More expensive cigarettes, up to 15 cents more per pack in 2026: this is what the manoeuvre envisages

The manoeuvre intervenes on the minimum amount of excise duty on shredded tobacco (fine-cut tobacco to be used for rolling cigarettes), increasing it to EUR 161.50 per kilogram for the year 2026, to EUR 165.50 per kilogram for the year 2027 and to EUR 169.50 per kilogram from the year 2028.

The method of calculating the minimum tax burden for cigarettes is also simplified. It is in fact established that the minimum tax burden, comprising excise duty (in its two components) and value added tax, on cigarettes is fixed by reference to a specific fixed amount per unit of product, set at EUR 216 per 1,000 cigarettes for the year 2026, at EUR 221 per 1,000 cigarettes for the year 2027, and, as from the year 2028, at EUR 227 per 1,000 cigarettes.

The amount of excise duty on smokeless inhalation tobacco (so-called 'heat not burn' products) is reduced, which is calculated by applying a coefficient to the amount of excise duty on an equivalent quantity of cigarettes. This quantity is based on the weighted average price of a conventional kilogram of cigarettes and the conventional consumption equivalent. The coefficient is recalculated as follows: 40.50 per cent for the year 2026;  41 per cent for the year 2027 and 42 per cent as from the year 2028. Under the current version of the Single Text on Excise Duties, the excise duty on smokeless inhalation tobacco would increase to 42 per cent as of 1 January 2026. The manoeuvre therefore reduces the taxation for the years 2026 and 2027.

The rate of excise duty on non-combustion inhalation products consisting of liquid substances (so-called 'electronic cigarettes' or 'e-cigs') is then changed, which is calculated by applying a coefficient to the amount of excise duty on an equivalent quantity of cigarettes. This quantity is based on the weighted average price of a conventional kilogram of cigarettes and the conventional consumption equivalence. The manoeuvre intends to increase the consumption tax on both nicotine-containing and nicotine-free products. The tax also applies to liquids and flavourings. The coefficient for non-combustion inhalation products consisting of liquids containing nicotine is set at: 18 per cent for the year 2026;  20 per cent for the year 2027;  22 per cent, as of the year 2028. On the other hand, for non-combustion inhalation products consisting of liquid substances without nicotine, it is set at the following rate:  13 per cent for the year 2026; 15 per cent for the year 2027;  17 per cent for the year 2028.

Finally, the manoeuvre changes the excise duty rates on manufactured tobacco products as follows:  for cigarillos, the rate rises from 24 per cent to 27 per cent for the year 2026, to 27.5 per cent for the year 2027 and to 28 per cent from the year 2028;  for cigarettes, currently at 49.50 per cent, the rate falls to 49.23 per cent for the year 2026, to 48.50 per cent for the year 2027 and to 48 per cent from the year 2028. For cut tobacco, the rate increases from 60 per cent to 60.7 per cent for the year 2026, 60.9 per cent for the year 2027 and 61.1 per cent from the year 2028.