Excise duty on tobacco: rates and general rules

In July 2025, the Commission presented two proposals on excise duty on tobacco. One amends the rates and structure of the tax, whilst the other amends the general rules governing its application. Reports on both proposals were drawn up by the Committee on Economic and Monetary Affairs (ECON), with Tomáš Kubín (PfE) acting as rapporteur in both cases. This is a consultation, i.e. a special legislative procedure governing tax harmonisation under Article 113 of the Treaty on the Functioning of the EU. The Council decides unanimously, whilst the Parliament merely issues an opinion. The Council must await the opinion, but is not bound by its content.

The proposed rates apply to cigarettes, cigars, roll-your-own tobacco, heated tobacco and new nicotine products. For cigarettes, the Commission proposed raising the minimum tax to 63 per cent of the weighted average retail price and to at least €215 per 1,000 cigarettes. In its report, the ECON Committee had proposed, amongst other things, 60 per cent and €200. The plenary session rejected the Commission’s proposal by 181 votes to 439, with 38 MEPs abstaining, and called on the Commission to withdraw the proposal.

The pro-European majority was divided on this vote. Only the EPP voted in favour (136 in favour, 22 against, 11 abstentions). The S&D (9 in favour, 109 against, 9 abstentions), Renew (14 in favour, 54 against, 2 abstentions) and Greens/EFA (all 46 against) voted against. The ECR (14 in favour, 59 against), PfE (5 in favour, 72 against) and ESN (1 in favour, 20 against) – all three far-right groups – also voted against. The Left, the far-left group, voted in the same way (all 42 against).

The second proposal amends Directive (EU) 2020/262 and does not concern tax rates. It regulates the movement of goods under a conditional tax exemption regime and sets indicative levels for goods purchased by individuals for their own use. Two amendments adopted add new product categories to the indicative levels from the directive on rates – that is, the one whose proposal was rejected by the plenary.

The plenary approved this proposal by a vote of 325 to 304, with 29 MEPs abstaining. The EPP (143 in favour, 18 against, 8 abstentions) voted alongside the ECR (71 in favour, 6 against) and the PfE (76 in favour, 2 abstentions). Voting against were the S&D (4 in favour, 113 against, 7 abstentions), Renew (14 in favour, 55 against, 1 abstention), the Greens/EFA (all 45 against) and The Left (all 42 against). The ESN was largely against (4 in favour, 18 against). The opinion was adopted thanks to the votes of the ECR and PfE. Without the votes of the three far-right groups, the ratio would have been 174:280.

In the ECON Committee on 3 June 2026, both reports were adopted by the same ratio of 32:21:2, with the ECR and PfE voting in favour. In plenary, they voted the same way as in committee on the general rules, but joined the rejection on the rates.

The EPP voted in favour in both votes, whilst the S&D, Renew and Greens/EFA voted against in both. None of them split their votes.