A coalition of fifteen European Union member states, including major economies like Spain, Germany, and France, has formally urged the European Commission to modernize and strengthen the bloc's directive on tobacco taxation. In a joint letter addressed to Commission President Ursula von der Leyen, the finance and economy ministers from these nations declared the current legislative framework, last updated in 2011, "completely outdated" and "no longer fit for purpose."
The ministers, including Spain's First Vice President MarÃa Jesús Montero and Economy Minister Carlos Cuerpo, argue that the existing directive is insufficient to address the "significant challenges posed by ongoing developments and trends in the European tobacco market, including the emergence of new products" such as e-cigarettes (vapes) and other novel nicotine delivery systems. They emphasize an "urgent" need for a harmonized EU-level approach to these issues and call on the Commission to present a legislative proposal "without delay."
The letter highlights that the inadequacy of current EU-wide rules has led member states to adopt national measures, causing "fragmentation" and undermining the "level playing field" within the single market. The signatory countries expressed "deep disappointment" that a revision of the tobacco taxation directive was not included in the Commission's work program for the current year.
This push aligns with the European Commission's own 2020 impact assessment, which acknowledged that recent developments and new products like e-cigarettes reveal the limits of the existing legal framework. The Commission had also noted that while the 2011 directive initially spurred some tax increases, it "no longer provides the incentive" for further hikes. The letter was also sent to Taxation Commissioner Wopke Hoekstra, who would be responsible for drafting a new proposal. Any such tax-related legislation would require unanimous approval from all EU member states to pass.
