What changed

PR_CNS_LegAct_am

P10_TA(2026)0212

Symbols for procedures

General arrangements for excise duty applied to tobacco and tobacco related products

* Consultation procedure

Committee on Economic and Monetary Affairs

*** Consent procedure

PE784.421

***I Ordinary legislative procedure (first reading)

European Parliament legislative resolution of 17 June 2026 on the proposal for a Council directive amending Directive (EU) 2020/262 as regards the general arrangements for excise duty in respect of tobacco and tobacco related products (COM(2025)0581 – C10-0296/2025 – 2025/0581(CNS))

***II Ordinary legislative procedure (second reading)

***III Ordinary legislative procedure (third reading)

(The type of procedure depends on the legal basis proposed by the draft act.)

Amendments to a draft act

Amendments by Parliament set out in two columns

Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

Amendments by Parliament in the form of a consolidated text

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.

By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council directive amending Directive (EU) 2020/262 as regards the general arrangements for excise duty in respect of tobacco and tobacco related products

(COM(2025)0581 – C100296/2025 – 2025/0581(CNS))

(Special legislative procedure – consultation)

(2b) Changes to the guide levels should be based on the principle that products in the new categories under Directive (EU) …/… [OJ: please insert the number of the Directive contained in document 2025/0580(CNS)] serve as alternatives for products already subject to the guide levels under Council Directive (EU) 2020/262. Guide levels for those new categories should therefore be comparable to those of products already subject to the guide levels under Council Directive (EU) 2020/262.

Amendment 3

Proposal for a directive

Article 1 – paragraph 1 – point 1 a (new)

Directive (EU) 2020/262

Article 32 – paragraph 3 – point a

Present text

Amendment

(1a) in Article 32(3), point (a) is replaced by the following:

a) for tobacco products:

‘a) for manufactured tobacco and tobacco related products:

– cigarettes: 800 items,

– cigarettes: 800 items,

– cigarillos (cigars weighing not more than 3 g each): 400 items,

– cigarillos (cigars weighing not more than 3 g each): 400 items,

– cigars: 200 items,

– cigars: 200 items,

– smoking tobacco: 1,0 kg;

– smoking tobacco, other manufactured tobacco: 1,0 kg,

– heated tobacco: 800 items or 260 g of other formats,

– liquid for electronic cigarettes: 80 ml,

– nicotine pouches, other nicotine products: 560 g;’.

EXPLANATORY STATEMENT

The Tobacco Taxation Directive (TTD) recast aims to update the rules on tobacco taxation both in terms of minimum excise duty rates as well as by including novel tobacco related products that have emerged since the last TTD review. Given the dual objective of ensuring both the proper functioning of the internal market and a high level of health protection, it is necessary to find an ambitious but also feasible and realistic equilibrium. The Rapporteur of course understands the need for a review of the tobacco taxation rules in the EU - the minimum rates are becoming outdated due to wage increases and inflation, new products have entered the market and a certain level of harmonization across EU Member States is desirable. Moreover, tobacco taxation can have an impact on public health.

However, it is essential to strike the right balance. Raising the minimum rates of taxation must be done in a careful and thought-out way, taking into account all possible effects on consumers, national tax authorities and the tobacco products market. The effectiveness of excise duties depends not only on the level of minimum rates, but also on the pace, structure and predictability of their implementation. Excessively abrupt or rigid adjustments may distort legal markets and increase incentives for illicit trade, thereby undermining both revenue collection and enforcement objectives. That is why the Rapporteur proposes a more gradual and pragmatic increase of the minimum rates.

A central consideration of the Report is the differentiated treatment of products based on their characteristics, health risks and patterns of use. The Commission proposal recognises the diversity of tobacco and nicotine products and introduces specific tax structures for individual categories. The Rapporteur supports this differentiated approach and considers it essential to always consider the specificities of different tobacco products.

The Report also addresses the balance between public health objectives and fiscal structure. Evidence suggests that some noncombustible products may present lower risks than traditional cigarettes and may contribute to reduced consumption of the most harmful products. The Rapporteur therefore believes that excise duty policy should avoid a one-size-fits-all approach and should reflect relative risk profiles in a proportionate manner.

The Commission introduced two new mechanisms in the TTD - the indexation of minimum rates that takes place every three years and the price level index. The Rapporteur considers both tools to be useful for future-proofing the TTD. The Report adapted the indexation tool by limiting it to core inflation and by introducing a cap of a maximum adjustment by 12 % for better predictability. The price level index ensures a fairer determination of the minimum rates based on how high the general price level is in a given Member State. The Rapporteur agrees with this logic and decided that the price level index’s weight in the calculation of the final minimum rate should be increased from one third to one half.

Finally, the Report highlights the role of transitional periods in facilitating the smooth implementation of the new legal framework. Transitional regimes allow Member States and market participants to adapt progressively to increased minimum rates, thereby reducing the risk of market disruption and higher illicit trade. Therefore, the Rapporteur decided to prolong the transitional period by one year until the end of 2032.

On this basis, the Report proposes targeted adjustments aimed at strengthening the proportionality, coherence and practical effectiveness of the Commission proposal, while fully respecting its core objectives.

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the report, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Tobacco Europe AISBL, reg. number: 1496873833-97

European Cigar Manufacturers Association, reg. number: 92802501097-37

European Commission

Smoke Free Partnership, reg. number: 6403725595-50

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

PROCEDURE – COMMITTEE RESPONSIBLE

Title

Amending Directive (EU) 2020/262 as regards the general arrangements for excise duty in respect of tobacco and tobacco related products

References

COM(2025)0581 – C10-0296/2025 – 2025/0581(CNS)

Date Parliament was consulted

12.11.2025

Committee(s) responsible

Date announced in plenary

ECON

15.12.2025

Rapporteurs

Date appointed

Tomáš Kubín

11.9.2025

Discussed in committee

19.3.2026

4.5.2026

Date adopted

3.6.2026

Result of final vote

+:

–:

0:

32

21

2

Date tabled

8.6.2026

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

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