New tobacco tax - the European Union wants to make smoking significantly more expensive
The European Union is preparing for a significant increase in tobacco taxes aimed at curbing the growing black market within member states. A new proposal from the Danish presidency of the Council of the EU has sparked a new wave of debate among governments and consumers.
According to the proposal, taxes on modern tobacco products — such as heated tobacco and nicotine pouches (snus) — will increase by up to 132%, more than double. Analysts in the sector estimate that a pack of 20 heated tobacco sticks could become more expensive by at least €1.80.
However, a number of countries strongly oppose this plan. Sweden, for example, rejects any tax increase on nicotine pouches, and several other countries believe that the EU's approach will not address the underlying problem. Countries with high taxes like Belgium, the Netherlands, and France are experiencing widespread illegal trade, and insiders warn that raising prices could fuel smuggling rather than curb it.
Proponents of the proposal believe that harmonizing taxes at the EU level could help reduce illegal sales between countries. However, experts point out that a large portion of these products is smuggled from non-EU countries, where taxes will remain unchanged, thus reducing the effectiveness of the proposed measure.
Experts in the sector warn of serious side effects. High taxes may lead consumers back to more harmful cigarettes, a decline in tax revenues instead of an increase, and difficulty for smokers to transition to less harmful alternatives such as heated tobacco and nicotine pouches. They emphasize that public health may ultimately be harmed.