EU Cigarette Excise Duty May Rise as Ministers Return to Negotiations

EU excise taxes on cigarettes will once again be debated by finance ministers. An attempt to reach a political agreement on the reform, which will also cover heated tobacco, e-cigarette liquids, and nicotine pouches, is scheduled for Monday, November 9th.

There is no approved increase or basis yet for calculating the new pack prices in Cyprus. The figure of €215 per 1,000 cigarettes is from the European Commission's initial proposal. It should not be presented as the final rate agreed upon by member states.

Cigarette excise duty in the EU – what is going to change?

The Commission presented its draft reform on 16 July 2025. It proposes raising minimum tax levels and extending common rules to products that have developed on the market since the current rules were adopted.

One goal is to reduce differences between national tax systems. The Commission also links the reform to health policy and the European Beating Cancer Plan.

Currently, the minimum excise tax on cigarettes is €90 per 1,000 cigarettes. The initial proposal calls for an increase to €215, an increase of approximately 139%. This is an increase in the EU minimum tax, not an announcement of a 139% increase in the price of each parcel.

The Commission's proposal is not the final compromise

The amounts presented below represent selected elements of the original proposal. Some categories include percentage rates, alternative tax calculation methods, and transitional periods.

Therefore, they are not a complete table of future taxes in Cyprus. The draft also provides for a mechanism to adjust minimums to inflation and price level differences between countries.

The European Parliament rejected the main proposal

On June 17, 2026, the European Parliament rejected the proposal concerning the structure and rates of excise duties. 439 MEPs voted against, 181 voted in favor, and 38 abstained.

However, this did not conclude the procedure. Parliament has a consultative role in this matter, but the decision rests with Council of the European Union, which is composed of representatives of the Member States.

Parliament supported a separate bill on general principles for excise tax administration with amendments. Therefore, the June vote should not be interpreted as a rejection of all elements of the package.

Unanimity is required to adopt the changes

Indirect tax harmonization requires unanimity among member states in the EU Council. Attempting to reach an agreement at ECOFIN does not mean that reform is a foregone conclusion.

For consumers in Cyprus, the final rates, their application dates, and their relationship to taxes already collected in the country will be important. Without this information, it would be premature to provide a specific future parcel price.

The next stage of negotiations is scheduled for November 9th. Only the outcome of the meeting will reveal whether the countries will agree on a common position and what solutions will be included in the subsequent procedure.