EU plan to tax e-cigarettes - Italy, Greece and Romania speak out against it
Most EU member states called on the European Commission to put on the agenda a plan to tax e-cigarettes and increase minimum excise duty rates on cigarettes and cigars.
In a letter to Commission President Ursula von der Leyen, countries including Germany, France, Spain and the Czech Republic urged her to "take the necessary steps without delay to revise the Tobacco Taxation Directive", which was last revised in 2011.
They want to unblock a proposal that would set minimum tax rates for e-cigarettes, nicotine pouches and heat-treated tobacco for the first time. It would also significantly increase minimum tax rates for cigarettes and cigars, with the aim of harmonising taxation across the EU and reducing tobacco fraud.
"The current scope and provisions of the directive are not sufficient to enable member states to address the significant challenges posed by ongoing developments and trends in the European tobacco market, including the emergence of new products," the 15 EU finance and economic affairs ministers wrote in a letter.
The committee postponed the relevant draft law to 2022 due to concerns about the impact that the increase in excise taxes could have on the high inflation that was being recorded at the time.
EU officials said a new proposal is expected soon. However, the bill requires unanimous approval. Italy, Greece and Romania are among the minority of EU member states lobbying against the bill.
Under a 2022 proposal, which was not adopted at the time, the minimum excise tax rates for cigarettes would increase by 100%, for roll-your-own tobacco by 200%, and for cigars by 900%. These minimum rates could change in the final proposal.
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