The European Commission has drafted a reform of the Tobacco Excise Directive (TED) to increase minimum excise taxes on traditional cigarettes by 139% and introduce the first EU-wide minimum tax rates for next-generation products (NGPs). The proposal targets alternative nicotine products, including e-cigarettes, heated tobacco, and nicotine pouches, which the Commission states have outpaced current regulations.
Currently, the Council of the EU is negotiating the draft. Because the European Parliament did not issue a formal opinion in June 2026, the reform requires unanimous approval from all 27 EU member states to take effect.
Brussels bases these measures on health and economic data. The EU consumes 300 billion cigarettes annually, resulting in 700,000 deaths and €25 billion in yearly healthcare costs. Additionally, World Health Organization data shows that 11.6% of youth aged 13 to 15 in the European region use NGPs.
To combat the illicit market, the reform expands the EU track-and-trace system to raw tobacco. If approved, manufacturers and consumers will face higher costs across all nicotine categories.
