"Cigarettes are becoming more affordable in Europe" - WHO Report: Tobacco taxes, the most effective measure to reduce consumption
Cigarettes are becoming more affordable across much of Europe, the World Health Organization has warned, as the European Commission is considering new super-taxes on tobacco products and e-cigarettes.
The cost of buying 2,000 cigarettes of the most popular brand, measured by gross domestic product per capita, fell in 14 of the 27 EU countries over the decade 2014-2024, the WHO report on the Global Tobacco Epidemic said.
The WHO highlights that governments around the world are not taxing tobacco enough, even though higher taxes are the most effective way to reduce consumption. In 2024, only 15 percent of the world's population lived in countries that tax cigarettes at the WHO-recommended level of 75 percent or more of the price of the most popular brand.
Europe still taxes tobacco heavily compared to the rest of the world, with 21 of the 27 EU countries reaching the minimum level recommended by the WHO. Germany has the lowest score in the EU, taxing 61.4 percent of the price of the most popular brand.
But the European Commission is aiming higher, suggesting raising the minimum tax on cigarettes from €90 to €215 per 1,000 units. According to the impact assessment, the tax on rolled tobacco should increase by 258 percent.
In line with the WHO report, the Commission document said that higher tobacco taxes and prices “have been shown to be the most effective measures to reduce overall use”. But current minimum tax levels “have lost their effectiveness in reducing tobacco consumption”. Around 40 percent of the decline over the last decade in the EU has been due to taxation, the document says.
The tobacco industry opposes major tax increases in the EU, arguing that high tariffs encourage the illicit tobacco trade. But a recent report by the European crime agency, Europol, found that while high taxes are a factor, illegal production is also supported by disruptions in supply chains due to crisis situations, improved security in the trade of original brand cigarettes and increased capacity in illegal factories.
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