicates that the European Commission has proposed three tax reform plans and is inclined to implement the one with the highest tax rate, thereby increasing tax revenue by approximately 15.1 billion euros (17.5 billion US dollars). If this plan is implemented, the tax rate for cigarettes will increase from 90 euros (104 US dollars) per 1,000 cigarettes to 215 euros (249 US dollars), and the tax rate for hand-rolled tobacco will increase from 60 euros (69 US dollars) per kilogram to 215 euros (249 US dollars). In addition, the tax rate for cigar products known as “leaf cigarettes” will sharply increase from 12 euros (14 US dollars) per kilogram to 143 euros (166 US dollars), a rise of up to 1,092%.
Meanwhile, the tax reform plan also involves vapes. A tax of 0.36 euros (0.42 US dollars) will be levied on e-liquid with a nicotine concentration of more than 15 milligrams per milliliter, while a tax of 0.12 euros (0.14 US dollars) will be levied on products with a concentration lower than this standard.
The plan also includes vapes in taxation.
The European Commission emphasized in the document that the increase in tobacco taxes and prices has long been proven to be the most effective measure to reduce overall tobacco consumption. The current minimum tax rate has failed to effectively reduce tobacco consumption. Over the past ten years, the decline of tobacco consumption by approximately 40% was the result of tax policies.
Furthermore, the European Commission has previously been under pressure from member states to revise the Tobacco Consumption Tax Directive (TED) due to the sharp increase in the use of new tobacco products such as vapes, especially among teenagers and young adults. TED is a regulation formulated in 2011, stipulating the minimum tobacco tax rate, and member states set their tax rates based on this.
