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Smokers in Europe may soon feel the pinch in their wallets. The European Commission is proposing a massive increase in taxes on cigarettes, roll-your-own tobacco, and even e-cigarettes, and Greece is sounding the alarm.
Under the plan, taxes on roll-your-own tobacco could jump 258% and on regular cigarettes by 139%. For consumers, that could mean a pack of 20 cigarettes going from €4.60 today to around €7, a jump that would hit budgets hard and, some warn, could push more people toward smuggling.
At a meeting of the EU’s finance ministers last week, Greek Finance Minister Kyriakos Pierrakakis urged a more careful approach. He suggested lower tax hikes, a longer phase-in period, and calculating taxes based on the weight of the product rather than each pack or stick.
“Experience shows that sharp increases in tobacco taxes often lead to smuggling,” Pierrakakis said. “If prices rise too fast, it can hurt both consumers and the domestic tobacco industry.”
Big Money for the EU, Big Cost for Consumers
The Commission says higher taxes are one of the most effective ways to reduce smoking, and they expect the new rules could bring in an extra €15.1 billion for EU coffers. Cigars would see the biggest hike, a jaw-dropping 1,092% increase. Even e-cigarettes, often cheaper than traditional tobacco, would face new levies depending on nicotine content.
For regular smokers, these increases could feel like a punch to the pocketbook. And while public health goals are clear—fewer people smoking—the potential fallout includes more smuggling, cross-border shopping, and financial strain for those who can’t quit.
Not Everyone Is On Board
The EU is divided. Northern countries like the Netherlands are pushing hard for higher taxes to create a level playing field across borders and target products popular with young people. Greece, Italy, and Romania are more cautious, pointing to past experiences where steep tax hikes fueled illegal trade and hurt local businesses.
The Commission is also discussing even stricter measures in the long term, including limiting points of sale, banning certain filters, and moving sales from shops and kiosks to nonprofit organizations, in line with World Health Organization recommendations.
Smokers’ Wallets vs. Public Health
The bottom line: if the EU goes full throttle on these taxes, smoking could become a luxury for many. For Greece, the challenge is finding a balance, reducing smoking while protecting consumers and local industry and keeping smuggling in check.
“We support the initiative in principle,” Pierrakakis said, “but it has to be done in a way that doesn’t punish consumers or the economy.”
For smokers across Europe, the message is clear: the cost of lighting up may soon climb dramatically, and everyone from consumers to the local tobacco industry is watching closely.
