Revision of the tobacco taxation Directive

Background

The Tobacco Taxation Directive (2011/64/EU) is one of the key legislative documents that ensures the harmonisation of the single market in terms of excise taxation. The directive also serves a number of other objectives, such as ensuring fair competition, combating tax fraud and protecting people’s health.

In July 2025, in light of evolving public health challenges and significant shifts in the market, the European Commission adopted a proposal for the revision of the Tobacco Taxation Directive. The reform proposes changes to align the Directive with the EU’s health and economic priorities and strengthen the single market.

The EESC recognises the need to update the Tobacco Taxation Directive, in order to align the taxation of tobacco and nicotine products with market developments and the EU’s public health objectives. However, it stresses that the revision must respect the principles of proportionality and fiscal neutrality, avoiding distortions and disproportionate economic impacts on European production chains.

While the EESC fully embraces the commitment to reducing tobacco consumption, the Committee points out that taxation cannot be the only, nor the principal, tool to achieve this goal.

Key points

The EESC:

• supports the revision of the Tobacco Taxation Directive, recognising the need to adapt the excise framework to market developments, new products and public health objectives, while stressing that the reform must remain proportionate, predictable and economically sustainable;
• warns against abrupt or excessive increases in excise duties, which risk fuelling illicit trade, undermining fiscal revenues and weakening public health outcomes; therefore recommends that excise adjustments be gradual and accompanied by strengthened enforcement, customs cooperation and cross-border anti-smuggling measures;
• calls for the consistent application of risk-proportionate taxation, ensuring that non-combustible and reduced-risk products are not taxed the same as combustible tobacco products, in line with the principle of ‘less harm, less tax’ and the objectives of the Europe’s Beating Cancer Plan.

Additional information

Section: Economic and Monetary Union and Economic and Social Cohesion (ECO)

Opinion number: ECO/605

Opinion type: Mandatory

Referral: COM(2025) 580 final 2025/0580 CNS COM(2025) 580 final 2025/0580 CNS COM(2025) 581 final 2025/0581 CNS

Rapporteur: Matteo Borsani (Group I - Italy)

Date of adoption by section: 5 February 2026

Result of the vote: 57 in favour, 8 against, 3 abstentions

Date of adoption in plenary: 18-19 February 2026

Result of the vote: 198 in favour, 38 against, 19 abstentions

Contact

Marco Pezzani

Press Officer

Tel.: +32 2 546 9793 | Mob: +32 470 881 903

E-mail: marco.pezzani@eesc.europa.eu 

Jüri Soosaar

Administrator

Tel.: +32 2 546 9628

E-mail: juri.soosaar@eesc.europa.eu