Tobacco tax hikes: A costly gamble for Europe’s health and fiscal stability

July 01, 2025 by eureporter.co

Tobacco tax hikes: A costly gamble for Europe’s health and fiscal stability

A leaked internal report from the European Commission reveals serious concerns about proposed major tobacco tax hikes across the EU. While the reforms aim to improve public health and raise revenue, the Commission’s own analysis warns of unintended and potentially harmful consequences. The leaked impact assessment, reported by Bild on 12 June 2025, outlines steep excise duty increases—139% on cigarettes, 258% on rolling tobacco, and 1,092% on cigars. Vaping and heated tobacco products would also be taxed for the first time at the EU level. Though expected to generate €15.1 billion annually, the report raises doubts about the overall effectiveness and impact of the plan.

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