The European Union is set to discuss a stringent new proposal for revising the Tobacco Excise Directive (TED) on December 4th. Championed by the Danish EU Council Presidency, this plan outlines drastic tax increases across all smoking and nicotine products, potentially raising cigarette prices by nearly €2 per pack. The proposal is even more severe than the European Commission's initial draft from July 2025, which already faced significant backlash.
Under the Danish plan, heated tobacco products could see tax hikes of 132% compared to the initial proposal, while nicotine sachets face a staggering 1000% increase. Innovative smokeless products would be taxed at a minimum of €360 per kg, significantly higher than the €215 per kg for traditional smokeless tobacco. Critics argue this paradoxically penalizes less harmful alternatives more heavily than some combustible products, potentially stalling industry innovation in harm reduction.
Despite public opposition—92% of 17,000 citizens rejected the initial draft in a consultation—the Commission appears determined. However, member states like Italy, Greece, Sweden, and Bulgaria have voiced strong resistance. Concerns center on the potential for job losses in the tobacco supply chain, particularly in countries with significant industry investment like Italy, and the risk of driving consumers towards the illegal market due to prohibitive costs. Furthermore, opponents object to the idea that the estimated €15 billion in extra revenue would go to the European Commission rather than national coffers.
