Cigarettes: up to 25 cents more per packet by 2027
The increase forms part of a three-year plan, running from 2026 to 2028, as provided for in the 2026 Budget Act
From 1 January 2027, a packet of cigarettes will cost around 25 cents more. This price rise, however, comes as no surprise: the 2026 Budget, which came into force at the start of the year, provided for a gradual increase in the fixed minimum excise duty on cigarettes, cigars and tobacco, to be implemented between 2026 and 2028.
There are also changes to the tax rate applied as a percentage of the retail price, which falls from 49.23 per cent in 2026 to 48.50 per cent in 2027 and 48 per cent in 2028, as well as the minimum tax liability, set at 216 euros per 1,000 cigarettes in 2026, 221 euros in 2027 and 227 euros from 2028 onwards – including excise duty and VAT.
It is important to emphasise that 25 cents is an approximate figure, in the sense that it should be interpreted as an average estimate of the effect that the tax changes will have on prices. The final cost, moreover, will vary depending on the brand: it is the Customs and Monopolies Agency that sets the retail price. The Agency is responsible for publishing updated price lists whenever new rates are introduced.
Not just traditional cigarettes
E-cigarette users will also have to contend with price rises, which will affect e-liquids: the tax levy will increase for both nicotine-containing and nicotine-free e-liquids, as well as for flavourings. However, whilst the average increase for packets of cigarettes is known, the same does not apply to e-cigarettes. The final price will also depend on the retailer selling the product.
Not even tobacco is exempt from the law. The cost of packets of loose tobacco – taking the 30-gram packets as a reference – may rise by a few tens of cents, up to around 60 cents. The price of heated tobacco is also rising, but, as with e-cigarette liquids, it is not possible to estimate the increase in terms of additional cents.
