# EU Proposes Stricter Tobacco Excise Taxes with Extended Transition for Italy New rules target nicotine products and cross-border purchases while allowing Italy until 2036. - **Source:** [Il Sole 24 Ore – Mondo](https://www.ilsole24ore.com/sez/mondo) - **Published:** 2026-11-07 - **Topic:** [politics](https://brifing.si/c/politics) - **Original article:** - **On Brifing:** https://brifing.si/s/2ebde14f-c990-4133-9d75-8e90615cfa8c ## Proposed EU Tobacco Reform The Irish presidency of the European Union has introduced a compromise proposal to overhaul tobacco taxation. The plan aims to update a 2011 directive that no longer reflects current market realities. Key measures include stricter limits on cross-border cigarette purchases and higher minimum excise duties on traditional tobacco and nicotine-based products. ## Cross-Border Purchase Limits A central component of the proposal involves reducing the reference threshold for personal tobacco purchases between EU member states. The new limit is set at one carton of cigarettes per person, a significant decrease from the previous four-carton threshold. This adjustment seeks to curb cross-border tax arbitrage and harmonize consumption across borders. ## Extended Transition for Italy While the reform introduces rigorous new standards, the proposal grants specific flexibility to certain nations. Italy, along with nine other member states, has been granted an extended transition period to comply with these regulations. These countries have until 2036 to fully align their national tax systems with the new EU-wide requirements. ## Taxing Modern Nicotine Products The reform seeks to extend harmonized taxation to newer products, including e-cigarettes and nicotine pouches. Dublin proposes an initial minimum tax of 10% of the price or 30 euros per kilogram. This rate is intended to rise gradually, reaching 50% or 50 euros per kilogram by 2032, pending final agreement by ministers. ## Political Hurdles in Negotiations Reaching a consensus remains challenging, as the reform requires unanimous approval from all twenty-seven member states. A primary point of contention involves the taxation of tobacco-free nicotine pouches, which are highly popular in Sweden. Spain has also raised specific concerns regarding the taxation of fine-cut tobacco, necessitating further diplomatic compromise efforts. ## Mechanism of Excise Duties The European Union does not set final retail prices for tobacco products directly. Instead, it mandates minimum excise duties that member states must implement within their national borders. Countries retain the sovereignty to impose higher tax rates than the EU minimum, allowing for variations in fiscal policy across the different European markets. ## Upcoming Ecofin Ministerial Meeting The Irish presidency aims to break the current legislative deadlock during the Ecofin meeting scheduled for Monday, November 9. High-level European diplomats have indicated that an agreement is within reach, though they acknowledge that further negotiations are essential to address the remaining objections from specific member states regarding the proposed tax structures. ## Strategic Market Implications This reform represents a significant shift in how the EU manages public health and fiscal policy regarding nicotine. By updating the outdated 2011 directive, the bloc intends to create a more consistent regulatory environment. The outcome will likely influence pricing strategies for tobacco companies and consumer behavior across the entire European single market. ## Sources covering this story - https://www.ilsole24ore.com/art/tabacco-stretta-ue-acquisti-esteri-e-nuove-accise-ma-piu-tempo-italia-AJCjyb8B — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._