European Union Considers Doubling Tobacco Tax Rates

The European Commission is considering raising the minimum rates on cigarettes by almost 100% across the European Union.

Average excise rates on cigarettes could be raised by up to 94% to lower smoking rates and raise revenue across the bloc, according to a draft impact assessment seen by Bloomberg.

Further, the impact assessment also recommended “a high amount of excise duty” on heated tobacco products and liquids for e-cigarettes, which are currently not taxed at the EU-level. While those rates won’t be at the same rate as cigarettes, they “would close a regulatory gap and remove substantial fragmentation caused by ...