Tobacco Europe, which represents three of the largest tobacco and nicotine producers in the EU (Imperial Brands, British American Tobacco, and JT International), criticizes the European Commission’s assessment as part of the review of the Tobacco Products Directive, the European directive that has defined the regulatory framework in recent years on key aspects such as packaging, ingredients, traceability, and advertising.
DOUBTS ALSO SHARED BY THE REGULATORY SCRUTINY BOARD
On April 1st, the European Commission published the evaluation report of the directive, the first step towards the future revision proposal (TPD III): this document was intended by the EU executive to provide a solid basis, grounded on updated evidence, to guide future regulatory choices, but according to the Tobacco Europe association it does not meet the standards of better regulation and risks producing a regulatory framework harmful to public health, the EU’s competitiveness, and public security.
Moreover, it is noted that even the European Commission’s oversight body, the Regulatory Scrutiny Board, expressed a critical opinion on the report: a signal that it does not meet the essential standards of “Better Regulation.”
“EUROPE FACES A HISTORIC OPPORTUNITY”
“Europe faces a historic opportunity to lead a concrete transition in reducing smoking. To achieve this goal, ideological battles must be left behind,” commented Enrico Ziino, Head of Corporate & Legal Affairs for Southeast Europe at Imperial Brands, among the producers affiliated with Tobacco Europe.
“Proportionate rules are needed, taking into account economic and social impacts, avoiding fueling the growth of the illicit market, with predictable harmful consequences on crime, product safety, and negative repercussions also on the health front. To truly achieve the smoking reduction goals set by Europe, less ideology and more scientific solidity are therefore required,” explained Ziino.
THE ISSUE OF HARM REDUCTION
One of the most sensitive points concerns the management of scientific evidence, particularly on the topic of harm reduction. The main criticisms highlighted by the sector association are the absence of a systematic comparative risk assessment between products, capable of clearly distinguishing combustible products from non-combustible nicotine-based products, despite several requests to this effect made by Member States, including Italy; and the limited involvement of the broader international scientific community, with participation not fully representative of the ongoing academic debate on harm reduction and tobacco control, although a significant number of scientists participated in the Consultations preceding the evaluation report.
Furthermore, it is lamented that there appears to be predominant use of a limited number of sources and reference analytical frameworks, with significant weight given to certain scientific committees and Commission contractors without full integration of the broader available scientific literature on the subject.
According to the association, the analysis reprises statements widely debated within the scientific community. The report considers vaping a gateway to smoking, despite – the tobacco producers’ reply – growing evidence that a record number of adult smokers have significantly reduced traditional cigarette consumption thanks to combustion-free potentially reduced-risk products.
Ultimately, it is noted that in a context characterized by increasing product diversification, the lack of a comparative analysis represents a significant limitation for building effective policies.
MORE ROOM FOR OPINIONS THAN EVIDENCE
The gaps are numerous and testify – according to Tobacco Europe – for example, that stakeholder consultation gave more space to opinions than to evidence, showing limited receptivity towards the demands of adult nicotine consumers, rural communities, Small and Medium Enterprises, business organizations, and members of the European Parliament.
THE IGNORED SUPPLY CHAIN
Moreover, Tobacco Europe also emphasizes that the report does not include a structured SME test to assess the regulatory impact, an analysis of territorial impacts, or an updated evaluation of employment effects despite the European tobacco supply chain employing no fewer than 1.5 million people, developing along 187,000 small retailers, and also guaranteeing over 100 billion euros in annual tax revenues to the treasury.
Today, 26,000 European producers cultivate 66,000 hectares of tobacco, employing 80,000 full-time jobs and between 350,000 and 390,000 seasonal workers. Italy represents 27% of the EU’s tobacco production, followed at a distance by Spain (14%), Greece (13%), and Poland (12%).
Europe is also supported by over 130,000 tobacconists. Only in Italy, tobacconists number about 55,000. These are small family-run businesses that, especially in rural communities, also perform a crucial role in maintaining local services, particularly where post offices and banks have gradually disappeared.
