15 EU finance ministers call for swift reform of tobacco taxes

Vienna/Brussels – 15 EU countries, including Austria, are urging EU Commission President Ursula von der Leyen in a letter to urgently revise the directive on tobacco taxation. In the letter, which is available to APA, they emphasized that the current regulation is insufficient to “address the significant challenges arising from ongoing developments and trends in the European tobacco market,” such as new products like e-cigarettes or nicotine pouches.

The current regulation is nearly 15 years old. It sets minimum tax rates to ensure that tobacco products are taxed uniformly across all member states. However, new tobacco products like e-liquids are not yet covered by the old regulation. There is currently disagreement among EU countries on how to handle these products. New minimum rates and tax classes are also under discussion. The letter also criticizes the EU Commission for not including the reform of tobacco taxation in its work program for 2025.

Unfair competition due to national measures

Furthermore, “the increase in smuggling, illegal trade, and the production of tobacco products, as well as the health-damaging effects, must be combated.” Because there is no sufficiently harmonized EU approach to address these challenges, member states have taken measures at the national level. This has led to unequal competitive conditions and distortions in the internal market, the letter states. Therefore, a European legal act is urgently needed.

In February 2025, discussions in the Council (of the ministers of the member states, ed.) showed that almost all countries demanded a harmonized concept and a corresponding proposal from the EU Commission. “As finance and economic ministers of 15 member states of the European Union, we would like to express our deep regret that this has not been the case so far, and we urge your Commission to take the necessary steps to update the directive without delay,” the letter signed by Austria’s Finance Minister Markus Marterbauer (SPÖ) to the Commission President states. (27.05.2025)