RISKS FOR THE NEXT STEPS
Looking ahead, the main risk is that the future TPD III will develop on bases not fully balanced, with significant consequences in terms of slowing innovation, loss of competitiveness, and growth of the illicit market, as well as broader impacts on the healthcare system. For this reason, producers, directly affected by the regulation’s effects, ask the EU to integrate solid scientific evidence, develop comparative product analyses, consider economic and social impacts, and ensure proportionality in measures.
“The report does not recognize the concrete progress made in reducing smoking rates in Sweden, the Czech Republic, and Greece, nor the broad and growing body of independent scientific studies demonstrating how smoke-free nicotine products reduce harm and offer alternatives to adult consumers, while neglecting the contribution of SMEs and the entire production chain to the EU economy,” stated Nathalie Darge, Secretary General of Tobacco Europe.
THE ISSUE OF ILLICIT TRADE AND THE BACKFIRE OF HIGH TAXES
Reference was also made to the economic issue of a supply chain that guarantees over 100 billion euros in annual tax revenues to the treasury. The economic issue is directly connected to concerns about illegal trade which, besides affecting health and consumer protection, also has a significant economic weight: according to the latest data, the criminal phenomenon, already analyzed here, has cost the 27 Member States 14.9 billion euros in lost revenues, in addition to lost tax revenues from electronic cigarettes and other smoke-free products.
In this case, the association believes that, as highlighted by comments from the Commission’s Regulatory Scrutiny Board in the report, the significant difficulties in law enforcement faced daily by customs, border, police, and health authorities of Member States have been overlooked.
In short, not only have bans and heavy restrictions on smoke-free products failed to eliminate demand but have pushed adult consumers towards illegal markets that do not provide age controls, safety standards, or taxes. In the Netherlands, for example, vaping among minors increased by 15% between 2023 and 2025 after the ban on flavored liquids. The Fraunhofer Institute estimates that about 50% of the vaping market in the EU is now illegal or non-compliant.
“There is a direct link between regulation and extreme taxation and the size of illegal markets,” said Darge. “Where Member States have imposed very high taxes, such as Belgium and the Netherlands, the government has lost control to criminal gangs and irresponsible retailers, who disregard consumer protections or age checks, profiting at taxpayers’ expense.”
With the paradox highlighted by Euromonitor International that in EU countries, while overall cigarette consumption continued to decline between 2015 and 2024, volumes of counterfeit products increased steadily and significantly, rising from about 4.1 billion units to 13.4 billion in 2024. Counterfeit cigarettes now represent about one-third of the illicit cigarette market in the EU.
NEW INCREASES TAKE EFFECT IN ITALY
All this while in our country the 2026 Budget Law has paved the way for a progressive increase in excise duties covering the period from 2026 to 2028, providing for a fixed minimum amount on cigarettes, cigarillos, and rolling tobacco, and redefining the coefficients for calculating excise duties on heated tobacco products.
The increases will generate additional revenue of 1.47 billion euros over three years: 213 million euros for 2026, 465.8 million for 2027, and 796.9 million for 2028. According to Assoutenti’s calculations, the excise duty on manufactured tobacco rises from 29.50 euros per 1,000 cigarettes in 2025 to 32 euros in 2026, then to 35.50 euros in 2027 and 38.50 euros in 2028. The minimum excise duty on cigarillos rises from 37 to 47 euros per conventional kilogram for 2026, to 49 euros for 2027, and from 2028 onwards to 51 euros per conventional kilogram. The minimum excise duty on rolling tobacco rises from 148.50 euros per conventional kilogram to 161.50 euros for 2026, to 165.50 euros for 2027, and to 169.50 euros per kilogram from 2028 onwards.
Also affected, despite being considered by experts an important exit strategy for addiction, are electronic cigarettes: the coefficient for combustion-free inhalation products consisting of liquid substances containing nicotine is set at 18% for 2026; 20% for 2027; 22% from 2028 onwards. For combustion-free inhalation products consisting of liquid substances without nicotine, the rates are 13% for 2026; 15% for 2027; 17% for 2028.
